Blockchain-based Celsius Network, which provides loans and interest income in BTC and ETH, has reported profitability after just 18 months of starting service.
The platform allows users to borrow or lend crypto assets. It has announced contributing 80 percent of its revenues to the depositor community as a weekly interest income.
While giving no further information, Celsius stated that it became profitable at the beginning of 2020. It generates $1.5 million in monthly revenues, expecting to record robust revenues for March and the first quarter of 2020.
Founded in 2017, Celsius completed its initial coin offering (ICO) in March 2018. Later on, it launched an application-based wallet for crypto holders.
Additionally, the company indicated that while several crypto enthusiasts support their prices through foreign investors, Celsius has concentrated on building a community and “disrupting the traditional banking model by putting customers before shareholders and providing 80% of its total revenue back to its community of depositors.”
CEO Alex Mashinsky said:
“We are only just getting started. Celsius has proven beyond any doubt that when you act in the best interest of your community, you can do good and do well at the same time.”
At the time of writing, Celsius rose 2.83 percent to $0.1713. The cryptocurrency ranks 75th with a market cap of $51.65 million.
Celsius Crypto Loan Interest Hits $11M
The platform has reported in its quarterly update that it has more than doubled its interest payments in three months. This is another signal of the crypto lending industry’s continued growth, as more funds are attracted by decentralized finance (DeFi) operations.
According to the report, Celsius paid over $11 million worth of Bitcoin (BTC), Ether (ETH) and other cryptocurrencies as total interest income. This is a staggering increase of 120% from just $5 million figure reported on November 2019.
The report revealed that Celsius manages $730 million in customer deposits and loan collateral, with an increase of 62 percent from the $450 million figure stated in the last report.