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– TIMESTAMPS –
1:59 What is Celsius?
6:13 Too Good To Be True?
9:28 Is Celsius Safe?
13:34 Celsius Leadership
15:42 CEL Tokenomics
⛓️ 🔗 Useful Links 🔗 ⛓️
► Celsius business model: https://medium.com/@CelsiusNetwork/what-we-do-how-we-do-it-9a82124f7159
► What is securities lending: https://www.investopedia.com/terms/s/securitieslending.asp
► What is rehypothecation: https://www.investopedia.com/terms/r/rehypothecation.asp
► Securities lending risks: https://www.blackrock.com/uk/individual/education/how-to-invest/securities-lending
► No Celsius institutional liquidations: https://cointelegraph.com/news/celsius-network-is-profitable-and-resisting-market-downturn-claims-ceo
► Blockfi data breach: https://cointelegraph.com/news/blockfis-data-breach-may-allow-criminals-to-extort-rich-clients
► Alex Mashinsky track record: http://www.mashinsky.com
► Celsius equity fund raise: https://app.bnktothefuture.com/pitches/celsius-network
► Tether invests $10M in Celsius: https://cointelegraph.com/news/10m-investment-from-tether-wont-change-celsius-mission-of-sharing
❓What Is Celsius ❓
In a nutshell, it is a centralized crypto lending platform that enables you to earn interest, take out a crypto loan and pay or be paid in crypto. That’s all done via the Celsius app.
That begs the question, how much interest can you earn? Well, rates are as high at 22.4% and 15.8% for stablecoins. Compare that to the rate you get at a bank and you’ll understand why so many people are flocking over to Celsius to put their funds to work.
However, to get that top interest rate you’ll have to get a rate boost from the Celsius reward program. To get that top rate you’ll need to hold over 15% of your balance in CEL tokens. The interesting thing about this VIP program is that it isn’t based on the amount of CEL you hold and only the ratio. That means that anyone can get that enhanced rate of interest!
Reward program perks also mean that borrowers can get a discount of up to 30% on borrowing fees.
When it comes to crypto loans, Celsius has a pretty reasonable $1,000 minimum loan and you can choose from a variety of LTV’s. With a LTV of 25% over a 6 month term, you’ll pay just 1% in interest. That interest rate can be slashed to just 0.7% if you pay in CEL.
So, how popular is Celsius? Well here are some stats:
► $8.2 billion loans processed
► 176K users
► $1.1 billion in community assets
🤔 Too Good To Be True? 🤔
Celsius interest rates are damn high. So how are they doing it?
Well, they claim to take the crypto deposited and lend it out to institutions and give the community 80% of those proceeds back as interest. The fancy term for that is called rehypothecation.
Watch my video to learn more about that!
🔒 Is Celsius Safe? 🔒
What Celsius is effectively doing is securities lending. That’s actually one the the safest businesses on Wall Street. That’s because loans are made with collateral.
The main reason why institutions like exchanges would want these types of loans is that they are dollar denominated – meaning they have dollars, but they trade in Bitcoin and they don’t want to take on the volatility risk of Bitcoin going up or down.
Celsius was stress tested on the 12th of March 2020 when BTC fell from $7.4k to $4.2k within 24 hours. Apparently not a single institution was liquidated.
👨 Celsius Leadership 👨
Celsius co-founder Alex Mashinsky has founded two of NYC’s top 10 biggest venture-backed exits since the year 2000. So, this guy knows how to build billion dollar valuations.
💰 CEL Tokenomics 💰
Watch my video to get my thoughts on the tokenomics of CEL.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
#celcius #CEL #crypto #lending #bitcoin #blockchain