How Crypto.com can learn from Celsius Network to become trustable again

How Crypto.com can learn from Celsius Network to become trustable again

By darren242 | Cryptaysia | 19 Oct 2020


So this is sort of a Part 2 from the article I wrote previously about my exit strategy on Crypto.com, but with better suggestions to improve the ecosystem of Crypto.com. As we all know, CRO price keeps crashing down and I'm also one of the victims where I have 10k of my CRO staked in the exchange with 3 months left, while having another 1k CRO staked for a Ruby Red to which I haven't been notified and received the card for almost two months despite the recent announcements of card issuance, while it's been locked for four months. To make sure I don't worry too much on how much money I'll lost, instead I'll give my view on how Celsius Network is doing a lot of the right things, that Crypto.com can learn and build their platform to make it better and more sustainable.

 

1) Weekly Live AMAs

This point has also been covered recently by scynthenoz, which was a worthwhile read and brought out a lot of points about how Crypto.com can improve from here. For this article, I'll focus solely on Celsius Network, because I've been using this platform for 3 months and I loved it. Scynthenoz also mentioned frequent AMAs and why this can solve tons of Crypto.com's issues right now. First, it gives the transparency and trust to the CRO holders where we can see the latest updates of where Crypto.com is heading and answers a lot of the questions that we've been facing especially with the card issuance date. Second, this can also lighten the burden of the customer support team to be answering a mountain of questions from the users because I understand that it's not easy to be giving full attention to troubleshoot every single customer's problems. In other words, having weekly AMAs can mostly solve the customer support issues by directly getting the answers from the CEO. What I like about Celsius Network is that they will always publish the weekly rates for every cryptocurrency in their platform via email before they deposit the interests to our accounts, and they will briefly talk about why they increase and decrease the rates in the AMAs, which gives the investors a piece of mind and able to better manage their portfolio. Kris does not need to have very long sessions like what Alex's (Celsius's CEO) did by talking about other news and stuff before going to the questions, Kris just needs to brief all the most important updates and answering the most frequent questions asked by investors. A maximum of one hour weekly should be enough to cover most of it.

2) Change the Rates Slowly

I remember the last time I first joined Celsius Network, I'm only earning 8.69% APY on my stablecoins for quite some time before bumping it up to 11.55% currently if earned-in-Kind while still keeping at that rate. In the AMAs, Alex also mentioned that they did this because they have a lot of demand to borrow the coins so he has to raise up the rates so that more depositors can join the platform and Celsius can start lending out these tokens without any issues. This is the example of sustainability, increase and decrease the rates according to the supply and demand. A 3% increase on stablecoins or even the 4% increase on Ethereum like what Celsius did are sustainable for me IMO while a decrease of CRO from the highest 18% to 6% (a whopping difference of 12%) showed a lack of detailed financial planning. Also mentioned in my part 1 of the article, Crypto.com can slowly decrease the rates from 18%, 16%, 14% and so on and down to 6%, while updating these rates in the AMA and emails frequently to gives us investors the readiness to make their own decisions. Crypto.com's dirty trick is to always drop the biggest and baddest news, let all the investors to whine, hate and quit the platform, before dropping an AMA to apologize and make up with something nice for the investors to be somewhat happy. I forgave them for the MCO-CRO swap because I never invested it before and didn't think of the token to be useful (I mentioned this in my very early articles too). To do this for the second time with the CRO and the huge negative side effect, I'm more or less done with this type of management. 

3) Perfecting One Product is Better Than Focusing On Multiple Products

Credits to Crypto.com for being ambitious in growing their platform to be the best CeFi projects in the cryptocurrency world alongside Binance. I understand that adding DeFi Swap and Supercharger to the list are good for giving multiple options for the investors to choose to grow their wealth, which is also an advantage compared to Celsius. Even so, it's not good that the fundamentals such as Crypto Earn and CRO card services are being affected. Celsius's best feature is their lending services at low interests and pay depositors with high interests, and they are planning to add more features to supplement the user experiences such as CelSwap, Proof-of-Community, upcoming web platform and partnering with other exchanges such as Bitfinex to utilizes Celsius's platform. All these positive updates propel the CEL price to the moon. On the other hand, Crypto.com has been focusing too much on giving tons of services, catering for the more technical investors while taking away the best benefits that the average or amateur crypto investor can earn. Then, the card issuance services suffer, while other user experiences that I would love such as tracking my crypto portfolio performances are overlooked. In the future, maybe they might also remove the card features by decreasing the cashback rates to focus more on sustaining the DeFi Swap and Supercharger. Perfecting the fundamentals of what Crypto.com stands for first is key to retain the current and future investors, and then when all of these issues are 99% solved and sustainable enough, they can proceed with providing different types of services. 

 

Overall, I'm done with ranting about Crypto.com. You can promote their great products all you want, but it takes a great organization to execute these great products properly. No matter what "scripted" answers they are planning to say in the Wednesday's AMA, understand that we've been in this situation. Twice. It's basically a lose-lose situation for us and Crypto.com, and we both are going to lose more if these issues are not addressed. Alex Mashinsky had mentioned in his AMAs many times, that he wants to help the community to grow their wealth and would love other CeFi platforms to follow suit, which means they are very much welcome competition, and this is also why I admired Celsius, for continuously improving the right things while leading the competition currently. Crypto.com can be leader in this too if they follow the right steps to improve their services. I'm still yet to receive the CRO card and would love to use it one day for the perks. As much as I want to stay in this platform, their dirty tricks again and again have made me lost their trust completely. All these suggestions are in the hopes that Crypto.com will implement these right things, so that the CRO token can be stabilized further while giving me a third chance to not quit fully on this platform because of the card features. However, I would be quitting the exchange when the staking ends. I'm not going to deposit more until my card is here and I'm able to top up the amount I need for my daily spending.

 

Celsius's Referral link: https://celsiusnetwork.app.link/1587314a52 (Code: 1587314a52)


darren242
darren242

I'm Darren, from Malaysia. A nerd who is into cars and everything including Cryptocurrency and DeFi.


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Cryptocurrency experiences from a Malaysian perspective

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