Crypto Lender Celsius Taps 50K Bitcoin Deposits Amid Pandemic

Crypto Lender Celsius Taps 50K Bitcoin Deposits Amid Pandemic

Celsius Network, the crypto-based loan and borrowing platform, has topped 50,000 Bitcoin (BTC) in deposits, worth more than $380,000,000, since its launch back in August of 2018.

With over 100,000 active users of its app, growth in the company is now on track to outperform 60 percent in 2019.

Alex Mashinsky, Celsius Chief Executive Officer, said he believes that the growth of the network user base and deposits “reflects the increasing unease with the results of the 2008 and 2020 bailouts,” noting that:

“Most of the benefits went to the too big to fail and those close to the Washington giveaway plate. Celsius represents the opposite of that. We treat everyone equally, no matter if you have $10 or $10m, and we always act in the best interest of our community.”

One day after US stock markets scored their largest monthly rally since 1987, even as first-time unemployment claims hit a record 26 million, Mashinsky noted:

“Our economy post-coronavirus is going to have an L-shaped level of economic activity but the stock market believes we have a V-shaped recovery. This is mostly due to the floor the Fed put under the bond and credit markets, which made the speculators go wild again.” 

The CEO argued that rising demand for crypto loans comes from a section of the public that “does not believe in this story and knows hard times are ahead of us.”

Choosing to place more of their assets denominated in Bitcoin with the network, he argued, these users are using an alternative means of accessing low-cost loans and earning interest during a period of economic uncertainty that has never been before seen.

Crypto Lenders Rising in Popularity

As reported, Celsius Network became the fastest-growing crypto-lender with a coin loan origination of $2.2 billion in August 2019. By November, the total amount of the loan had almost doubled again, to $4.25 billion.

The network offers varying interest rates on deposits of a wide range of major cryptocurrencies including Bitcoin, Ether (ETH) and Litecoin (LTC), and altcoins such as Bitcoin Gold (BTG), Dash (DASH), Zcash (ZEC) and EOS.

The company has started offering compounding interest on cryptocurrencies deposited into its wallet as of this February.

Crypto-lending platforms continue to gain traction, with an increasing number of players entering the space, such as BlockFi, Nexo, YouHolder and SALT Lending.

Last month, Huobi’s crypto exchange and wallet provider integrated services from Cred’s decentralized crypto lending platform to enable users to earn interest in their exchange wallet holdings.

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Abdulhay Mahmoud 415 Articles
Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.