Celsius Network raises $20.2 million in crowdfunding

The Celsius Network cryptocurrency lending service raised the amount attracted in the crowdfunding campaign to $20.2 million. Financing via the BankToTheFuture platform was provided by 1,006 investors.

📢 CLOSING SOON: $20,199,924+ Raised. 1006+ investors. @CelsiusNetwork open for qualifying investors on @BankToTheFuture — https://t.co/WkFhIBnq1M pic.twitter.com/Sw8xXMjmiy

— BnkToTheFuture (@BankToTheFuture) August 27, 2020

The amount raised turned out to be twice the initially stated target of $10 million. In late July, the target was revised to $17 million, but by that time Celsius Network had already raised $18.8 million.

According to the founder of the service, the current extension of the crowdfunding campaign became ‘final’. In its first day in June, the project raised $10.7 million from 39 investors. To reach more than $20 million, another 44 days were needed.

We decided to reopen ⁦@BankToTheFuture⁩ to all investors who missed out and we just topped $20,000,000 and are 18 investors away from hitting 1000 Celsians as ⁦@CelsiusNetwork⁩ equity investors. Two days left before doors close forever. pic.twitter.com/1SNDpkAwDM

— Alex Mashinsky ©️ (@Mashinsky) August 25, 2020

The crowdfunding campaign raised suspicion that Celsius Network was facing serious financial difficulties. The head of The Block’s research division, Larry Cermak, in July advised users on the platform to exercise caution. And the founder of competing service Compound, in a Twitter spat with Mashinsky, drew attention to the opacity of Celsius’s custody of funds.

In response, the Celsius founder noted that the company’s accounts hold more than $150 million in CEL tokens. He added that such speculation is unfounded in light of a $10 million investment by the issuer, Tether.

Simultaneously with the crowdfunding extension, Celsius Network announced a raise in the annual percentage yield (APY) on 12 stablecoins to 11.55%–15.89%. Holders of the native token can push this figure further to above 35%.

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