Celsius Network Reached A New Peak
Celsius Network reached new peak which is $4.25 billion in total crypto loan origination, they announced. The mark was hit on the 12th of November and it was shared almost instantly with the crypto community. The amount of $4.25 billion was hit for the first time since Celsius started working in the industry in 2018th. It is almost 94% increase in comparison to the mentioned $2.2 billion this August.
A Network, Growing Fast
The company announces that it is working with something about 50,000 users from over 150 countries. Another point of being proud for Celsius is that fact that they have $450 million in customer deposits and collateral from loans under management. Comparing the figures, it becomes clear that it is almost double increase from the sum $300 million, which was reported this August.
In addition, the platform says it had paid its users $5 million in interest payments. If start comparing again it turns out that this will be 67% more than the amount mentioned in the August report.
Cons of Celsius Network Quick Development
Nascent cryptocurrency lending industry is experiencing a rapid growing at the moment. More and more people get acquainted with the concept of Cryptocurrencies and it leads to certain consequences. As a result the figures presented above became possible.
Genesis Capital says that Celsius Network has added $870 million in new originations during the third quarter of this year. It is much more than in the previous one, so it can be said that Celsius Network reached a new peak as a result of the situation in the industry in general.
Still the regulation of the industry remains an open question. Basel Committee on Banking Supervision is working on this matter at the moment. They try to figure out much capital lenders should hold in case it will be needed to cover the risks. They are talking about the ones created by operations with cryptocurrencies.
However such a rapid growth of the industry and its increasing number of the customers put a bunch of new issues to be solved. The authorities as well as for the casual users will feel the impact. Regulation is just one of them while another ones are just not that vivid at the moment. As far Celsius Network is the only example, it is difficult to make forecasts and analytics.