Startup Spotlight: How Celsius Network is Changing Perception of the Banking Business

Startup Spotlight: How Celsius Network is Changing Perception of the Banking Business

Since the creation of blockchain technology, the world has seen many revolutionary concepts come to life. In the last decade or so, lots of startups have challenged norms, changing the way we see different industries, and the world of business in general. A great example of a startup that has the potential to revolutionize banking emerged just a couple of years ago. Celsius is currently one of the biggest and most well-funded crypto startups in the space. Its raison d’etre is to establish a P2P (peer-to-peer) crypto lending platform, available to everyone around the world and allowing earnings on investments, lending of funds when needed and payments through blockchain technology.


Celsius Network. Image:

In 2017, the creators of Celsius – now CEO Alex Mashinsky and CFO Daniel Leon – drew the concept on a napkin and from there started working towards full-blown materialization. The project required initial funding, so they launched an ICO (Initial Coin Offering) in the spring of 2018. The first CEL token sale produced around $50 million, allowing Celsius to launch the first Celsius app that same year to kickstart the company and enable the full offering of their services.

Today, the amount of funding behind Celsius is mind boggling, for a recent startup. The company boasts of more than $300 million worth of total assets, $2.2 billion in total loan origination and an incredible 40K+ of active wallet users via the Celsius app. All this happened in just under two years of hard work on the part of the company’s team.



What is exciting about Celsius? It offers its customers an alternative to institutional banking and loan lending services, so that the general population gets all of the advantages of better financial options. The company grants financial services to the owners of cryptocurrencies all around the world through their P2P Lending system. The crypto wallets connected to Celsius get the benefit of earning interest and the lowest annual percentage rates on their loans. In short, Celsius enables users to earn, borrow, and pay the money back through blockchain technology. The company is supported by the BitGo wallet system and is covered by Lloyd’s insurance for $100 million. Another fact that works in the organization’s favor is that CEL has never been contacted, let alone investigated by any regulatory government body.  

Celsius is Already Changing Banking

The way traditional lending is done often works against, rather than for, their recipients. Banks usually pay depositors less than 1 percent in interest, yet lend clients’ deposits out to others at up to 25 percent annual interest, keeping over 90 percent of the value of these loans. At the same time, lending practices can be biased, with decisions cementing class disparities and further opening the gap between the rich and the poor. 


Looking at the statements made by the CEO of the enterprise, Alex Mashinsky, it is extremely clear just how this startup is planning to change the world of banking. Alex says that their main goal is to “unbank” the population, by providing a better alternative. The objective is to create a crypto-community where everything is done in the best interest of the customer. By allowing users to gain access to cryptocurrency loans that easily translate into dollars, Celsius gives back 80% of the generated income into the wallets of the depositors, in essence doing the very thing the banks should be doing on a daily basis. The growing demand for Celsius’ services is evident from the company’s rising income and the large community support they enjoy. Mashinsky attributes this to the fact that the startup is acting in the best interest of its customers.

Going Forward

We live in a world of blisteringly rapid change. Technology pioneers enabled us to go from being mesmerized by the idea of a wireless phone thirty years ago, to clearly seeing the possibility of investing into virtual currency. Looking at the current events unfolding across the startup world, it is easy to see how the world will be a completely different place in the next decade or so. It will become a place where banks no longer dominate the finance industry, with better alternatives available for all.  

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George Khmelevski