Celcius Network recently passed $1 billion in deposits indicating a strong demand amongst the cryptocurrency community for ways to earn interest on their cryptocurrency.
The community largely consists of crypto enthusiasts who would rather HODL than spend their Bitcoin. This makes a strong use case for lenders who can bridge members of the cryptocurrency community to those who want to take out loans and an opportunity for lenders to earn interest.
Celsius has experienced impressive growth acquiring more than 110,000 lenders since its inception.
Celcius CEO Alex Mashinsky voiced that improving financial opportunity to the world is an important incentive to provide a lending platform:
Financial equality and economic opportunity are more important today than ever before. We are experiencing a catalyst that requires a fundamental change in the way we earn and distribute wealth, not only in the US but around the world.
It is unclear whether Celsius possesses sufficient reserves to reimburse all users who have assets on the platform. Celsius also faces competition with lending providers such as Blockfi, which has a growing amount of cryptocurrency being lent.