Crypto-Backed Loans On The Rise, Celsius Network Report Reveals

Celsius Network, a lending firm that allows its users or customers to collateralize the crypto coin holdings they own to take out loans, has reportedly had a great run in the second half of last year. In a recent report, it stated that it has churned out over half a billion dollars worth of loans to crypto holders between August and December, the last five months of the year 2018.

To be precise, the report noted that it disbursed loans worth a massive figure of 630 million dollars. All these loans were backed by cryptocurrencies as collaterals. The company, which is originally from London, has a strong lending business involving both direct lending as well as providing for interest-earning wallets.

Its website tells us:

“Celsius launched its services on July 2018 and since, we have done over $600 Million in coin loans. We used the interest we earned from these coin loans to buy BTC, ETH and other cryptocurrencies to pay interest to our community of Crypto depositors and to buy back CEL tokens. We also funded the industry’s largest single dollar loan of $5,000,000. We charge no origination or closing fees, no penalties, no early termination fees, and no default fees. We have not liquidated or repossessed a single loan since we launched. You can ask the other guys if they can say the same thing about their services.”

Now, over the given period, the company served over sixteen thousand people spread across one hundred countries around the world as they registered as fresh users in the network. Clearly, the crypto bear market has had little bearing on the lending platform’s success.

To quote the Chief Executive Officer or CEO of the company, Alex Mashinsky,

“Celsius’ amazing performance these last six months proves that if you act in the best interests of your community, they will recognize your efforts and support you.Every day on our platform, members are borrowing crypto, receiving dollar loans, and more at the lowest APRs.”

Borrowers who use the Celsius Network can get loans at pretty low rates of interest by placing their crypto holdings as collateral. Rates are often as low as just 4.5% APR. The accepted forms of crypto for this firm are Bitcoin, Ripple, Ethereum and Litecoin.

Mashinsky also noted:

“Banks are no longer the only way to borrow. Celsius Network is modelling a new financial future that’s based on the blockchain and designed for the global crypto community.”

You May Also Read: How To Secure Crypto Wallets?