Chaince is a centralised exchange for trading Eos airdrop tokens. The idea being that all the profits from trade commissions will accrue to CET token holders.
Total number of tokens – 2,000,000,000 ( 2 Billion )
Each CET token represents 1/2 billion of the Eos in cetinterest, and you can withdraw the equivalent asset value of Eos by locking up your CET, which will be released to you if you return the Eos “borrowed”.
In their latest announcement Chaince management decided to lock up un-issued genesis airdrop tokens. In addition Eos accruing to these locked tokens will be used to purchase and lock up more CET each month. This is similar to burning tokens to increase the value of the remainng tokens. With the first trance of 615,730,326 effectively locked in account cetunderlock, The remaining CET in circulation is 1,384,269,374.
CET Eos deposit account is cetinterests, and the first deposit was 6473 Eos. The first weekly deposit was 400 Eos leaving a total of 6873 Eos currently.
Value of CET assuming locked up tokens are considered burnt. = 6873/1,384,269,674 = 0.000004965 Eos
One must look upon CET like a mutual fund where a $1000 dollars deposit can turn into $30,000 withdrawal on maturity. Current price of CET = 0.005 Eos which equates to about 1000 times asset backing, meaning that if you invested 1000 Eos today you can only withdraw 1 Eos. However as more Eos is deposited into cetinterests account, you can withdraw more of your Eos invested, and if the price of CET also increase you will be on a winner.
Because cetinterest will always increase in value of Eos held over time, CET will always trade at a multiple of the net asset backing. What that multiple would be is anyone’s guess, but the market will be a good indicator. Six months would be a good time for all the variables to set in and play out.
This ratio should decrease each week and month as more Eos are deposited and more CET locked up each month. If 12,000 Eos deposited are deposited each month, We can expect about 1 million CET to be locked up each month as well.
Glass Half Full
1) First week profit deposit was 400 Eos. This is based on a very small number of trading pairs. We can assume that this will increase very quickly as the number of trading pairs and users increase.
2) If users start to see that their asset values increase from their trading activity on the platform, it may incentivise them to trade more on this platfor.
3) Over time the value of CET can only increase in proportion to the asset backing.
4) Value of CET in dollar terms will vary proportionally with the price of Eos. There could be a leverage factor holding CET rather than Eos as the current exchange is 400 CET to 1 Eos. Not a true leverage but the gains could be bigger than holding the equivalent value in Eos.
5) I would expect that future airdrops into the cetinterests account be monetised and the CET purchased burnt.
A Word Of Caution
Are the CET in cetunderlock really burnt? Will the developers run away with the funds years down the line? As far as I am aware there is no proof that they have destroyed the private keys. Hopefully their model is based on a smart contract. (Someone could respond to this please ). The risk are high and perhaps so will be the rewards.
In my opinion CET if managed as promised, will be a good investment for the long term holder.
Update 1 Sept 2018
Cetinterests balance : 4757 Cetunderlock balance : 616035653 Chaince have undertaken what they promise. Free CET : 1383964347 Asset backing per CET = 0.00000344 It is a good start.
Update 1 Oct 2018
Cetinterests balance : 5338 Cetunderlock balance : 616066562 Free CET : 1383933458 Asset backing per CET = 0.00000385 CET Price 0.0040 Price Multiple 1038 times. It is strange that they have not increased the number of tokens traded.
Update 1 Nov 2018
Cetinterests balance : 5582 Cetunderlock balance : 616094432 Free CET : 1383905538 Asset backing per CET = 0.00000403 CET Price 0.0038 Price Multiple 943 times. Something is happening. Chaince have started adding more exchange pairs Eosish/Eos Zks/Eos