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  • tell me about Celsius because I had standing Kulikov in here about two weeks ago in the studio.

  • Go figure actually in person Alex, I know you're gonna be here in London next week.

  • I know you guys are friends, but he obviously represents a V which is a leading protocol.

  • I had robert lesson on the show a week before that founder of compound.

  • Both of these were big players in the D five summer of 2020 but Celsius is something slightly different.

  • And I was wondering if you could explain what makes you different from a B and compound between the three of you, You probably represent a huge chunk of the lending and borrowing liquidity out there.

  • But what makes you different?

  • Yeah, So many people think that Celsius competes with these platforms were probably have the largest single user.

  • We're probably compounds largest single user.

  • And C really invented this whole idea of yield the first time anyone paid you yield on a token or coin was when C launched the service in 2018 before even defy existed.

  • So the defense is really a subset of Celsius because we earn yield from six different sources.

  • Only one of them is defying.

  • Right?

  • So, so for example, we have a mining operation, we are one of the largest miners in the world and that for us is just a source of yield when we create a Bitcoin, we have a factory for Bitcoins, we create a Bitcoin, we pay our community yield or interest in Bitcoin.

  • Uh that is obviously just a source, one independent source and that is nothing to do with defy when we land the liquidity to exchanges or two institutions that has nothing to do with defi and so on, so on.

  • So So we've created many different variety of yields.

  • And and uh because of that the the yield on C has been very very stable.

  • Like you mentioned before compared to defy where you you put your coins to work and you're so excited, they're earning 11% And you go get a coffee and you come back and it's 2% 5 minutes later.

  • So, uh so we've really created a very very sustainable utility where the markets on defy are are really priced minute by minute and represent very short term yields.

  • So, but I want to clarify that there is no competition.

  • I mean we're not really competing with each other.

  • We are both altogether competing for money that is sitting in most of the money in the world is still sitting with banks.

  • And what we're all competing for is to build the bridge or the highway between trade fire traditional finance and see find defy to bring all that money over and and customers, you know, people always asking Alex, yeah, maybe you want to fight against the phone companies.

  • But banks are even bigger than the phone companies, how are you going to win that fight?

  • You know, going from voice of I.

  • P.

  • Two money over I p more VoIP to my right and I always explain to people that banks to have zero power.

  • The only reason they have powers because we give them our deposits, we give them the money, they need to create all those profits.

  • If we stop giving them that money and we give it to somebody else, we will create a new king instead of the banking system.

  • We just need to make sure that this new king king is acting in our best interest.

  • And I can tell you that Celsius and Av and compound are all acting in your best interest that do not have a skin in the game of in company neutral.

  • Celsius is even better than neutral because if we're telling you that we're always putting the customer first, the customer, the person with the asset that means that we are actually representing you uh in your interest versus the borrower.

  • In most cases the borrower is an institution and if you go one on one against an institution nine out of 10 times you're gonna lose here.

  • Celsius aggregates 100 and 10,000 Bitcoin.

  • And now we have a huge chip right to negotiate with institutions because we have so much Bitcoin that we dictate the prices to them.

  • They don't dictate the rate to us.

  • And that's really why Celsius is better than almost any other platform.

  • What are some of these institutions that use you guys.

  • So there's about 350 institutions that basically transact in Bitcoin or in crypto there, the world's most famous names.

  • I I can't mention them here because they don't want anyone to know.

  • But tier one institutions do trade in in in the Krypton and they basically because of volatility in the market or in this industry, They can make easy money compared to effects or bonds or stocks where everything that squeezed out already over the last 30 years.

  • As you know from your career.

  • Uh the spreads used to be amazing, right?

  • You could make money by doing nothing today.

  • It's very, very difficult to extract that yield of value in any of those verticals in Bitcoin today while we're talking A theorem is up 10% today and the price of ethereum is different on 300 exchanges.

  • So with that kind of volatility institutions can borrow Bitcoin and stable coin from us, sell it on one exchange, bite on another exchange and grab 12% spread all day long, right?

  • So if they pay us 10% per year, they will make that in less than a month, what they pass in the year.

  • Right?

  • So that's why it's a win win relationship.

  • And people say to me, wait a second, these institutions have billions on the balance sheet.

  • Why do they need to borrow?

  • They can afford to buy probably all the Bitcoin in the world and explain to them that The institution doesn't want to take directional bets on the Bitcoin, they want to borrow one Bitcoin and return one Bitcoin.

  • If during that period of time, Bitcoin went down 10% or went up 10%.

  • That's not the exposure they want.

  • What they want is an exposure between exchanges, right?

  • The exposure that they need to basically do market making and capture delta uh through that activity.

  • So what C enables is effectively renting of the Bitcoin or the theorem that our community provided renting a million and a half teeth to the institutions to do their activity while our customers, the old Hodler's, right, All of our customers are Hodler's and they want to keep it for several years.

  • They can just collect rent.

  • In the meantime, it's the same business you do when you own a building, You're gonna own the building for 20 years.

  • But in the meantime you want to rent it out so you can collect rent while you're waiting for the value of that building to increase.

  • Uh huh.

tell me about Celsius because I had standing Kulikov in here about two weeks ago in the studio.

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This Is About All The Money In The World ? Alex Mashinsky On Why Banks Hold Power

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    林宜悉 posted on 2021/10/22
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