Crystal Token aims to fix all of the issues with the first generation lending platforms and right now they are well on the path of doing so.
- Next generation lending platform
- Trading bot stats available
- AI arbitrage trading bot
- Unknown team
Crystal Token is in the process of a remake, the current review is no longer valid. Crystal Token seems to be moving away from lending for good and has shifted their focus towards trading bots. I’ll update this review when the remake is done.
Crystal Token has made changed to their lending program and their ICO is over. I have removed the ICO sections and updated the information about their new and improved AI trading platform.
What Is Crystal Token?
Crystal Token is a second generation lending platform, trying to improve on the major problems that eventually caused the downfall of the lending space. Just to name a few is long term capital release, single bot trading strategy, hidden business models and lack of communication to the investors. In order to overcome these problems they have had to re-brand the lending platform approach with some out of the box thinking. I’m really excited to see if they are able to follow through on their ambitious plan to become a sustainable lending platform.
Crystal Token is an Ethereum based (ERC20), which is a contract deployed on the Ethereum blockchain, and the source code is publicly accessible. The main purpose is to offer an innovative token which offers convenient passive income options for the community members.
The sustainability of the system is guaranteed by a number of business models which generate revenue for the platform, such as automated trading with support of AI techniques, internal exchange fees, marketplaces, marketplaces and trading-as-a-service.
I’ve grabbed the intro video from their website so you can watch it here, it’s not really saying that much about the platform, but it’s well made and full of buzz words.
How Does Crystal Token Make Money?
The core business of the Crystal Token platform is the trading of cryptocurrencies, which is carried out automatically via a dedicated trading bot. Unlike many other lending platform Crystal Token has developed a bot which is trading with multiple cryptocurrencies instead of just sticking to one. The trading bot will blend pure trading strategies with Artificial Intelligence (AI) and Machine Learning techniques which will guide the trading using predictive models. All of this is explained very well in their whitepaper if you are interested in the details, having said that you should always read the whitepaper of any project you invest in.
On top of that Crystal Token will offer innovative features such as marketplaces, debit cards, advertising, gaming and pooling. All of this will provide additional value to Crystal Token as multi-purpose utility token and platform.
The Crystal Token AI Trading Platform
The Crystal Token AI Trading Platform (lending platform) is quite unique and at first glance seems confusing. Any other lending platform I’ve been a part of has just 1 coin based on USD and then you can sell profits for bitcoin, this seems basic now but at first it was not that apparent. Crystal Token is stepping up their game by introducing another token on top of the Crystal Token:
- CYL token is the main token for Crystal Token. The value of CYL tokens in ETH is determined by classic demand and offer mechanisms decided by the market on their internal exchange.
- VCYL token is the virtual token which is used for paying daily interest rates and referral bonuses. The VCYL token can be converted to a CYL token at the current marked price. The value of a VCYL token is strongly tied to ETH and will always be worth 0.001 ETH.
I was a little confused at first, but it is actually a very solid idea. By doing it this way there is no ties to USD and every value of a token, be it CYL of VCYL, is tied directly to ethereum and you will benefit from possible price increase of the ETH value.
The new updated AI trading platform
Crystal Token decided to scrap their previous lending platform moving away from the usual long capital lock in periods. They also got rid of all the lending tiers we are used to and came up with a much more simple system. I personally think they have been looking at Arbitraging since they have a very similar setup, but with some improvements. The main drive behind Crystal Token is their AI trading bot and with their new platform you only have to hold CYL tokens in your wallet and activate the little ticker on the dashboard to get daily returns. The daily returns will be paid in VCYL, but you can choose to get that auto converted to CYL tokens at the current rate. This works as a compounding reinvestment and you have the option to disable this at any time if you choose to.
In order to take advantage of the AI trading bot you need to hold 100 CYL on your account, anything less will not work. As you get more CYL from daily interest you can choose to just let it compound or you can choose to take some profit, which I will always recommend you do from time to time. You can sell the amount you desire, but remember to hold at least 100 CYL tokens in order to take advantage of the AI trading.
I personally like this new change and I think it’s a move in the right direction. Getting rid of the long lock in periods is something I expect will spread to new lending platforms, since it gives control back to the investors and it will be in high demand.
The Team Behind Crystal Token?
In their whitepaper Crystal Token has listed some of their team members, which is a refreshing sight compared to many other lending platforms I have had experience with or have made reviews on. But the team members are only given by first name and there are no pictures or links to verify that they are actually real persons. Nice try Crystal Token, but you can do better than that.
As always it’s time to see what information we can pull from their domain name, which they registered 28 December 2017 and locked it in for 3 years. I would have preferred it to be more, I mean why save a few bucks on a domain if you believe in the long term stability of the project. The good news is that the Crystal Token website is already hosted on a dedicated server, which is very nice to see. This means they will be able to handle massive amount of traffic.
Their domain contact is protected by WhoIsGuard, but this is normal practice for anything online these days.
The Bottom Line
There really isn’t much to put my finger on regarding this platform. Maybe the most brilliant idea is to move away from $USD in regards to loans and daily payout. Having the token tied directly to ETH will eliminate any crackdown from governments in regards to the matter of securities. It’s all just crypto and there is no entry point for regulations, when it’s not fiat money at the moment. BitConnect got served big time in the US because of this and they basically blamed the closing down of the lending platform because of it. One could argue that it’s not easy to keep track of how much money you have in your loans and the price of ethereum is volatile, but that’s just how it is with any other cryptocurrency. We are not in this game for safe bets and riding the roller coaster of volatility is how to make massive gains.
As I’m writing this review the average daily interest on the AI trading platform is at 0,5%. In the current market that is pretty good, we have pretty much been in a bear market since they launched their ICO. If you like to gamble, then you can also use your Crystal Tokens to play games. At the moment they offer two games, a slot machine and the crystal game. None of those games really speak to me but I think it’s a great idea to tie the token to something other than pure lending.
One of the major issues I have with trading bot platforms is that there is never any proof of an actual trading bot. But to my surprise I noticed a link in the dashboard to the trading bot engine and it shows the actual trades done and the average for the last 6 days. They have included the name of the exchange and even though it’s just in the test phase they have not sugar coated the daily gains, here is a screenshot of the trades from their dashboard:
You can clearly tell that not all trades are in the green and there is no massive growth. Again, remember that we are in a bear market and this is the testing phase of the bot. When the ICO is done you will have the option to tap in to their trading bot and take control of the trading. I’m looking forward to see how this will work, but I’m hoping for the option to select exchanges and set it up with my own API key for total control. It would however be icing on the cake to see some live sell/buy orders go through just to verify this is actually a working bot.
Crystal Token is also active on social media, they have a facebook group and twitter, but most they post most of their information on telegram. If you are in crypto and don’t use telegram, then you are doing it wrong. Many platforms, be it lending or regular cryptocurrencies, make good use of telegram and you need to be informed, so get a telegram account f you haven’t.
This was all a lot of good about Crystal Token and to be honest this is the best platform I have seen in a long time, but why is it not rated 10 you may ask. I have to deduct points because the team is unknown, they did post names, but there is no way to fact check. I’d prefer to see some links to real persons on LinkedIn or maybe just some face shots for me to do a reverse image check on. This however can be said about many if not any lending platform, but I hope this will change in the future.
At the moment CYL is not listed on any external exchange and you have to use the Crystal Token internal exchange. With the launch of the new AI trading system the exchange opened and it works a bit different from others. I have to admit I’m not a fan of this exchange, but it’s setup to protect the platform from day traders and huge price fluctuations. Since the payouts are tied to the price of the CYL token it’s important that the value of the token isn’t all over the place. The exchange works in rounds and each round is 3 hours, the value of the token will be determined at the end of the round depending on the buy and sell orders. This means that if you see a high value of the token at the beginning of the round and you get tempted to sell, then you have to keep in mind that price will most likely change during the round. For instance if you see the price is $2 per CYL and you wish to sell to take advantage of a high price, then you will not sell your tokens at the snapshot value, you will sell at whatever the price is at the end of the round. The same of course goes when you wish to buy at a cheaper than average price, you set your buy order in a hope for the best.
Investing in any platform no matter how good it looks is always a risky investment and you should never invest any money you can not afford to lose. Crystal Token is surely on the path of something amazing and could be a game changer, I hope for the best and wish all who venture in to the platform good luck!