Cryptocurrencies

Celsius Network (CEL) raises $ 20 million from 1,000 investors – Cryptocurrencies

Last June, Celsius Network (CEL) reported to its community its presence on the Bank To the Future investment platform. The news was also followed by an announcement of a fundraising of $ 10 million to expand their products and improve the services offered. The campaign subsequently saw several extensions with target amounts of $ 15 million and then $ 17 million. After a final extension, it now seems that Celsius Network wants to be satisfied with the 20 million dollars raised from more than 1,000 investors.


Participation boosted by the announcement of an increase in income

It took 44 more days to see Celsius double the 10 million dollars initially set as the objective of this fundraising. Alex mashinsky -the founder and CEO of the platform- had indeed announced on Twitter extensions about the operation launched on Bank To The Future in June. Once the $ 20 million was reached, he said on the same channel as18 participants were still missing to reach the 1000 investor mark. To achieve this, the announcement said the community still had two days to come forward.

One day from the expiration of this period, 20 new investors contributed an additional $ 171,000 to the capital. This sudden participation would be precisely linked to another announcement made by Celsius Network. Indeed, the platform informed its community ofan increase in income which would now rise to 15.89%. Mr. Mashinsky Moreover, he expressed confidence in the success of the project, believing that “holders of stablecoins can earn thanks to the Celsius platform more than 100 times what a traditional bank could offer them “.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Extensions that would be motivated by financial difficulties

The many extensions that marked this fundraiser gave rise to rumors evoking the existence of financial difficulties at Celsius. This was notably the case Larry Cermak of The Block who argued that this was a move to improve the platform’s finances. He even went so far as to say that the company was close to closing according to several of his sources. According to him, there was clearly a lack of transparency regarding these different extensions.

Of course, Celsius did not fail to respond to these various accusations through its CEO. Mr. Mashinsky made it clear that the finances of Celsius were doing well and that she was with more than $ 150 million in assets. He also used as another argument the $ 10 million investment of Tether (USDT) as proof of the good financial health of the platform.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

For the moment, the various loans made on the platform constitute the main source of income for the company, which pays 80% of the interest obtained to its community. With the current fundraising round, Celsius Network should be able to launch other even more lucrative products. There is no doubt that the world of DeFi has not yet finished attracting and making people talk about it!

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