Alex Mashinsky, the founder of several notable startups such as Arbinet, VoiceSmart, GroundLink, and currently the CEO at the Celsius Network, an Ethereum-based lending platform, notes that Celsius is a member organization.
He explains during an interview featured on Bloxlive.tv that the company’s job is to represent “the best interests” of the platform’s community, which reportedly includes around 50,000 cryptocurrency holders.
Going on to compare Celsius’ services to other types of service providers, Mashinsky states:
“It’s kind of similar to how Costco [deals with] members of their warehouse buyers and so on.”
“What’s special about Celsius is that unlike DeFi (decentralized finance) or many of the exchanges, or even Nasdaq, [we aim to serve as] neutral players in the financial world. Celsius only represents the depositors or the people that loan us their coins. We always [aim to] represent their best interest. Our job is to extract as much in interest income from the institutions that we lend these coins to. So, we created this whole category, invented this category of interest income.”
“For the first time, people from all over the world could basically deposit their crypto-assets or now even tokenized gold, and other assets and earn yield that is sometimes a 100x more than what their bank pays them. For example, we’re paying over 8.5% on stablecoins where if you took the same dollars