Kelta is an upcoming ICO project, specifically created to crowdfund new technological advances for an already highly-advanced data center in Slovakia that hosts crypto mining.
The goal is to create a “decentralized datacenter” that will be commercially available to scientific researchers and crypto miners at affordable rates. The company will issue proprietary KLT tokens as part of this ICO.
The Kelta KLT Team & Company
Kelta is owned by AGEM DATA, an umbrella company that owns a data center in Bratislava, Slovakia, as well as a crypto mining company that operates out of that data center. According to the Kelta website, the company was formed specifically and expressly for the company’s ICO.
Kelta’s CEO and founder is listed as George Mac, an entrepreneur who has been involved with Kelta since 2015. Prior to founding Kelta, Mac owned a website design company known as Webfloor that is still active. Before this, Mac co-founded a wagon repair company located in Poland. The rest of Mac’s previous companies, of which there are many, are hard to qualify due to language barriers as they were all located either in Eastern Europe or Russia.
The Kelta KLT Project
The Kelta project itself seeks to raise funds for major upgrades to the Kelta data center. One of the biggest upgrades is a liquid immersion-cooling technology that is said to be highly efficient in reducing temperature of its datacenter workstations; Kelta estimates that once this cooling technology is put in place, it will increase the power of workstations by 25%.
The Kelta KLT token ICO is meant to generate the funds necessary to implement these upgrades as well as other unspecified ones. The benefits of participating in the ICO are tied to the Kelta data center in that each token purchased then entitles the token holder to a specific amount of data center resources that can either be used or that can be leased to third parties at a set rate.
Under this framework, each KLT token will be equivalent to 1 watt’s worth of power. KLT token holders will be able to access their account and manage how their power is allotted through a mobile app and web portal that Kelta will develop. This dashboard is designed to provide a high level of utility for token holders. Uses of the wattage entitled to token holders, according to Kelta, will have the ability to be dedicated to crypto mining, neural network training, or any other task that requires wattage devoted to computational work.
ROI, according to Kelta, will vary on use case. Using wattage for scientific research is unlikely to provide a monetary return, though cryptocurrency mining and leasing accumulated wattage is estimated to carry a 6% to 8% ROI and an 0.5% ROI respectively per month. This is independent of any fees, which, according to Kelta, amount to around $160 USD per kilowatt per month.
Kelta KLT ICO Token Details
The Kelta ICO pre-sale is scheduled to begin on March 5 2018; the general ICO opens a week later on March 12. Its listed end date is April 30 2018. The price per token is variable, depending on when during the ICO an investor purchases the tokens, and adheres to the following pattern:
- Pre-sale: 1 KLT per 0.00495 ETH
- Weeks 1 and 2: 1 KLT per 0.00565 ETH
- Weeks 3 and 4: 1 KLT per 0.00595 ETH
- Weeks 5 and 6: 1 KLT per 0.00625 ETH
- Week 7: 1 KLT per 0.00655 ETH
As an Ethereum-backed token, KLT can only be purchased with ETH. Again, each KLT is worth 1 watt of power used by the Kelta data center.
Is Kelta a Worthy Investment?
We’re not really sure what to think about Kelta as a project. The approach is innovative – a cryptocurrency token that entitles token holders access to a data center’s computing power – and the price per token is sufficiently small that you can invest moderately without running into major financial risk.
However, we do have concerns about risk, considering that the method for managing the wattage you’re entitled to – the online portal – has yet to be developed. Its functionality therefore can’t be evaluated, which means you’re investing blind on the promise that this online dashboard will provide you the ability to use your wattage directly or lease it to others.
With the specific mechanics up in the air it’s hard to evaluate whether Kelta is a good risk or a bad one. Still, the fact that the Kelta data center is already up and running is a mark in its favor. Overall, we would classify investment in Kelta as a qualified yes, though only in reasonably modest amounts as a hedge against the end product not performing as promised.