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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.
Celsius Network
Updates
Celsius Network (CN) partners with BNK to the Future to provide a Crypto Retirement Plan for the masses. Per Mashinsky, we can not longer depend on traditional retirement plans due to debasement of currency and that the retirement age might be pushed out as far as 80 or 90 years old.
Having a crypto retirement plan comes with plenty of financial perks like traditional retirement plans. You can sign up for news about the crypto retirement plan by clicking this link.
The Crypto Retirement Plan will contain 8 different menu options for allocating your funds. It is still be beta testing but ultimately it will give investors control over the allocation percentages such as a certain percent in BTC, ETH, stablecoins, or equities and companies.
In addition, BNK to the Future will be having a round 2 equity funding available to all. However, every country has restrictions and limitations to participate in the funding. For US customers, you must be an accredited investor to participate.
A reminder that 40% of the current monetary supply was created in the last 12 months. CN has resume obtaining 1 billion USD net transfer per month. 17 months ago, there was only 500 million USD on Celsius Network, but today it has grown to roughly 17 billion USD.
Celsius Network is able to maintain consistent interest payments because it utilizes different mechanisms to create yield such as DeFi (decentralized finance), lending to institutions, general lending, and mining.
Speaking of mining, Mashinsky stated that CN will expand mining operations into Canada and additional locations. The success of BTC mining in the US have allowed CN to keep interest payments high while competitors are slashing rates.
Features in the pipeline include in-app swap, available to certain jurisdiction, with an expected release date of August 12th, 2021. Near the end of August 2021, users can enable night mode and US accredited investors can earn in CEL.
The recent AMA promoted heavily on digital gold: PAXG, Tether Gold, and wDLGD. These tokenized assets offer direct exposure to gold and can easily be converted to-and-from fiat 24/7. They can also be used as collateral for Celsius Network loans and you can redeem them for physical gold should you choose do to so as they are fully backed by physical gold.
These tokenized gold assets are ERC20 which means you can earn a yield on them through Celsius Network, currently 5.5% APR. They are less volatile compared to crypto assets and increases your portfolio diversification. Another advantage is that you can buy fractional amounts compared to traditional buying of nominal amounts.
Historically, it costs you money for a third party to hold your physical gold for redemption, but these digital gold assets are a gamer changer for anyone who wants exposure to gold while taking advantage of the blockchain’s security and transparency.
Non-US users can now earn interest on LUNA. CN is waiting on regulatory clarity before they add LUNA for US users.
Celsius Network sent out an updated Term of Use and Privacy Policy via email and it is important that you take action because there is a deadline of August 5th, 2021.
I was hoping the recent AMA would address the situation but it did not mention it at all. Many speculate it is because Prime Trust cut ties with Celsius Network and so they had to update some policies.
Many users felt that is was “shady” for Celsius Network to “threaten” users’ funds and assets if they did not agree with the new Terms of Use and Privacy Policy.
Interest Earned
The last couple of reports have been rough as the crypto market dipped causing my earnings to tank as well. However, the market seems to be waking up and pumped nicely in the previous days.
It has been 4 weeks since my last report on Celsius Network earnings and during that time my account gained 5100 USD in value. 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 increased by 11% in 4 weeks.
Most of my assets are split among the four platforms that I use: Celsius Network, BlockFi, Bitrue, and Crypto.com. Both Bitcoin and Ethereum make up a nice portion of my portfolio and the recent rally helped tremendously in reversing the redness. My CN portfolio took a massive hit in the previous report but it is recovering nicely and is still up overall from the beginning of 2021.
BTC is currently at 33.8k USD and ETH is at 2142 USD as of writing this report.
Conclusion & Prospect
I am going to address the elephant in the room and hopefully Celsius Network will address it in the upcoming AMA this Friday as many users are still uneasy about it. I know I was hesitant when I saw the email from Celsius Network about the updated Terms of Use and Privacy Policy because of the short deadline to make the decision. Couple that with no mentions of it in the recent AMA and it definitely seems shady.
Remember that crypto is relatively new and considered the wild west and so it is constantly changing to remain lawful and regulated. Many will argue that this goes against crypto’s goal of decentralization and I agree with this sentiment, but Celsius Network is a CeFi (centralized finance) platform and so they must stay compliant.
Honestly, how many people actually read through the entire Terms of Use or Terms of Service for all the products and services that they use on a daily basis? I doubt that number is high.
With CeFi, like Celsius Network, at least you have a physical entity and company to bring to court if needed. Compared to DeFi, you are trusting anonymous teams and developers and have almost a zero percent chance of recovering your funds even if you bring it to court.
I do agree that Celsius Network should have addressed the situation during the AMA, especially if many people are asking about it. You are a company holding people’s funds and future retirement money, and a quick email or 5 minute talk/video would help put people at ease.
With that being said, I still believe in Celsius Network and Mashinksy—they have always put the community first and have been extremely transparent. They are constantly working on improving Proof of Community and setting the standard for other companies to follow. In the end, it is your fund and your decision should you decide to move funds off Celsius Network. I will continue to use Celsius Network and I recommend that you do your own research like with everything else in crypto.
It is nice to finally see a green portfolio full of green tickers again. The constant redness and dips of the previous weeks were demoralizing. A reversal instills confidence in the market and hopefully sparks the next bull run.
HODLing is not easy, but remember to think long-term rather than panic sell when the market turns bloody. Look at Bitcoin in the early days going from 100 USD down to less than 10 USD and where it is at today. Back then all you could do is buy, sell, or hold. This time around, you can earn a yield on almost all your crypto assets so HODLing is a no-brainer.
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.
You are currently reading the Free Version. If you would like more information, please consider switching to a paid subscription.
Each week I will report on a different interest-earning platform that I use—mainly, Celsius Network, Bitrue, Crypto.com, and BlockFi.
If you are new to crypto or have considered joining new platforms, check out the Starter Pack created by CryptoOneStop by clicking here or if you want to earn over 250 USD in referral bonuses then click here.