Lender Celsius is a cryptocurrency with the potential to become a bank.
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Approximate Market Cap: $1 billion
Year Established: 2018
Cost Per Transaction: Nominal
2020 Return: 3,717%
Score: ★★★★
In 2018, Celsius Network crowdfunded $20 million to create a cryptocurrency lending platform. Since then, the network has written $6.2 billion in loans and produced $11 million in interest income, making it more like a bank than a currency. And by registering as an exempt issuer with the U.S. Securities and Exchange Commission (SEC), Celsius has soared even as other regulatory related currencies like XRP have struggled. In fact, its 2020 return was one of the highest of any other coin.
Still, Celsius has plenty of risk for potential investors. As companies from Bear Stearns to Lehman Brothers found, bad loans can quickly threaten the stability of an entire lending operation. And the Celsius Network has raised red flags in the past, particularly with its unclear collateral requirements. In other words, Celsius could also blow up like a bank if they don’t have the right controls in place.
Nevertheless, CEL could still continue to rise. It’s one of the largest pure-play P2P lenders in the crypto space, making it a cryptocurrency to watch in 2021.