I just logged into the Noisecash and Publish0x and I noticed that in my feed, everyone is in panic with the CEL. I thought about the various conditions that led to the downturn of this token. But today I want to talk about the variables that caused it. What made the tokens go down rapidly. What leads to the current condition?

NEXO and Celsius are like Time Bomb Interest Earners

Hold on! Before you hate me for saying this. Let's admit one fact that giving high percentage per month without having a strong collateral and that too non revenue generating one would make you wonder what is the source of their income and the future of these tokens? So these were like Cyclers or High Yield schemes from the start. Where you are going to hold the token or keep your other coins on collateral for earning some interest.

Who is giving them that much leverage? how they are planning on serving this for years? Eventually such questions being the skeptical questions would give you an idea that such type of the schemes unless backed by govt or some rich person feeding int the cash flow are going to crash. Sooner or later. Market downtimes are flags that such schemes die first.

You can now go back to hating me for saying the truth. But you know it's not the messenger you should shoot but the shoot the target.

Keep Emotions Out of Facts when Companies Freeze Your Funds

I know that most of you don't want NEXO and Celsius to become yet another fly by night type of the company. I am sure knowing the potential in the scheme even Celsius and NEXO don't want to run away during the market time. That's one the reason they froze your cryptos in their centralized space. Because they moved few points ahead and managed to keep you in dark before freezing the funds.

They are going to give technical reasons for this. But their hands are deep now that they will try to protect their funds so that the funds they burned by giving you monthly return they can atleast justify that on accounts. Don't be surprised with same excuse given by binance. But considering binance is now holding money of many mafias too, it would not go down overnight and may show more signs before it shuts the shop.

If you can see a lot of signs that leads to LUNA like crash of these companies, it's time not to defend them but keep your emotions out and focus on the facts. And the fact is that if market recovers or has any chance to recovers by the August these companies would make recovery too. Otherwise post August, you'd see them filing for the bankruptcy. 

Let's smell the coffee

Now that we have established the panic state and what are possible signs of such panic state. It'd be reasonable to say that in near future a lot of coins and the centralized exchanges or companies have chance to go down. On the brighter side if you invested for years then you very well know the truth behind high interest income based companies by now. It's pure gamble. If it works good, if it doesn't well we are seeing that now.

Now there will be sharks and whales who would fork another token out of any random blockchain and try to fish the crypto users. And then the drama goes on just like the LUNA. So if you look at the market right now, it is like cycler system, you add money and wait for another sucker to add money so that you can take your principal out.

So there you go. The drama for this week is Cel token and the rapid state of many such companies who give big interest with crypto as collateral. We are going to see the industry getting more changes from this point onwards. Now regulations will enter even more stronger because decentralization has sharks and whales too. They don't keep prisoners.

What's your take on the CEL token and NEXO? Do you think investing in these is still worth it?