Project overview

Celes Chain is an innovative blockchain platform that run financial services/applications and provides access to regulators and compliance departments. It reduces the cost of regulation and increases efficiency. Financial Institutions that use Celes Chain can reduce their cost of implementation, increase their revenues and enhance their return on capital. Users of the financial applications will benefit from a higher quality service.

 

Celes Chain supports financial applications including but not limited to: information providers, service, cross-border applications, investment banking and IT support.

 

Celes Chain is using its own consensus algorithm, Delegated Proof-of-Work (DPoW). It combines PoW and Proof-of-Burn (PoB).

 

Token model

In the PoW portion of the consensus algorithm, nodes are rewarded in “wood” for mining. This wood represents voting rights to select the block producer on the Celes Chain. In the PoB portion, the nodes that collect and accumulate the “wood” in the previous steps will head for the “wood” burning round. The more “wood” the nodes burn, the higher the voting power for the block producer they get. This “wood” burning process will be rewarded in Celes Chain’s token (CCHN) and the block producer will also be rewarded the CCHN token.

 

Users who own the Celes Chain token (CCHN) can choose between three strategies:

  • They can purchase Celes Chain services and applications with CCHN
  • They can purchase external hash calculations (if available) with tokens and then obtain the tokens indirectly.
  • Gain profits by purchasing Celes Chain services or external hashing power with fiat money, and then obtain tokens indirectly.

 

Whitepaper

The Celes Chain whitepaper is quite weak. Although it covers the different features of the platform as well as the token model, it is sometimes hard to follow because there are a lot of syntaxial errors. It looks like it was written by someone who isn’t completely fluent in English. In addition, there are some important information missing from the whitepaper like the roadmap, the token metrics, the go-to market strategy, the team members, etc.

 

Team

Gao Han — CEO and Co-founder
Bachelor from Tsinghua University, PhD from the University of Chicago, previously worked for Goldman Sachs, Head of Trading at China Investment Corporation (CIC), founder of Guojin Securities (Hong Kong), and executive of HKEX.

 

Michael Yeung — Co-founder and Chief scientist
Bachelor from Electronic Entering, Tsinghua University, Master of Computer Engineering from Newcastle University, UK, Master of Financial Engineering from Imperial College London. Previously worked for CICC Hong Kong, BBVA (Derivatives, Special Research on Blockchain), led the development of several world-leading blockchain application project.

 

Liu Zhijian — Co-founder
Bachelor from Tsinghua University、Master from Hong Kong University of Science and Technology. Previously worked for the Royal Bank of Scotland, London, China Development Bank (Hong Kong).

 

Liu YiLan — CTO
Master of Computer Science, Central China Normal University. Early Tencent employees for over 10 years, technical director of Dajiang Innovation Internet Division, a technical team leader with more than 300 people.

 

Wang Shen — Partner & Legal Counsel
Bachelor of Peking University, PhD of Mathematics Application from Purdue University, PhD of Law from University of Houston. Previously worked at major US oil companies and top US law firms: Andrews Kurth Kenyon and White & Case.

 

Roadmap

Q3 2017: Feasibility Study
Blockchain scalability problem research

 

Q1 2018: Whitepaper Draft
Determining Celes as a Regulatory Financial Chain

 

05.2018: Whitepaper Release
Proposed the DPoW consensus and the Time Division Multiple Proof Consensus Protocol

06.2018: Identify the Development Framework

08.2018: Complete DPoW consensus
Complete the burning certificate and achieve the high efficiency and decentralization

 

09.2018: Smart Contract 1.0 online
Contract authority configuration and regulatory online

 

Q4 2018: Test Network Online
Build a test network to meet global developers

 

Q1 2019: Main network boot
ABP starts the main network

 

 

ICO terms

The token sale starts in October.

Ticker: CCHN

Token type: ERC20

ICO Token Price: 1 CCHN= 0.25 USD

Hardcap: 16,000,000M$

Sold on pre-sale: 10,000,000 USD

Total Tokens: 2,100,000,000 CCHN

Available for Token Sale: 20%

Accepts: ETH

 

Celes Chain is currently doing an Airdrop where participants can earn 10 CCHN for completing a task and an additional 5 CCHN for referring a friend. They are also running a bounty program on Telegram where they are giving away 5,000 CCHN between September 26th and September 28th.

 

Community hype

Telegram: 48,052 members

Twitter: 618 followers

Facebook: 541 follows

 

Strengths

  • Before a Dapp is added on Celes Chain, the Regulators have to review it and make sure it provides value to users. This ensures the quality of Dapps in the ecosystem.
  • The DPoW consensus mechanism allows for fast transactions as well as decentralization without having to compromise on security.

 

Red flags

  • The DPoW consensus mechanism is new and has not been extensively tested by other blockchains.
  • Celes Chain is aimed mostly at financial Dapps, but there are already many other popular blockchains with the same focus, most notably BitShares.
  • The Celes Chain can only process 3,000 TPS, which is quite low compared to BitShares 1,000,000 TPS.
  • A lot of important information is missing from the Celes Chain website like the roadmap and the token metrics.
  • Depending on the sources, the value of 1 CCHN changes and there is no official information about how much Celes Chain intends to raise.

 

Ratings

Team: 7.6/10

The Celes Chain team is extremely solid. They all have an impressive background in finance. The only issue is that none of the founders seems to have any experience in blockchain technology.

 

Token Model: 3.8/10

The Token model is quite weak. The token is only used as a mean of payment on the platform and there is no built-in incentive for users to hold tokens over a period of time.

 

Token Distribution: 5.8/10

Since there is no available information concerning the actual distribution of tokens, it’s hard to evaluate how decentralized it is going to be. There are however doing a bounty campaign and an airdrop which helps in putting tokens in the hands of users.

 

State of the Project: 4.7/10

The Celes Chain Mainnet release is scheduled for the near future (Q1 2019), which is always good for an ICO. However, there is a lack of transparency and communication with their community, even concerning basic information such as the value of 1 token at the token sale and how much they intend to raise.

 

 

Market: 6.2/10

The financial services market is massive and can greatly benefit from blockchain technology. However, there are already many established blockchain projects that offer a similar product to Celes Chain’s. It will be hard for them to gain traction and market shares.

 

ICON score: 5.6/10

 

Conclusion

At Icon Partners, we consider Celes Chain to be a decent project for the financial service industry. Their DPoW consensus mechanism is innovative and their team has extensive knowledge of the financial industry. However, what they offer isn’t different enough from their competitors. Also, they need to be a lot more transparent with their community, because the way they are doing things now doesn’t give a lot of confidence to future users/investors. On the other hand, they are close to the Mainnet release. If the team successfully releases is in the expected timeframe, this should give confidence back to their users.

 

We encourage you to do your own research and come to your own conclusions when investing in an ICO. All the information in this review are either facts or ICON Partners’ opinions and should not be used as investment advice.

 

 

Celes Chain Links

Website

Whitepaper

Telegram

Twitter

Facebook

 

 

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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.