Tether (USDT) is investing $ 10 million in the Celsius Network (CEL) cryptocurrency lending platform. with a pre-money valuation of $ 120 million, which brings the post-money valuation to $ 150 million.
The company raised $ 30 million in its first round of capital. In 2018, Celsius completed an ICO of $ 50 million. Alex Mashinsky, CEO of Celsius, told Cointelegraph that his company continued its policy of not raising venture capital.
Investors will have no vote
Mashinsky also noted that the capital sold in this round is not voting. This ensures that investors cannot force the company to change its primary role of sharing 80% of the profit with the community. He believes that this sets Celsius apart from the competition:
“I think, you [BlockFi] raised about $ 20 million to $ 30 [la valoración del dinero]. So they donated more than half. Now they are collecting another $ 30 [millones] at USD 60 [millones de valuación previa al dinero]. Basically, the founders own a very small percentage of the company, maybe 10% or less. And here we do not intentionally grant any of the investors a vote. So I’m still the biggest shareholder and then we have control over the company. Very important for us, so that the investors do not change: we give 80% back to the community. So I wanted to make sure no one came in and said, ‘Hey, you’re making a profit, why don’t you take it yourself, or why don’t you pay the dividends?’ “
Tether is not a toxic investor
Mashinsky doesn’t think Tether is a toxic investor. In her opinion, The market is the best judge, and since all lawsuits against the company have been filed, the USDT market cap has multiplied to nine::
“If you look at what the tokenization was when the lawsuits were filed and what it is now, it has increased nine times, it was $ 1 billion, now it is $ 9 billion. If there were concerns about not trusting Tether, investors would not [invirtiendo]””
Better than the competition
The CEO of Celsius also says that Tether, as such a dominant player, choosing your company for a strategic investment against the competition is an important confirmation:
“The important thing is that Tether is worth $ 9 billion. It is 90% of all stable coins that exist. The fact that they chose Celsius is very important because obviously they could have worked with anyone, they could have chosen BlockFi or Nexo or anyone. “
Regarding the question of why Celsius is collecting donations only two years after the successful ICO, he explained that additional capital is necessary if the company wants to achieve its ambitious goals:
“First you collect money when you can, not when you need it. And it was important that we have other strategic investors coming. Tether is not the only one, we have several associations. We want to see a fortune of several billion dollars, we want a billion gold, several billion bitcoin. These things require a lot of capital to expand the platform. “
Mashinsky also hinted that Celsius will “combine all the services of Tether and Bitfinex in the coming months”.
Cointelegraph contacted Tether for a comment but did not receive a response in time for publication.