BitGo receives $1 billion in deposits from Celsisu, CEL tokens look positive


Celsius, the company offering CEL tokens, has deposited around $1 billion with BitGo as deposits.

The 2017’s initial coin offering (ICO) craze was the big boom that the industry needed after years of obscurity. However, it was also mired in many controversies since many scams were involved, and most didn’t deliver any useful product.

Nonetheless, not everything went down the drain! Celsius, a NY based startup that racked up more than fifty million dollars ($50) in May 2018 is showing positive signs of growth.

The project involved the sale of CEL tokens which borrowers can earn as their interest payments. Alex Mashinsky, CEO of Celsius, mentions that almost ten and a half thousand (10,415) users have availed loans based on fiat by keeping the CEL tokens as collateral. The mobile application of the company accepts DAI, Bitcoin, and many other prominent digital assets.

In the past year, loan volume has increased positively and supported the company through the downturn. CEL tokens, too, have faired well in terms of industry standards.

Looking forward to maximum returns from CEL tokens

In the past year, more than $1 billion has been deposited by the company in its custody accounts through BitGo. This is seen as a big step in the crypto realm these days.

The CEO further expects to increase the returns and the yield as well. The company has divided half of its operations equally among hedge funds and exchanges, thereby increasing security.

Bitfinex and Polychain are Celcius’s notable partners. Binance, the most prominent exchange, is also a loan partner of Celsius despite having its loan products. The loan market is saturated with over-collateralized loans that often extend beyond the one hundred and fifty percent (150%) limit.

Celsius loan details are sparsely disclosed

The clarity regarding the full details of the loans sanctioned by the company is sparse. Mashinsky says that the company primarily lends to various institutions as per appropriate rates.

The rates are usually dependent on the institution’s quality. There have been criticisms of the company regarding its loan disclosures, especially those about external parties.

As per the official word form the company, these disclosures are not made to prevent security and business-related risks.

According to Mashinsky, the company does not share this information due to potential business and security risks. Regardless of this, the company’s clients choose CEL tokens as interest payments.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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