Celsius can be considered one of the most successful businesses

Among the hundreds of ICOs that have disappeared from the ecosystem, Celsius can be considered one of the successful businesses. It is not about an extreme increase in the value of the token generated by speculation, but the fact that it has managed to become a respected actor in the crypto market.

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1 Interest for depositors, not for shareholders

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The New York startup raised $ 50 million in May 2018 through an ICO from the sale of the CEL token. The idea was to allow cryptocurrency holders to take loans in fiat currencies, guaranteed with cryptocurrencies. At the same time, depositors can earn interest on the CEL token.

Since launch, according to CEO Alex Mashinsky, 10,415 Celsius users have used the lending service. The mobile application supports Bitcoin, DAI and 18 other assets, and the volume of loans has increased.

The BitGo custody provider has confirmed that it has received over $ 1 billion in cryptocurrency deposits from Celsius in the last year.

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Celsius is registered with FinCEN as a money transmitter and holds several state licenses to issue loans. With a staff of 52 employees, Mashinsky estimates that the company has net income of $ 1 million per month.

Interest for depositors, not for shareholders

“Our role is to maximize the yield as much as possible and we do this by borrowing cryptocurrencies deposited. Half of our business is with exchanges, and the other half with hedge funds that use them to create markets, arbitrage or different purposes. ”

Among the partners mentioned by Mashinsky are Polychain Capital, Binance and Bitfinex.

“We lend to different institutions on different rates,” Mashinsky said. “The rate at which we grant loans is related to the quality of the institution.”

Regardless of where the money goes after being deposited with Celsius, he says the average deposit for Celsius users is worth over $ 33,048. Also, 30% of customers chose to receive interest on CEL tokens. The token price remained at the ICO value of $ 0.06.

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Compared to the $ 1 billion worth of BitGo deposits facilitated by Celsius, the entire “decentralized financing” space, which includes more than a dozen startups, is very small. According to DeFi Pulse, only $ 483 million is currently locked in loans.