Victor Ugochukwu · Dec 14, 2020 . 5min read
Blockchain-based Celsius Network Raises $20.17M from 1000 investors by Crowdfunding
Celsius (CEL) Network, has raised $20.17 million from more than 1,000 investors, through its extended equity crowdfunding.
By Komal Joshi · Aug 27, 2020 . 5min read
Celsius (CEL) Network, a blockchain-based lending platform, has raised $20.17 million from more than 1,000 investors. It still has one day to go in its currently extended crowdfunding offering. The most recent expansion transpired long after crossing the $17 million’ target’, substantially increased from the original $10 million to $15 million targets.
Initially, the Celsius network hoped to raise $10 million on the private equity crowdfunding platform BankToTheFuture. Still, the offering proved so prosperous that it was extended several times, with targets increasing from $15 million to $17 million. Indeed on its first day, it raised $10.7 million from 39 investors. However, it then took an additional 44 days to raise the next $10 million. It appeared that Tether had tipped in $10M. On August 21, there was an announcement about the latest extension to Celsius’ crowdfunding. In the past 24 hours, a further $171,000 in investment from 20 new participants was leaned in.
Celsius Network under Financial Trouble?
Despite the apparent popularity of its crowdfunding campaign, there are unsubstantiated rumours of financial difficulties. The Block’s Larry Cermak claimed that the funding round involved an urgent effort to keep the company floating:
“There is a story in there for why Celsius raised so abruptly last month. We got several tips that they were very close to shutting down. 100% agree with you on the lack of transparency, I would be cautious about using them”
However, responding to this speculation, Mashinsky emphasized that the Celsius treasury currently holds over $150 million in assets, and has over $1.1 billion in coins on the platform. This evidences the company is not in financial trouble. The company’s primary income source is via retail and institutional lending, with up to 80% of all revenue given back to the community. London based-Celsius network also has offices in New York, New Jersey, and Tel Aviv.
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