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Author: Admin | 2025-04-27
And thought ‘If Celsius continues to increase assets under management and they continue to add users and continue to pay more interest, they’re going to need to buy more CEL tokens so the price will go up because Celsius is the largest buyer of CEL tokens out there.’ Just like JP Morgan is the largest buyer of JP Morgan stock.”He added, “That’s exactly what Wall Street does for the shareholder. Celsius is doing it for the community.”Roughly 36 percent of the CEL token supply is circulating, while the rest is locked up in its treasury, reserves or accounts held by its team/advisors.In our conversation, Mashinsky said that 90 percent of Celsius’ business comes from interest accounts. To generate revenue, the company employs a combination of rehypothecation (taking deposits and refinancing them on the open market), trading arbitrage and other techniques. Of the total revenue from these actions, Mashinsky claims, 80 percent goes back to paying depositors. BitLeagueThen there is BitLeague, a bitcoin savings platform that offers interest through a bitcoin term deposit product, which can vary from 3 to 36 months long. Interest is calculated based on an annual percentage rate, with a 12-month BTC deposit term netting customers 6.7 percent interest, a 24-month term netting 7.8 percent interest and a 36-month term netting 9 percent interest, all paid out in BTC.It also hosts a bitcoin exchange that doesn’t charge commission on purchases, presumably motivating users to then park their BTC in a term deposit account.“Our goal is always to encourage the adoption of bitcoin,” Yifeng Mao, the CEO of BitLeague, said when the company announced its commission-free trading. “And of course, after our clients get their bitcoin, we encourage them to invest in our Bitcoin Term Deposits.”BitLeague also offers customers loans on their cryptocurrency holdings. Users can enter the fiat amount they’re after and BitLeague will calculate a BTC collateral amount in kind, based on a 30 percent loan-to-value ratio (so, if you borrow $10,000, you will have to stake $3,000 worth of BTC). Borrowers will then agree to pay a calculated monthly interest rate and can purportedly get their fiat loan within 48 hours. The advantage for HODLers is that you can get fiat if needed without having to actually sell any BTC.To date, all of BitLeague’s services have been bitcoin-focused, but it is planning to launch a libra interest account soon, offering an expected 6 percent rate.Who’s Holding the Keys?Celsius, along with another cryptocurrency lending platform SALT (which doesn’t provide interest accounts), has taken flak for including a token in its business model. There are other obvious drawbacks to these services, including surrendering your keys to the companies providing them. Celsius claims on its website that users
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