This progress report will focus mainly on the recent AMA (Ask Me Anything) with Alex Mashinsky on July 24th, 2020. I pulled out some information—which I think is important—and summarized them in this article in additional to my interest-earning report.
First off is the integration of banks with the Celsius Network (CN) platform. Users are now able to connect or link a bank account directly to CN for easy transaction of funds via ACH (Automated Clearing House) for users in the United States and SEPA (Single Euro Payments Area) for users in Europe. This is huge because users can now move funds directly onto CN and then convert funds into the supported assets on the platform rather than buying from an exchange and moving it onto CN. Of course, each country must still follow its own restrictions and regulations regarding cryptos. Just open the Celsius Network app and see which assets you are able to purchase. They are currently trying to reduce fees associated with converting assets, but the main goal was to get the product out as soon as possible.
Celsius Network enters the Australia market—the 4th largest market for CN per Alex. This is great news as it spreads and promotes crypto adoption. As with every country, they are applying for licenses and registration and I wish them the best of luck.
Transparency & Model
A strong point of Celsius Network is how transparent they are. According to Alex, you can visit their Twitter page each week to determine how much CN pays out every week. Celsius Network uses the Flywheel Model seen below. It is a cycle of steps that ultimately benefits HODLers because as the community grows, so will the interest rates. As you can see, each cycle through the wheel contains two steps for distribution to members so it is great for HODLers like myself.
You can visit Celsians.com where you can find information reported about Celsius Network from an outside auditor. There is plenty of information of the website including fluctuations of interest rates, community growth, locations of stored CEL tokens, and much more. It is a great place to keep track of CN and if you combine it with the Top 100 CEL holders, you get an overall picture that CEL is being accumulated and HODLed.
From the website, you can see that there is still a majority of CEL locked up. According to Alex, the locked up CEL serves as motivation and incentive for the Celsius Network team. An allocated 25 million CEL tokens will be released to CEL employees once the price of CEL hits a target of 1.5 USD. This was built in from the beginning when CN was created and so far CN has retained a loyal team. Doing the math, that is a pool of 37.5 million USD to be distributed—I can understand how the CEL team can stay motivated to increase CEL price.
Regulation & Compliance
Celsius Network claims to follow all regulations and remains a compliant platform by actively applying for licenses and registrations. The crypto space is nascent and is a relatively new frontier, making it challenging and difficult to apply traditional rules and regulations upon it. Many regulators believe that most cryptos are related to criminal activity and hence platforms need to prove AML (Anti-Money Laundering) tactics and also why Celsius Network requires KYC (Know Your Customer).
Basically, the AMA stressed the importance of compliance and meeting each country’s regulations. The process is vigorous and intense because they have to correctly report everything in detail. Celsius Network strives to be legal, compliant, and global with the mindset of doing so in the best interest of its users. By staying compliant and well regulated, CN hopes to build trust which they hope will bring crypto adoption at a faster rate.
It has been 4 weeks since my last report on Celsius Network earnings and during that time my account has earned an additional 519 USD—not bad at all. However, remember that the market is up quite a bit since then and this does affect the Total Interest Earned calculation. 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 10% in just 4 weeks time.
A huge chunk of my portfolio comes from buying CEL at a low price and HODLing. The gains I have made from HODLing CEL really paid off. Since the previous writeup for Celsius Network, the price have been holding steady around 0.4 to 0.5 USD per CEL.
Conclusion & Prospect
After listening to the recent AMA, I am glad I have a decent position in CEL tokens. If the incentive for employees are true, the target price of 1.5 USD will bring massive wealth to CEL HODLers! Due to regulations in the United States (US), I am unable to earn in CEL which is unfortunate because I would be at the Platinum Tier on Celsius Network.
Out of all the interest-earning platforms I use, I consider Celsius Network to be the most secure, compliant, and transparent platform.
For now, I am still happy with Celsius Network and holding a decent chunk of CEL tokens. Alex and the CN team seems to be very aggressively promoting the platform while maintaining compliance. Hopefully adoption for crypto arrives sooner and we see less restrictions so that users worldwide can earn interest in CEL.
If you have not done so already, there is an active promo code for Celsius Network—not sure when it will end. Enter “SUMMER”: Deposit 200 USD worth of crypto and earn 20 USD worth of BTC when you hold it for 30 days. You are basically earning 10% on your deposit in just a month so I recommend you take advantage of the offer.