CELO – The Neglected Blue Chip Altcoin

In theory CELO has all the tick marks to blossom in the 2021 bull market:

✅  A Solid Team

The founders of CELO have a proven track record in venture capital and early stage startups. 

✅  Leading Investors

Among the investors are the industry’s most recognized names such as a16z, Polychain Capital and Coinbase Ventures. 

✅  A Compelling Use Case

Celo is focussing on peer to peer payments based on wallets that are linked to mobile phone numbers. The target market for CELO is Africa and the emerging world where the financial infrastructure is still underdeveloped. 

CELO has issued the cUSD & cEUR stable coins. $CELO itself is held as a reserve asset for the issued stable coins and serves as a governance token. 

✅  End User Adoption

CELO has its own wallet called Valora. The number of CELO network addresses was increasing sharply in the past quarter. 

✅  Enterprise Adoption

It was recently announced that Deutsche Telekom supports CELO as an investor and a validator. In total there are more than 130 members in CELO’s alliance for prosperity. 

✅  Low Market Cap

$CELO has a market capitalization of a little more than 1 billion USD. This is still low enough to absorb a significant price move in a retail driven mania. 

✅  A Token Price close to 1$

We know that sounds ridiculous and the only thing the market should care about is market cap. However, the year is 2021 and we are back in a bull market with lots of new retail folks entering the market. 

From analyzing retail behaviour over various years we know that retail investors disproportionately invest into cryptocurrencies that are close to 1$/1€. Until today new people reach out to our editor team and tell us you should look into “X” it currently costs only around 1$.

It is remarkable that retail thinks like this but definitely one of the reasons for the very strong performance of $ADA and $XRP during bull markets. Therefore it certainly won’t hurt that $CELO is trading around 5$ not too far away from 1$. 

CELO Market Potential

The trajectory of CELO so far has been “pumpy”. The price was mostly flat, but went through several pumps which indicate that the price can easily be moved in the event of retail hype.

Let’s not forget that in January 2018 significant hype levels moved $ADA to more than 30 billion USD in market cap in the course of only a few months. It is therefore certainly possible that a blue chip altcoin like CELO could reach a similar valuation at the peak of the 2021/22 cryptocurrency bull market. 

How to play CELO

This is not financial advice. However, in our opinion CELO should be included in a 2021 “passive hodl portfolio” with a low allocation. There is a chance that at one point during the cycle retail will discover it and things could get parabolic really fast. 

Typically coins like CELO appear to be sleeping forever and eventually they break out and start moving tremendously. In such a scenario it is important that you are positioned and fully invested before the movement occurs. However, you need to wait  potentially for months for this event to occur.

In the 2021 bull market there will be a time when blue chip altcoins such as CELO that were not getting the love they deserve will suddenly be in the spotlight.

During such a breakout event CELO could mirror the performance of $ADA from November to January 2017 in which $ADA made 50x within 3 months. A 50x movement in such a short period of time is very unlikely in today’s market. However, a 15x move is totally on the cards in our opinion. 

Parabolic moves of altcoins generally occur at the end of the bull market. When these events happen they are signalling that the bull market is about to come to an end. At Frontier Protocols the editors believe that the 2021 bull market will most likely come to an end in Q4 2021 or Q1 2022.