The Singapore based non-profit Litecoin Foundation, lead by Litecoin founder Charlie Lee, has invested an undisclosed portion of its capital with crypto lender and loan provider, Celsius, reports Coindesk. The move hopefully will open up another stream of revenue for the foundation with which to further support their operations.
Celsius was recently announced as a ‘title sponsor’ of the 2019 Litecoin Summit taking place next month in Las Vegas and it appears as part of the new relationship between the two the Foundation has also named Celsius as it’s ‘preferred crypto wallet’ with Celsius Network CEO Alex Mashinsk stating:
“Litecoin being the first foundation to work with us and endorse us is a real milestone. It’s a huge event,”
“That’s the first time I can say that the general community is recognizing Celsius for the utility it provides.”
Lee further echoed the words in his own statement:
“We’ve chosen Celsius as the LF’s preferred interest bearing wallet as we are always interested in helping LTC holders take advantage of new use cases for their holdings. What better way to show our confidence in the product than by allocating a portion of the LF’s treasury.”
Celsius raised $50m in 2018 with its ICO the CEL token, which is optional for its service but provides greater returns on investments through the platform. In 2019 Celsius grew to processing over $2bn in loans, and holding over $350m in customer funds that have seen $3.5m issued back from interest payments.
Furthermore, Crypto custodian BitGo, told Coindesk they have ~$1bn stored in ‘Celsius based crypto deposits’ in the past year. Holdings with Celcius can receive up-to 10% interest, according to the company’s website, however that value fluctuates with market conditions and is currently at ~5% for Litecoin.
The Foundation has been criticised, by some, for its spending figures and financials, however Lee remains firm that he will continue to support it into the future. It’s unclear if this partnership is one of the steps toward a more self sustainable foundation although Lee is open minded saying:
“As our relationship with Celsius evolves we are certainly open to exploring new opportunities.”