Opportunities:
Earning interest while assets are deposited at a wallet is a new idea and should be attractive to many users who are just holding their cryptocurrencies anyways.
The project is led by a team who had created successful ventures in the tech industry multiple times before. We believe that in entrepreneurship, past success is a strong indicator of future success.
Celsius makes it easy to become a lender – users simply store their assets at the wallet. This makes onboarding lenders easier which may lead to a lower borrowing rate.
CEL tokens will have immediate utility (applying for dollar loans and receiving a discount on interests) at the moment of token generation event.
Concerns:
In cryptocurrency, the trend is slowly moving towards Proof-of-Stake (PoS), which allows coin holders to receive extra holdings when they hold onto their coins. Therefore, the interest earned on the Celsius wallet needs to be higher than the return from staking coins.
Conclusion:
Overall, we are neutral about the short-term potential of this ICO but like its long-term potential. Our thoughts of the tokens for short term and long term are as follows:
For short-term holding:
Neutral. In the current market environment, it is getting a lot harder to reach hard cap with unmet demand. Celsius’ fund raising amount of $50 million makes it difficult to fill the hard cap, leaving no unmet demand.
For long-term holding:
Good. We like the project’s idea which is backed by an all-star team who had created successful startups in the past.
Cryptocurrency lending projects are easier to gain traction compared to projects in industries where the use of cryptocurrency is not prevalent yet. Celsius Network also makes it easy to become a borrower. With the strong team in place, we believe it has a good chance to succeed.
