P2P decentralised lending and borrowing platform Celsius has closed its ICO on $50m.
There were 325 million CEL tokens for sale during the ICO, which hit its hardcap, with a price of $0.30 each.
The Celsius wallet helps crypto holders earn interest on their tokens or access cash loans. Tokens in a user’s wallet are joined to the decentralised lending pool for the crypto community and helps users bag interest. Cash loans can also be taken out against the crypto tokens, allowing the holders to access capital without having to sell the coins.
In the future, Celsius hopes to allow CEL holders to lend cryptocurrencies to gain interest, and achieve a ‘seniority’ status on the platform, which will impact interest, according to the company.
Following the close, $20m will be put towards loan reserves, $6.4m will go towards operations and management, $5.9m is allocated for R&D, and another $10.8m is for legal, regulation, and general administrative tasks. Around $4m will be put in to sales and marketing efforts and the remaining $1.9m will be deployed to the lenders’ insurance pool.
According to Celsius’ roadmap, it will look to launch the first phase of its wallet app and expand its Al coins. Over time it hopes to introduce more of the top 20 cryptocurrencies to its wallet.
Earlier in the year, digital currency wallet Coinbase launched its Index Fund to support blockchain-based digital assets. The vehicle is open to US-based accredited investors, but is looking to launch other initiatives for other investor types.
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