Celsius Network has just added Cardano to their list of coming soon crytocurrencies.
Why is this important?
Because Celsius has more than 6 million USD in assets from their users. So if they decide to putafraction of that into ADAin order to get a return, then less ADA will be available. Higher demand and lower supply would have a positive impact on ADA’s price.
What is Celsius?
It’s basically a platform that allows users to borrow cryptoand to get a yield basedon their cryptos.
Celsius aims to outperform banks at their own game by offering financial services on the kind of terms which traditional financial institutions no longer offer.
These include much higher rates of returns on savings and deposits, much easier and fairer loan requirements and automated rewards computed for each user algorithmically. Penalties and bank-style fees are also waived.
The platform also functions as a wallet via its CelPay feature, and hosts its own CEL token which users can leverage to increase payout value among other things.
As a for-profit company, Celsius takes a cut of profit margins on interest payments, still returning 80% to users themselves. The company also lends to institutional entities such as hedge funds.
Payments are ensured because loans are asset-backed, and any borrower must supply more than 100% of what they borrow in the destination currency.
This is what some users in the Cardano sub reddit had to say about it: