No, this is not a Ponzi scheme. Unlike Bitconnect - that promised 300%+ interest per year - we have a legitimate working business model that allows us to pay sustainable reward rates.
Reward payments are funded by our lending business.
This means that we lend out the coins users transfer to hedge funds, institutional traders and exchanges, among other corporate partners. These partners can deposit up to 150% collateral with us to secure the coins we lend them and they pay us interest on those loans.
We also lend dollars to our customers - with digital assets as collateral - and earn interest from those loans as well.
At Celsius, we aim to return up to 80% of the revenues made from lending out our community's assets back to our community on a weekly basis. Because the rate of returns we can achieve in the lending market change nearly every day, we adjust the rates that our community earns on their digital assets on a weekly basis.
That is why our reward calculation schedule is as follows:
- Reward accrual period: Friday 05:00:00 UTC to Friday 04:59:59 UTC.
- Reward calculation price snapshot: Friday 05:00:00 UTC
- Reward payment day: Monday, no set time.
For more information on how weekly rewards are calculated, please watch the video below.