Celsius Network

The Celsius Wallet will be one of the only online crypto wallets designed to allow members to lend their crypto to earn interest on deposited coins or use those coins as collateral to get a loan in $.

About Celsius Network

The Celsius Wallet is an online crypto wallet designed to allow members to use coins as collateral to get a loan in dollars, and in the future, to lend and earn interest on their deposited crypto. Celsius allows members to borrow USD against their wallet crypto holdings (initially Ethereum and Bitcoin), and thus avoid having to sell them. In the future (and conditional upon regulatory approvals), cryptocurrencies deposited by members into their Celsius Wallet will earn POS fees and be available on the network for immediate borrowing and shorting for a fee, for which interest in the form of Celsius Tokens (CEL) will be earned (up to 9% annual).

Token Sale Use of Blockchain

Product

3.4
Product
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

3.0
N/A
3 - Prototype / MVP / alpha.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

3.0
N/A
3 - Interesting.
Target User Base

Is it mass market or niche?

5.0
N/A
5 - General audience / mass market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

3.0
N/A
3 - Partial, a novel approach or aspect.

Product

* Celsius’ goal is to allow its members to use their crypto holdings as collateral in order to secure low interest loans in dollars, thus leveraging their crypto holdings rather than selling them. Celsius also plans to enable crypto-holders to earn fees on their assets (when they are lent) in the form of CEL, and to offer a large array of lending options with highly competitive interest rates. The platform will enable margin traders (funds) to borrow crypto-assets for hedging, shorting, deferring taxes, and locking in profits. “Celsius will not take any positions and will not act as a counterparty to any transactions. Our primary purpose will be to facilitate transactions between lenders and borrowers, creating a liquid order book and maximizing return on capital on pledged assets.”
* Core services include algorithmic Trading, Fee Distribution, and Pool Management. Celsius will use a modified Black-Scholes algorithm to generate the amount of deposit required from borrowers for each coin. The interest paid for each coin will also be produced algorithmically, but there will also be a reverse auction market. “Crypto assets will be distributed among several wallets and top exchanges. In addition, we will store a cold wallet treasury to provide last-resort insurance in case of a catastrophic event. We will also employ white-hat hackers and third party cyber security solutions to provide a continuous cover layer of audit and protection.”
* “We will take a variable fee based on the amount of interest charged in each borrowing transaction. Our members will always receive a minimum of at least 5% annual interest on any lent crypto currencies. We will not charge account or transaction fees.”
* It is stated that the team “has built a working prototype of the Celsius platform including our mobile wallet for lenders and our shorting platform for borrowers. The products are now being beta tested and we plan for our initial public release in the Fall of 2018.” The app is available on Google Play (4.2 average rating from 92 reviews) and claimed to have over 12k downloads. The project’s github contains the mobile app (17 commits, 3 contributors, 0 releases), Ethereum node proxy (9 commits, 3 contributors, 0 releases), and lender’s app (366 commits, 6 contributors, 4 releases).
* There is a high degree of competition in the space of crypto/fiat p2p borrowing/lending apps and services (e.g., this article which lists Salt, Unchained Capital, ETHLend, Othera, and Everex). Yet, Celsius does appear to have differentiating features and appeal – here is a Competitive Matrix comparing Celsius to Salt, ETHLend, and Nexo.

Product Whitepaper

Use of Blockchain

2.2
Use of Blockchain
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

2.0
N/A
2 - Some smart contract functionality.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

3.0
N/A
3 - Potentially disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

2.0
N/A
2 - Some, mainly network effect.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

1.0
N/A
1 - Essentially centralized.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

3.0
N/A
3 - Interesting.

Use of Blockchain

* CEL is an ERC-20 token. At the time of the token sale, CEL tokens allows holders to become members of the platform, deposit cryptocurrencies in the Celsius wallet, apply for dollar loans with cryptocurrencies as collateral, and pay interest on these loans at a discount. Traders will be obligated to deposit a fee in CEL to initiate loans. In the future, CEL tokens will also allow members to lend cryptocurrencies and gain interest and rewards, as well as achieve platform seniority (“which will impact the interest rate gained”).
* “Our platform will be a unique combination of multi-block-chain nodes, auto trading on multiple exchanges and a high-end user experience. All this is orchestrated by smart predictive algorithms designed to reduce rates, maximize profits to our members, mitigate risks, and maintain the safety and growth of the ecosystem.”
* CEL tokens will be paid out as membership reward to crypto lenders daily, based on fees collected from trades. “The algorithm for distributing CEL tokens to lenders is a modified proof-of-stake, where time and amount play a key role.” (“Interest earned will be paid in BTC, ETH or Celsius Tokens (CEL) based on the profile of the user.”)

Use of Blockchain Roadmap

Whitepaper

4.0
Whitepaper
Comprehensiveness

Does it cover the full scope of the problem and solution?

4.0
N/A
4 - Satisfactory coverage, well written.
Readability

Is it easy enough to understand?

4.0
N/A
4 - Easy to read and understand.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

4.0
N/A
4 - Clear, well thought out, realistic.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

4.0
N/A
4 - Clear, well thought out, realistic.

Whitepaper

There are two documents, a whitepaper and a tech paper. The 38-page whitepaper presents a high-level description of the product, including technical and deal-flow specifications, crowdsale and token economics, a roadmap, and the team, as well as a summary of the detailed legal disclaimer available online. The 29-page tech paper is highly detailed, specific, and transparent with regard to platform operation, deal and asset flow, distribution of CEL tokens and token economics, and platform services, however software architecture is described using only a diagram. In addition, the website contains a video section with reviews, interviews, conferences, and short FAQ explanations.

Whitepaper Compliance

Roadmap

3.0
Roadmap
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

3.0
N/A
3 - An overall plan, major milestones stated.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

3.0
N/A
3 - Optimistic.
Vision

Is there a larger, long-term vision?

3.0
N/A
3 - A trend with potential.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

4.0
N/A
4 - Available and trusted.
Current Position

Where is the project now, relative to its vision and plans?

2.0
N/A
2 - Critical obstacles ahead.

Roadmap

The roadmap spans from Q3-2017 to 2019 with 9 major milestones and few details. Milestones already achieved include mainly the whitepaper, the prototype, and the crowd sale. Phase 1 of the Celsius Wallet app (which will allow members to deposit their crypto assets to use as collateral for loans) is planned for release in Q2-2018, along with expansion to alt coins (“we will be gradually including more of the top 20 cryptocurrencies for use in our wallet”). Phase 2 of the Celsius Wallet app is to be released in Q3-2018 (USD loans, with member bank accounts linked to wallet and loans to be paid back in USD or CEL). Third-party microlender integration, along with Phase 3 of Celsius Wallet (more coins, users begin earning interest), is planned for Q4-2018. The following are planned for 2019: multiple blockchain type nodes to support top 20 coins, trading on multiple-exchanges, smart algorithms to manage risk, integration with market trading tools in order to short, and implement Ethereum Plasma Proof-of-Stake distributions to Celsius members.

Roadmap Company and Team

Compliance

3.8
Compliance
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

3.0
N/A
3 - Limited or uncertain use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

4.0
N/A
4 - Not as such, or compliance is assured.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

3.0
N/A
3 - Prototype / MVP / alpha.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

5.0
N/A
5 - Professional, audited.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

4.0
N/A
4 - Professional.

Compliance

* “When the token is issued, members who own CEL tokens will be able to apply for and receive dollar loans against their current holdings. In addition, users who accept the loan may pay the interest in CEL tokens for a discount.”
* CEL are to be rewarded to crypto holders as interest (along with BTC and ETH). Interest is to be generated from fees collected from institutional traders who use the assets pool.
* The whitepaper includes a summary of the detailed legal disclaimer which is available online.
* “Celsius strictly adheres to all federal rules and regulations. Lending and borrowing members will be checked for KYC/AML compliance as required by law. All borrowers have to be accredited investors or SEC registered funds. Celsius does not intend to sell any coins but only accept transfers from KYC verified sources such as Coinbase, Gemini and other exchanges.”; “To avoid any uncertainty, we have decided to follow the Reg-D rules under US securities laws with respect to the US.”

Compliance Token Sale

Company and Team

3.6
Company and Team
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

3.0
N/A
3 - Company structure in place.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

4.0
N/A
4 - Verifiable relevant experience.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

4.0
N/A
4 - Fully assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

3.0
N/A
3 - Somewhat uncertain, probably okay.

Company and Team

* Celsius Network was founded in 2017 and is headquartered in New York.
* Celsius presents a 7-member executive team (CEO, COO, CTO, CMO, CFO, EVP Engineering & Development, VP Sales), an 8-member tech team (including 2 blockchain developers, 5 developers, and 1 product design), most of whom are from a consulting R&D agency called MVP Workshop, and a 14-member core team (mostly sales, marketing, community management), as well as 7 advisors. Profile pictures, short bios, and LinkedIn profile links are provided.
* CEO Alex Mashinsky’s LinkedIn profile provides a summary of his background: “7X Founder +120 VC investments, 34 patents, +$1B in raised funds and +$3B in exits. CEO of www.GoverningDynamics.com”. The whitepaper states that “Over 30 patents have been issued to Alex, relating to exchanges, VoIP protocols, messaging and communication. In fact, Alex has a foundational patent on VoIP (Voice Over Internet Protocol) technology dating back to 1994 and is now working on MoIP (Money Over Internet Protocol) technology.” COO Daniel Leon is also a Managing Partner at GoverningDynamics. CTO Syed Fazli has been CTO of Bloomberg Tradebook for the past 8 years.

Company and Team Product

Token Sale

2.8
Token Sale
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

3.0
N/A
3 - Justifiable.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

2.0
N/A
2 - Only loosely related to plans.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

3.0
N/A
3 - Rough estimates, but sensible.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

3.0
N/A
3 - Sufficient company/community interest balance.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

3.0
N/A
3 - Some presence, lukewarm reception.

Token Sale

Hard Cap (raised): $50,000,000
Soft Cap: $15,000,000
Presale token price: $0.20
Crowdsale token price: $0.30

Fund Allocation:
Loan Reserves: $20,209,500 (40.419%)
Operations + Management: $6,487,000 (12.974%)
Research + Development: $5,988,000 (11.976%)
General + Administrative: $5,489,000 (10.978%)
Legal + Regulatory: $5,489,000 (10.978%)
Sales + Marketing: $4,241,500 (8.483%)
Lenders’ Insurance Pool: $1,996,000 (3.992%)
(+$100,000?)

Token Supply: 650,000,000
Tokens for Sale: 325,000,000 (Unsold tokens will be burned.)
Token Allocation: Presale – 40%, Crowdsale – 10%, Treasury – 27%, Team – 19%, Partners – 2%, Advisors – 2%.
“Employee tokens are held in 3 allotments. The first allotment will be unlocked six months after the Token Generation Event. The second allotment of 4.75m tokens will be released only if the token price reaches an average of $1.50 for ten (10) days… and the 3rd allotment of 4.75m tokens will be released only if the average price remains $3.00 for thirty (30) days..”
“The additional 50 million tokens will be placed into a smart contract, with 25m tokens being released to the Celsius Treasury only if the CEL Token price in the secondary market remains above an average of $1.50 for ten (10) days… And an additional 25,000,000 CEL Tokens will be released only if the CEL Token price in the secondary market remains above an average of $3.00 for thirty (30) days… A couple of things to note about these additional tokens: a) they are released directly to the treasury and not to any individual or exchange and b) they will be used predominantly to fund new loans (81%) with the remaining 19% used to incentivize new team members as we grow. Tokens placed into the Treasury will be used for new loans, and not sold off immediately upon delivery. Rather, Celsius would only sell off small portions from Treasury to meet the demand for dollar loans on an as-needed basis (i.e. as our USD supply needs topping up to meet loan demand).”

Product

* Celsius’ goal is to allow its members to use their crypto holdings as collateral in order to secure low interest loans in dollars, thus leveraging their crypto holdings rather than selling them. Celsius also plans to enable crypto-holders to earn fees on their assets (when they are lent) in the form of CEL, and to offer a large array of lending options with highly competitive interest rates. The platform will enable margin traders (funds) to borrow crypto-assets for hedging, shorting, deferring taxes, and locking in profits. “Celsius will not take any positions and will not act as a counterparty to any transactions. Our primary purpose will be to facilitate transactions between lenders and borrowers, creating a liquid order book and maximizing return on capital on pledged assets.”
* Core services include algorithmic Trading, Fee Distribution, and Pool Management. Celsius will use a modified Black-Scholes algorithm to generate the amount of deposit required from borrowers for each coin. The interest paid for each coin will also be produced algorithmically, but there will also be a reverse auction market. “Crypto assets will be distributed among several wallets and top exchanges. In addition, we will store a cold wallet treasury to provide last-resort insurance in case of a catastrophic event. We will also employ white-hat hackers and third party cyber security solutions to provide a continuous cover layer of audit and protection.”
* “We will take a variable fee based on the amount of interest charged in each borrowing transaction. Our members will always receive a minimum of at least 5% annual interest on any lent crypto currencies. We will not charge account or transaction fees.”
* It is stated that the team “has built a working prototype of the Celsius platform including our mobile wallet for lenders and our shorting platform for borrowers. The products are now being beta tested and we plan for our initial public release in the Fall of 2018.” The app is available on Google Play (4.2 average rating from 92 reviews) and claimed to have over 12k downloads. The project’s github contains the mobile app (17 commits, 3 contributors, 0 releases), Ethereum node proxy (9 commits, 3 contributors, 0 releases), and lender’s app (366 commits, 6 contributors, 4 releases).
* There is a high degree of competition in the space of crypto/fiat p2p borrowing/lending apps and services (e.g., this article which lists Salt, Unchained Capital, ETHLend, Othera, and Everex). Yet, Celsius does appear to have differentiating features and appeal – here is a Competitive Matrix comparing Celsius to Salt, ETHLend, and Nexo.

Category Breakdown
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

3.0
N/A
3 - Prototype / MVP / alpha.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

3.0
N/A
3 - Interesting.
Target User Base

Is it mass market or niche?

5.0
N/A
5 - General audience / mass market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

3.0
N/A
3 - Partial, a novel approach or aspect.
Product Score:
3.4

Use of Blockchain

* CEL is an ERC-20 token. At the time of the token sale, CEL tokens allows holders to become members of the platform, deposit cryptocurrencies in the Celsius wallet, apply for dollar loans with cryptocurrencies as collateral, and pay interest on these loans at a discount. Traders will be obligated to deposit a fee in CEL to initiate loans. In the future, CEL tokens will also allow members to lend cryptocurrencies and gain interest and rewards, as well as achieve platform seniority (“which will impact the interest rate gained”).
* “Our platform will be a unique combination of multi-block-chain nodes, auto trading on multiple exchanges and a high-end user experience. All this is orchestrated by smart predictive algorithms designed to reduce rates, maximize profits to our members, mitigate risks, and maintain the safety and growth of the ecosystem.”
* CEL tokens will be paid out as membership reward to crypto lenders daily, based on fees collected from trades. “The algorithm for distributing CEL tokens to lenders is a modified proof-of-stake, where time and amount play a key role.” (“Interest earned will be paid in BTC, ETH or Celsius Tokens (CEL) based on the profile of the user.”)

Category Breakdown
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

2.0
N/A
2 - Some smart contract functionality.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

3.0
N/A
3 - Potentially disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

2.0
N/A
2 - Some, mainly network effect.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

1.0
N/A
1 - Essentially centralized.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

3.0
N/A
3 - Interesting.
Use of Blockchain Score:
2.2

Whitepaper

There are two documents, a whitepaper and a tech paper. The 38-page whitepaper presents a high-level description of the product, including technical and deal-flow specifications, crowdsale and token economics, a roadmap, and the team, as well as a summary of the detailed legal disclaimer available online. The 29-page tech paper is highly detailed, specific, and transparent with regard to platform operation, deal and asset flow, distribution of CEL tokens and token economics, and platform services, however software architecture is described using only a diagram. In addition, the website contains a video section with reviews, interviews, conferences, and short FAQ explanations.

Category Breakdown
Comprehensiveness

Does it cover the full scope of the problem and solution?

4.0
N/A
4 - Satisfactory coverage, well written.
Readability

Is it easy enough to understand?

4.0
N/A
4 - Easy to read and understand.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

4.0
N/A
4 - Clear, well thought out, realistic.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

4.0
N/A
4 - Clear, well thought out, realistic.
Whitepaper Score:
4.0

Roadmap

The roadmap spans from Q3-2017 to 2019 with 9 major milestones and few details. Milestones already achieved include mainly the whitepaper, the prototype, and the crowd sale. Phase 1 of the Celsius Wallet app (which will allow members to deposit their crypto assets to use as collateral for loans) is planned for release in Q2-2018, along with expansion to alt coins (“we will be gradually including more of the top 20 cryptocurrencies for use in our wallet”). Phase 2 of the Celsius Wallet app is to be released in Q3-2018 (USD loans, with member bank accounts linked to wallet and loans to be paid back in USD or CEL). Third-party microlender integration, along with Phase 3 of Celsius Wallet (more coins, users begin earning interest), is planned for Q4-2018. The following are planned for 2019: multiple blockchain type nodes to support top 20 coins, trading on multiple-exchanges, smart algorithms to manage risk, integration with market trading tools in order to short, and implement Ethereum Plasma Proof-of-Stake distributions to Celsius members.

Category Breakdown
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

3.0
N/A
3 - An overall plan, major milestones stated.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

3.0
N/A
3 - Optimistic.
Vision

Is there a larger, long-term vision?

3.0
N/A
3 - A trend with potential.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

4.0
N/A
4 - Available and trusted.
Current Position

Where is the project now, relative to its vision and plans?

2.0
N/A
2 - Critical obstacles ahead.
Roadmap Score:
3.0

Compliance

* “When the token is issued, members who own CEL tokens will be able to apply for and receive dollar loans against their current holdings. In addition, users who accept the loan may pay the interest in CEL tokens for a discount.”
* CEL are to be rewarded to crypto holders as interest (along with BTC and ETH). Interest is to be generated from fees collected from institutional traders who use the assets pool.
* The whitepaper includes a summary of the detailed legal disclaimer which is available online.
* “Celsius strictly adheres to all federal rules and regulations. Lending and borrowing members will be checked for KYC/AML compliance as required by law. All borrowers have to be accredited investors or SEC registered funds. Celsius does not intend to sell any coins but only accept transfers from KYC verified sources such as Coinbase, Gemini and other exchanges.”; “To avoid any uncertainty, we have decided to follow the Reg-D rules under US securities laws with respect to the US.”

Category Breakdown
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

3.0
N/A
3 - Limited or uncertain use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

4.0
N/A
4 - Not as such, or compliance is assured.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

3.0
N/A
3 - Prototype / MVP / alpha.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

5.0
N/A
5 - Professional, audited.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

4.0
N/A
4 - Professional.
Compliance Score:
3.8

Company and Team

* Celsius Network was founded in 2017 and is headquartered in New York.
* Celsius presents a 7-member executive team (CEO, COO, CTO, CMO, CFO, EVP Engineering & Development, VP Sales), an 8-member tech team (including 2 blockchain developers, 5 developers, and 1 product design), most of whom are from a consulting R&D agency called MVP Workshop, and a 14-member core team (mostly sales, marketing, community management), as well as 7 advisors. Profile pictures, short bios, and LinkedIn profile links are provided.
* CEO Alex Mashinsky’s LinkedIn profile provides a summary of his background: “7X Founder +120 VC investments, 34 patents, +$1B in raised funds and +$3B in exits. CEO of www.GoverningDynamics.com”. The whitepaper states that “Over 30 patents have been issued to Alex, relating to exchanges, VoIP protocols, messaging and communication. In fact, Alex has a foundational patent on VoIP (Voice Over Internet Protocol) technology dating back to 1994 and is now working on MoIP (Money Over Internet Protocol) technology.” COO Daniel Leon is also a Managing Partner at GoverningDynamics. CTO Syed Fazli has been CTO of Bloomberg Tradebook for the past 8 years.

Category Breakdown
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

3.0
N/A
3 - Company structure in place.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

4.0
N/A
4 - Verifiable relevant experience.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

4.0
N/A
4 - Fully assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

3.0
N/A
3 - Somewhat uncertain, probably okay.
Company and Team Score:
3.6

Token Sale

Hard Cap (raised): $50,000,000
Soft Cap: $15,000,000
Presale token price: $0.20
Crowdsale token price: $0.30

Fund Allocation:
Loan Reserves: $20,209,500 (40.419%)
Operations + Management: $6,487,000 (12.974%)
Research + Development: $5,988,000 (11.976%)
General + Administrative: $5,489,000 (10.978%)
Legal + Regulatory: $5,489,000 (10.978%)
Sales + Marketing: $4,241,500 (8.483%)
Lenders’ Insurance Pool: $1,996,000 (3.992%)
(+$100,000?)

Token Supply: 650,000,000
Tokens for Sale: 325,000,000 (Unsold tokens will be burned.)
Token Allocation: Presale – 40%, Crowdsale – 10%, Treasury – 27%, Team – 19%, Partners – 2%, Advisors – 2%.
“Employee tokens are held in 3 allotments. The first allotment will be unlocked six months after the Token Generation Event. The second allotment of 4.75m tokens will be released only if the token price reaches an average of $1.50 for ten (10) days… and the 3rd allotment of 4.75m tokens will be released only if the average price remains $3.00 for thirty (30) days..”
“The additional 50 million tokens will be placed into a smart contract, with 25m tokens being released to the Celsius Treasury only if the CEL Token price in the secondary market remains above an average of $1.50 for ten (10) days… And an additional 25,000,000 CEL Tokens will be released only if the CEL Token price in the secondary market remains above an average of $3.00 for thirty (30) days… A couple of things to note about these additional tokens: a) they are released directly to the treasury and not to any individual or exchange and b) they will be used predominantly to fund new loans (81%) with the remaining 19% used to incentivize new team members as we grow. Tokens placed into the Treasury will be used for new loans, and not sold off immediately upon delivery. Rather, Celsius would only sell off small portions from Treasury to meet the demand for dollar loans on an as-needed basis (i.e. as our USD supply needs topping up to meet loan demand).”

Category Breakdown
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

3.0
N/A
3 - Justifiable.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

2.0
N/A
2 - Only loosely related to plans.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

3.0
N/A
3 - Rough estimates, but sensible.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

3.0
N/A
3 - Sufficient company/community interest balance.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

3.0
N/A
3 - Some presence, lukewarm reception.
Token Sale Score:
2.8

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