Celsius Back and Ready to Redistribute CEL Tokens After a Brief Suspension
After a month and a half-long suspension, Celsius is back to full operations in the US. The global crypto lending startup has reportedly reinstated its native token, ending the long absence.
Celsius Network, a platform founded on the promise of “the lowest interest rates on loans,” is intended to share as much as 80% of all revenues with the participants.
According to the startup’s Chief Compliance Officer, Jeremie Beaudry, they are now free to reintroduce their native token to the US crypto community.
Distribution Halted out of Security Concerns
The Network chose to suspend the asset’s distribution as a precautionary measure. The company whose March 2018 CEL token sale helped raise $50 million, was unsure about the state of security of the nascent tokens. It thus sent a lengthy email explaining the decision to all Celsius members.
The message emailed to the subscribers indicated that the decision had been prompted by concerns “from legal counsel.” The startup, however, didn’t indicate the length of the suspension, leaving many with questions.
Speaking in an interview, Jeremie Beaudry said the problem was with their approach, saying they had used “a machete rather than a scalpel.” But from the sentiments of the newly appointed Chief Compliance Officer, The Block is now secure and free for redistribution. Beaudry said that a team of outside legal experts gave the process a nod, signaling the start of the distribution.
Celsius Is Optimistic About the Token's Adoption
Celsius Network was founded in 2018 but reportedly has over 10,000 user accounts already. The lender mainly generates revenue from the interest earned from the crypto lent. The ICO was a huge success because of the promise of reduced rates of interest on the CEL compared to non-CEL deposits.
According to the Chief Compliance Officer, however, the redistribution will ultimately see the token’s overall adoption rate across the US increase.
The coin has all the reason to grow its userbase, especially because roughly 40% of its buyers are from North America. Once the token gets into circulation, there’s no doubt many will benefit from the 6.7% interest rate earned from their crypto deposits.