Bitcoin Forum

I was betting on the project to get 500 fiat loan against my bitcoin assets, unfortunately Celsius raised the limit of the minimum loan from 500 to 10.000! Which is insane for me. Is this correct? Anyone else having this limits? If so, what do you think is the strategy behind this, get rid of low-wage loands and therefore clients?  ???

The volatility margin in cryptocurrencies during new ATH season has become large as Bitcoin can rise10k USD in less than a month.
AFAIK, Celsius Network make profits by lending coins to funds, exchanges, and other loans with 9% interest.
I don’t know, but it is stupid to borrow from an institution based on profiting from making loans to other parties.

Realizing profits is when price low, so the current time is the worst for getting a loan.

Thing is trading requires an active rol, its quite time consuming and stressing, hodling isn't. So if this is your profile and that your risk capacity, 4% APY and loans against those crypto assets that looks like a good option to me. Trading is a whole different game. 

My guess is this is to relieve some pressure on their back-office staff to prevent them from having to deal with things such as KYC and customer service inquires from small-dollar borrowers who are not generating much revenue. I would also suspect that the small-dollar borrowers tend to require more resources such as they tend to open more support tickets; this would further decrease the expected profit from these customers.

From what I have remembered Celsius Network have reduced their minimum loan value twice last year. One is during the wake of the coronavirus where it dropped from 3,000$ to 1,000$ and the second one in October where it dropped from 1,000$ to 500$ both drops in the minimum loan value is for their accessibility for a wider audience, now the question is why did they increased it back up? Maybe the true reason why they just decreased the minimum loan value is to get people using their service and drop is mainly used for marketing rather than anything else now that they have gathered a lot of promotion because of their decrease in loan value then they can riskily go back to the numbers where they used to be.

I did't know that! Now I see. That history definitely points to marketing reasons. In any case I found it a bit contradictory (to say the least) with their own "mission" stated as bringing fair banking back to the "people". With this values this seems to be (once again) just marketing vocabulary since i don't know what percentage of common people have 10.000 available to bet on crypto assets.