Celsius Networks is an Israeli startup – and a unicorn — that deals with cryptocurrencies like Bitcoin. This month, Celsius Network completed a $400 million investment led by WestCap, a growth equity firm, and Caisse de dépôt et placement du Québec (CDPQ), a global investment group. The raise gave Clesius a valuation of more than $3 billion.
The company says that its platform offers services that have been abandoned by traditional banks. These include “fair” interest, no fees, and speedy transactions.
Celsius Networks boasts over 1 million users that the company says earn up to 17% yield on their crypto investments. Celsius says that users get paid new coins every week and borrow cash at 1%, while allowing people to borrow, and transfer with no fees.
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“Our goal is to disrupt the financial industry, one happy user at a time, and introduce financial freedom through crypto.”
Celsius recently reported that as of October 8, 2021, total assets crossed the $25 billion threshold – including more than 1 million customers registered with the platform – having paid more than $850 million in interest to users through its Earn product in just over three years.
“We are pleased by the response we received from many leading financial investors during this fundraise. The partnership with WestCap and CDPQ puts Celsius in a position to grow and further its mission to leverage blockchain technology to connect and decentralize the traditional finance,” said Alex Mashinsky, CEO of Celsius Network.
At Celsius, it’s no tricks. Just treats. ???? Earn up to 17% APY on your coins, with rewards paid out weekly – no minimum balance required, no hidden fees, and no lockup period. ???? Happy #CelsiusPayday, Celsians – let the gourd times roll! pic.twitter.com/RLAUfhsG8g
— Celsius (@CelsiusNetwork) October 25, 2021
But there is a hitch. New York Attorney General Letitia James is going after crypto firms and recently sent cease and desist orders to two for alleged illegitimate practices.
Some claimed that Celsius Networks was itself a target of such investigations and so the company felt the need to defend itself in a blog post. “Celsius has not received a cease and desist order in NY. Celsius is working closely with regulators,” it said. “Regulation is vital to Celsius’ continued success and growth, and to the cryptocurrencies space as a whole.
The company talked about “chaos” that certain social media postings about its regulatory status have cause. Celsius dismissed all of this as fake news. The firm, while acknowledging that there is no formal regulation, as of yet, over the cryptocurrency markets, declared that it cooperates with legislators when they inquire as to their activities.
Celsius Networks also promised that, “If any regulatory or technical changes are required in a specific jurisdiction, Celsius will provide clear and timely communication as needed,”