Crypto lending startup Celsius raised $50 million in a token sale in 2018.
Lending volume has surged since then, with 10,415 Celsius users taking out fiat loans after locking in crypto collateral.
BitGo confirmed to CoinDesk that it held $1 billion worth of crypto deposits from Celsius over the past year.
According to CEO Alex Mashinsky, 10,415 Celsius users have taken out fiat loans by locking up crypto collateral.
The custody provider BitGo confirmed to CoinDesk it has received more than $1 billion worth of crypto deposits from Celsius over the past year.
Mashinsky cited security and business risks as the reason Celsius can't publish full details about loans to external parties.
Regardless of where the money goes after it is deposited with Celsius, he says the average Celsius user deposit is worth more than $33,048, with 30 percent of customers choosing to receive interest in CEL tokens.
Although Mashinsky said Celsius is currently seeking its first venture capital raise, to date the startup has been solely funded through ICO proceeds.
Celsius user Rachen Cohen told CoinDesk she prefers interest paid in CEL because she has "Faith in the project" and believes "CEL will flourish." She prefers not to take the fiat loans, primarily using Celsius to lock up her bitcoin and earn tokens as interest.
While critics like Baker refer to Celsius as a crypto bank, Mashinsky refuted that characterization and said the startup isn't seeking a banking charter or to register its token as a security.
How Celsius Turned Its Crypto ICO Into a Billion-Dollar Lending Business
gepubliceerd op Sep 7, 2019
by Coindesk | gepubliceerd op Coinage
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