November 13, 2019 at 3:23 pm UTC · 2 min read
Celsius Network, a cryptocurrency lending platform, announced that it has surpassed $4.25 billion in loan origination. In a press release shared with CryptoSlate, the company said that it was a 93 percent increase from the $2.2 billion it recorded at the beginning of 2019.
The growth numbers sound very impressive but the liquidity of CEL token remains to be abysmally low.
Crypto lending is the fastest growing industry in the crypto market
Using cryptocurrencies as collateral for fiat loans isn’t a new idea, but few companies so far have been able to create a successful business that provides cryptocurrency loans. Nonetheless, there are many crypto lending platforms available, all of them competing for an equally small part of the market.
Back in April, a Bloomberg report showed that there has been a steady increase in the number of people using various cryptocurrencies as collateral to borrow money. The increased interest in crypto loans, however, has opened up Pandora’s box—a lack of oversight of the industry has enabled numerous bad actors and shady businesses to open up shop.
Many crypto lenders are often opaque about where or how they store a borrower’s digital currency, as well as the fees the platform charges, Bloomberg reported.
One of the bigger players in the space, Celsius Network, set out to challenge these industry standards with a transparent business model and an innovative approach to distributing loan interest.
“Celsius gives back 80% of loan interest to our depositors with no minimums, caps, fees or penalties,” the company’s CEO,