GoodBuy or GoodBye - Celsius Network

Today will be the first post in the series "GoodBuy or GoodBye?" regarding cryptocurrencies.

From time to time, I'll do a post on a cryptocurrency that may have the potential for long term gain. The token economics will be looked into.

It will be in your best interest to explore these posts as knowledge is power.

Celsius Network - Future of Loans?

$CEL Token Facts

Circulating: ~350,000,000
Total: 695,663,643.3779

Price: $0.106527 (as of post)
Market Cap (MC): $74,106,961

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$CEL Token Utility

• Reduce interest payments by 10-25%
• Increase interest received by 10-25%
• Use in CelPay transactions w/ 1-2% cashback via $CEL
• Improves priority while getting a loan (highest $CEL balance & HODL ratio)
• Top 100 holders will have other non-financial benefits

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Loyalty Rewards

Tiers for extra interests earned and loan interest reduction

Your loyalty level is determined by the ratio of CEL tokens to other coins in your wallet. Highest tier requires more than 10% of total wallet value to be in $CEL tokens.

For example, my recent post shows I have $285 in my wallet. To enjoy extra interests of 25%:
(1) opt-in to receive interests in $CEL, and
(2) have at least $28.51 (10% wallet) of $CEL in my wallet

This is ingenuous on a few levels.

Firstly, who doesn't want to earn more interests right?

Secondly, when cryptocurrencies become commonplace, their prices will likely skyrocket. Using my example, if $DASH doubles in price and $CEL also increases (but less than my wallet holdings), this means I have to purchase more $CEL to ensure my $CEL value remains above >10%.

Additionally, if I choose to reinvest the interests earned, I would also need to increase my $CEL holdings to top up the 10% ratio.

That's demand!

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Fair Value of $CEL

Relying on Celsius' website and an article published 2 weeks ago, we understand that Celsius has issued ~$1.2 billion in loans thus far.

Going by logic and being conservative, we estimate 80% of all loans would want to earn the highest tier of interests. Hence, at least $96 million worth of $CEL needs to be staked (0.8 x $1.2B x 0.1).

Assuming Celsius' circulating supply and current status ($1.2B loans) remain (ie. they stopped growing), the value of $CEL should be at least ~30% higher!

*(96-74)/74 = ~30% -> 74M is the MC as shown above

*The Celsius team agreed to not collect its tokens until six months after an exchange listing. We did this to assure the community of our true intent: to build the best product possible for our community with the goal of bringing crypto to the masses.

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Recent News

Celsius announced $CEL was to be listed on a top-3 exchange early May. And price pumped prior to that (see chart below). However, this did not materialize, as management cited tokens had to be compliant with regulations to appeal to the US markets. Hence, the delay. Unsurprisingly, price of $CEL plummeted.

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Note to Self

I would gladly pick up these discounted $CEL.

• overlooked this game-changing loan platform for the last few months
• currently a lender myself
• based on the fair valuation calculation, $CEL is undervalued

Verdict - GoodBuy

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Please feel free leave your comments below and let's explore the benefits together!

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Disclaimer:

This is my personal view. I am not a financial adviser nor affiliated to any investment advisory. Your decisions are yours and yours alone. Please Do Your Own Research (DYOR).

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