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But high yields may be sustainable given that borrowing is expensive.
with 200% collateral? I'm pretty sure they can. I don't know what's it's like in hte US, but in the eurozone, long term home loans are around 1% , and even short term consumer loans are between 1-3%
> It is possible for customers to take out USD stable coin loans from Celsius, under the condition that they provide a Bitcoin or Ethereum collateral of at least twice the value of the loan. How does one provide Bitcoin or Ethereum collateral? Wouldn't you have to give away your private key (maybe in escrow), or transfer coins to them?
You transfer the coins into a contract or a custodian account usually. But yes, they are locked up for the duration aka not yours anymore in the private key/wallet sense.
But high yields may be sustainable given that borrowing is expensive.
I sense it is a case of somebody close to the NFT or virtual world buying the asset and making out it is a great thing and then selling it on quickly.
Many a scam involves somebody from the group buying something so the unwilling feel like it safe.
As always, don't be left holding the baby.
We keep expecting crypto to die but then again, we still have antivirus software that is spyware (avast), a scammy vpn industry, and a thriving anti vax movement. No matter how absurd it is, it might stick around for a long time now
Is that the royal "we", or do you mean to include other people that may or may not share your opinion?
We keep expecting crypto to die but then again, we still have antivirus software that is spyware (avast), a scammy vpn industry, and a thriving anti vax movement. No matter how absurd it is, it might stick around for a long time now
Earlier quoted context omitted.
You transfer the coins into a contract or a custodian account usually. But yes, they are locked up for the duration aka not yours anymore in the private key/wallet sense.
Also in a legal sense. The Celsius user agreement explicitly states that you are giving your coins to Celsius: you have no legal claim to them, you’re relying on the goodwill of Celsius to return them… meaning if Celsius goes under, your collateral is gone.
Why wouldn't you just sell your coins at full value instead of using this "loan"?
We keep expecting crypto to die but then again, we still have antivirus software that is spyware (avast), a scammy vpn industry, and a thriving anti vax movement. No matter how absurd it is, it might stick around for a long time now
Is the smallest crypto lending company not a Ponzi scheme? If not, then all crypto lending companies are Ponzi schemes.