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.
Circulating: ~350,000,000
Total: 695,663,643.3779
Price: $0.106527 (as of post)
Market Cap (MC): $74,106,961
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!
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!
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.
I would gladly pick up these discounted $CEL.
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).
