Celsius Network Progress Report (Free) 📈

HODLer's Den By Aromatic (Free Version)

Oct 20, 2020

Disclaimer: Nothing in this report constitutes investment advice—I am just reporting on my accounts and its progress on each platform. You should not use this report to make financial decisions. I recommend you seek professional advice from someone who is authorized to provide investment advice.

Hey everyone and welcome to the HODLer’s Den!

Here you will find information on my crypto investment portfolio straight from a HODLer’s perspective. This section will focus on HODLing cryptos and interest-earning platforms.

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Celsius Network

CEL Token

The Celsius Network Token, CEL, has been doing phenomenal in the past 4 weeks with its price hitting an all-time high of 1.46 USD. As the price of CEL reaches 1.5 USD, the community and investors are worried about a massive dumping of CEL tokens due to the price target which enables employees to access their share of locked CEL. The good news is that employees have an incentive to continue to lock up their share of CEL to gain a bonus depending on the lock up period.

The following condition must be met before the employees’ share of CEL unlocks: the price of CEL must stay at or above 1.5 USD for at least 10 days. Remember that these CEL tokens are already set aside and will not affect the total supply of CEL.

According to Mashinsky, the entire process will be completely transparent to the community and that almost the entire team has agreed to lock up their share for at least one year. I love that the team shares the same vision with the community and want what is best for the community. You can always check the status and history of CEL at Celsians.com.

CEL is currently performing 10 times better than Bitcoin (BTC) and that is thanks to the Fly Wheel Model. If you are able to earn in CEL or you have been earning in CEL, your portfolio should be looking amazing. The best combination, according to Mashinsky, is to hold your favorite assets such as BTC or Ethereum (ETH) while earning a yield in CEL.

Regardless of the situation, holding crypto benefits you immensely. With Celsius Network (CN) paying a record-breaking 1 million USD in interest every week, minting 32 millionaires, and managing over 1.5 billion USD of assets, it is the best place to hold your crypto assets.

CEL Swap

In following the footsteps of Uniswap, CN hopes to release its own version called CEL Swap to help the community buy and sell coins while interacting with a Decentralized Finance (DeFi) protocol. CEL Swap will also give CEL more utility and the hope is that it will steal liquidity from traditional financial systems, other Centralized Finance (CeFi) platforms, and banks.

To stay in line with its vision, CN plans on charging less fees compared to Uniswap so that the community can get more bang for their buck when they use CEL Swap. Even though this will result in less profits going to CEL holders, it will attract more users to the robust CEL ecosystem.

“Dirty” Money

The Celsius Network mantra is to “First do good and then do well.” It is a very unique model that is hard to achieve, but CN has stuck to it the entire time. The Forbes 400 lists the top wealthiest Americans and their corresponding companies. According to Mashinsky, these companies are the pillars of the American economy, however, most of them made their wealth by harming the planet or producing things that are hurting people. There are very few people/companies on the list that did good or created a lot of good for people. The main point is that it is much harder to “do good then do well.”

Source: Forbes 400

When it comes to crypto adoption, the main counter argument is that it will be used for criminal activities and money laundering. While it is plausible, it seems that banks have been doing exactly that for some time with little consequences.

Source: CNBC

Deutsche Bank reported 1.3 trillion USD of suspicious transactions according to an internal investigation. These transactions could possibly be money laundering or other criminal activity.

In total, both JP Morgan Chase Bank and Deutsche Bank reported more than 2 trillion USD in suspicious transactions. And according to the report this is just a tiny fraction of reports filed—you can imagine all the other unreported activities that go on without the public’s knowledge.

The current market cap of crypto is roughly 300 billion USD and if we assume 10% of it is used for “illegal” activities, that amounts to 30 billion USD—a lot less than what the banks have been reported for doing in the last decade by a magnitude of 66 times. So if people pull the “nefarious activity” card as a reason against crypto adoption, then you can refer them to the article above because banks have been doing it for quite some time with little or few consequences.

Unbank Yourself

There is good reason to start “unbanking” yourself given that banks have created the perfect system to extract money from the poor and to give it those who are already rich. Banks make money from credit card fees, withdrawal fees, ATM fees, and other fees. All the fees paid go directly to shareholders and not those who deposit money and use the banks.

Celsius Network has reinvented this business model so that most of the money and interest generated is given back to the community—those who use and support the platform. It is one of the only platform with little to no fees at all: no origination fee, no withdrawal fee, no transaction fee, no liquidation fee, and the lowest fees on ACH (Automated Clearing House) and SEPA (Single Euro Payments Area). This is made possible because CN makes money deploying the community’s coins and putting them to work.

It has been mentioned countless times in almost all the AMAs (Ask Me Anything) that everyone should start investing in non-correlated assets such as BTC, CEL, ETH, and gold. But another way to “unbank” yourself is to stop spending money we do not have via credit cards or taking out massive loans. Instead, we should be investing that money into platforms like Celsius Network to let that money work for you.

The current solution to all problems is to print more money and with all the events occurring in 2020, money has flooded the market in record amounts. Again, this is a good reason to allocate your portfolio into non-correlate assets. Many things depreciate in value so focus on investing in things that appreciate over time like crypto—according to Mashinsky, BTC is up over 9 million percent over the last 10 years. This is not financial advice and everyone needs to make their own decisions.

Pay Off Debts

If you have any debts with high interest, you should consider taking a loan out on CEL or BTC through Celsius Network so that you can pay down those debt, or even better, clear those debt completely. Another route is to take advantage of the current CEL price and cash out a bit of profits to pay off any debts.

It does not make sense to be paying credit card fees at an interest rate of 20% or more even if you are earning 10% interest on Celsius Network. In this scenario, all your earnings from CN will go directly to banks and we want to avoid that situation. Once you pay off your debts, you can put your money to work on interest-earning platforms like CN.

The new minimum loan amount on Celsius Network has been lowered to 500 USD. If you are able to take a loan through CN or have been considering taking out one, you can take advantage of the current promo code “TREAT50” to get a bonus 50 USD.

US Regulation

If you are an American investor using Celsius Network, I completely feel your pain when it comes to not being able to earn interest in CEL—only in kind. I think in almost all the AMAs, there was always a question regarding US customers being able to earn in CEL and the response had always been the same: it will remain this way until regulations and laws permit US customers to earn in CEL.

Mashinsky said that it is better to be safe and protect the entire Celsius community rather than risking the entire platform. Celsius Network is not like JP Morgan or Deutsche Bank; if it gets fine or caught for being non-compliant the government would shut CN down entirely. Currently, regulators are weeding out all the bad actors in crypto and removing them—BitMex is a good example. This is good progress for crypto because once the bad actors are removed, the public will become more confident with adoption.

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 1678 USD. The price of CEL increased exceptionally and that is reflected in my Total Earnings. 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 24% in 4 weeks and I could not be happier with my investment portfolio!

BTC is currently at 11.4k USD and ETH is at 376 USD as of writing this report.

Conclusion & Prospect

Celsius Network is performing phenomenally well and that is reflected in the price of CEL and it is hitting all time highs of 1.46 USD. I am glad to be an investor in CEL from the beginning and I regret not investing a lot more. Of course, hindsight is always 20/20 and I will not dwell on it for too long.

Like I mentioned in my previous Celsius Network report, the platform is doing everything right and in the best interest of the community. I have a feeling that many users will be migrating back to CN with the recent updates on interest rates and the booming CEL price.

According to Mashinsky, Celsius Network is the only profitable company in the business. They have accumulated plenty of money for a rainy day fund so that they can survive through the worst-case scenario. I am extremely bullish on Celsius Network and CEL with each AMA, and I will continue to HODL and watch my portfolio grow with the platform’s success.

What I Am Doing

This section is dedicated to paid subscribers as I will go into details of what moves I am making with my interest-earning portfolios.

Each week I will report on a different interest-earning platform that I use—mainly, Celsius Network, Bitrue, Crypto.com, and BlockFi.

If you do not have an account with Celsius Network and would like to support my work, please use this referral link to sign up and earn $20 in BTC with your first deposit of $200 or more! Much is appreciated!

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