Celsius borrows USDT directly from Tether under a facility that requires it to post bitcoin as collateral. Last month, Celsius banned unaccredited US investors - individuals with annual income of less than $200,000, or net worth of less than $1 million - from earning rewards on the company’s Earn platform.Ĭelsius shareholders include stablecoin issuer Tether, whose eponymous token, also known as USDT, was trading below its $1 peg earlier this month. This has come under scrutiny by regulators in some jurisdictions, who argue that such products should be registered as securities. “How we earn yields does not involve trading assets,” he told the Financial Times last year.Ĭelsius is one of several crypto businesses that offer customers interest on their digital assets, and boosts yields up to 18.6 percent. Mashinsky stressed that the company does not trade clients’ assets. A spokesperson for the company said it offers promotions regularly and there has been no change in its promotion strategy recently.Įarlier this week, Celsius also said that it had filed with US securities regulators to list its bitcoin mining subsidiary on the Wall Street equity markets.Īccording to UK accounts, Celsius generates revenue from “discretionary trading” of cryptocurrencies, including “speculative trading” on the price.
According to the accounts filed in the UK, the group is the largest holder of the token and includes it as an asset on its balance sheet.Īs part of its efforts to attract new client funds, the company on Tuesday launched a promotion offering clients rewards if they transfer assets to Celsius accounts and keep them there for 180 days. He said the company has billions of dollars in liquidity and is providing customers with the money they need.Ĭelsius’ own coin called the CEL is trading at just 80 cents, down from a peak of $8 in June 2021. Since March, net outflows have exceeded $1.1bn.Ī person familiar with the matter said that the decline in the asset on Celsius is primarily a reflection of falling prices in the crypto markets. I understand people trying to sell you competitive services are spreading these rumors but you have to trust us Post.Ĭelsius has maintained significant customer outflows in recent months, including $750 million between May 6 and May 14, according to weekly data released by the company.
He added that on Thursday the group had “minimal exposure” to the coin.įeather Celsius Network We have said publicly many times that we had the least risk $luna And $UST
With prices now falling, companies with billions of customer deposits like Celsius are faced with the challenge of navigating the downturn in the crypto market.Īlex Mashinsky, who founded and operates Celsius, tried to reassure customers this month when the collapse of a major stablecoin called TeraUSD, as well as its sister token Luna, shook confidence and pushed prices up in crypto markets. In recent years crypto lending has boomed in lockstep with the wider crypto market. Last year, it increased $750mn From investors including Cais de Depot et Placement du Québec, Canada’s second largest pension fund , The company is one of the biggest players in the crypto lending business and says it has 1.7 million customers. Crypto lender Celsius Network has suffered a 50 percent drop in the value of assets deposited on its platform this year, a sign of industry pressure in the wake of declining digital token prices.Ĭelsius, which borrows cryptocurrencies from its customers and lends them to earn returns, had only $12 billion in assets as of May 17, up from $24 billion at the end of December 2021, according to its website.
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