Crypto companies adopt classic financial products
The new companies that work with cryptocurrencies are rapidly developing the adoption of financial tools from traditional banks but at a much more competitive level.
According to a recent analysis published by the Deribit cryptocurrency exchange, there is rapid growth in the adoption, by cryptocurrency companies, of the known financial services of traditional finance.
One of the leading crypto-loan companies, Celsius, has recently started offering its users (excluding users in the United States and Japan) up to 8.1% interest rate for those bitcoin deposits that are at their level Highest of loyalty. The interest rate offered by Celsius is much higher than the rates offered by traditional banks.
According to Celsius CEO Alex Mashinsky, the reason why the yield offered is so high is that interest rates are paid on Celsius CEL token. In this regard, Mashinsky said: "To increase performance we wanted to do more than pay bitcoin with bitcoin, so we decided to pay in our CEL token. We also have a loyalty program with different levels to show how much interest users will receive. Basically, we are convincing people to join Celsius by paying them more."
Traditional banks are widely criticized for the expensive fees they charge their users. Initially, companies that offered to buy and sell cryptocurrencies also had very high exchange fees. However, many crypto companies have already started working on the solution to this problem. One of the best known is the digital money platform, Uphold.
JPThieriot, CEO of Uphold explained: "Cryptocurrencies were one of the most expensive asset classes to trade for retail investors, with commissions above 200 basis points on some major platforms. The goal here is to create something useful for people from all over the world and in the everyday context, as we differentiate ourselves from our competitors. Ultimately, the Internet of money is likely to evolve in ways in which banks have failed to do a good job."