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Celsius Network
Update
With the economy being ravaged by the corona virus, the United States Treasury continues to print money to bail out the US economy. This short-term and unsustainable solution to save the US economy is good, but will result in massive inflation. According to the Celsius Network AMA (Ask Me Anything), more money was printed in the last 6 months than in the entire US history—very troubling signs. At the same time Federal Chairman, Jerome Powell, publicly announced that inflation is good for the US economy. Inflation is never good for the people because your money decreases in value—you do not want to go to sleep and wake up with less money.
A giant storm is coming and will hit us in the form of a deep recession or depression. To hedge against the oncoming storm, one should allocate funds into non-correlated assets such as Bitcoin (BTC), gold, silver, and other assets not pegged to the US dollar. Everything that is denominated in US dollars will be affect by inflation—even stocks.
If you are still not convinced about reallocating some of your assets into non-dollar correlated assets, then hopefully billionaire Warren Buffet can convince you. Buffet recently sold millions worth of bank stocks and the message is clear: he no longer believes that banks will make money in the long run. Even though he gets paid dividends on holding bank stocks, the value of money will drop so much that he will end up losing money. Instead, Buffet started investing in gold and gold mining companies. For 50 years Buffet said to never bet against America, yet he recently invested 7 billion USD in Japan’s five biggest trading companies which earn in the Japanese Yen.
The bottomline is that you need to start separating yourself from the USD and put more of your funds into non-correlated assets in the same matter that Buffet is doing with his investments. Crypto is a great choice as it provides a fair chance for everyone. According to Mashinsky, even thought BTC is 11 years old, only about 45 million people use crypto. You are still early to the game so start investing in crypto because in crypto you are part of the 1 percent even if you get in right now.
Decentralized Finance (DeFi)
Mashinsky approves of Uniswap because it is a great representation of DeFi and what DeFi should be. He believes both CN and Uniswap share the same vision in that both platforms give back to its community by distributing the revenue they earn. The recent airdrop by Uniswap is just one example of rewarding its community members and users.
Celsius Network invented the two major building blocks for DeFi. The first one is that ability to earn interest on cryptos for HODLing—think of it as yielding interest by staking. The second one is the ability to earn interest in another form of money such as earning CEL for HODLing BTC—think of it as farming. These two aspects form the foundation for the DeFi mania that is currently happening.
With the DeFi boom, CN raised the rate on Ethereum (ETH) to 6.5% if you earn in kind or 8.77% if you are able to earn in CEL at the Platinum Tier. This new 6.5% on ETH is the highest rate between the four major interest-earning platforms that I use and there are only a few platforms that give a higher rate. If you want a more comprehensive list you can visit this Crypto Interest Rate Tracker spreadsheet, which is updated weekly, to help you determine where to park your coins to maximize your returns.
New Look
Celsius Network recently updated their website and their mobile app with a new look and new design. In addition, they have a new logo and new branding which are very pleasing to the eye. According to the AMA, most users approve of the new color scheme and overall design. Regardless of the aesthetic changes, I do notice an improvement in speed and smoother response time when using the app which is all I really care about.
Interest Earned
It has been 4 weeks since my last report on Celsius Network earnings and during that time my account has earned an additional 198 USD—not bad at all considering the market had a massive correction and pullback during the last 2 weeks. You can monitor this Google Sheet where I track all my earnings from a variety of platforms and it gives percent changes. According to the spreadsheet, my total earnings grew 3% in 4 weeks even during these tough times.
Conclusion & Prospect
Celsius Network is just killing it (and I regret not investing more into CEL). CEL is currently on a tear with an amazing run and is above 0.7 USD. Only a couple of weeks ago it was sitting at 0.4 USD. To have such a run during this massive pullback is a great feat on its own—clearly, Celsius Network is doing something right. According to Mashinsky, CEL is a limited supply token with slow release. This means that the supply is capped at roughly 695 million and CEL tokens are released into circulation at a slow rate. CN is the biggest buyer of CEL and holds a huge chunk of the total supply.
It seems like Celsius Network is becoming an apex predator and siphoning all the tokens back onto their platform with these new amazing rates which are the highest in the industry. This is a great example of competition benefitting the users as platforms compete for users via better rates. As a HODLer, I will move funds as necessary to maximize my earnings—the only downside is the time it takes to move funds due to congested networks but it is definitely worth it.
While many of CN’s competitors are burning through their cash reserves, CN remains the only profitable company according to the AMA. This is made possible via the unique Fly Wheel Model which just works. Unlike Binance, which gives back 20% of profits, Celsius Network is able to pay 80% of its revenue back to users—note the difference between revenue and profit. In addition, Mashinsky stated that CN makes about 6 to 8 million USD in revenue each month and still has left over money even after paying users and other operational costs.
Celsius Network is hoping to integrate a swap feature into the app which will allow users to swap tokens and coins for one another—basically, a built-in Uniswap right inside the app without the high fees associated with such transactions. In addition, CN is partnering with 3 major exchanges to list CEL and the first one is BitFront which has 20 times the volume of BINANCE according to Mashinsky.
Overall, my view of Celsius Network has changed from a moderate platform to a bullish perspective. Given the rise of CEL price during a market correction and the new partnerships and investments, CN is the best place for HODLing cryptos and earning interest. I hope US customers will have the ability to earn in CEL because it would be a great way to Dollar Cost Average into such a wonderful token. Even though this is not financial advice, remember to pay attention to what big investors are doing and not what they are saying—if Buffet is reallocating assets into non-correlated assets that are not denominated in dollars, then it would be wise to do the same.
Each week I will report on a different interest-earning platform that I use—mainly, Celsius Network, Bitrue, Crypto.com, and BlockFi
