Why DRIP is The Single Most Interesting Altcoin This Year

And how to identify a rug pull

I’ve never seen anything like DRIP. It’s absurd.

DRIP is a relatively new cryptocurrency that has created a way to pay its users 1% interest per day. That’s right.

Drip beats yearly average market returns in less than a week.

1% might not sound like much but it means that 1k in Drip would return you $3,650 after one year (not accounting for compounding interest).

10k would return you $36,000, and 100k=$365,000. Even Warren Buffet would say “goddamn,” to that.

So, is Drip legit? Is it worth your time or is it just another crypto Ponzi scheme?

How Drip is Creating Overnight Millionaires

‘The drip telegram group is full of stories of how people are paying fees for their children’s tuition, huge medical bills for friends and creating accounts to safe guard the future of their loved ones.’ — DRIP Network

DRIP was created on the Binance Smart chain as a means to foster an ecosystem that rewards holders daily ROI on a deflationary token (1,000,000 tokens in total).

The network was previously invitation-only, but in my experience, you can just connect a Binance Smart Chain wallet or Metamask wallet and start receiving your 1% per day.

DRIP also relies heavily on referrals. Anyone you refer to the DRIP network will enable you to get a portion of their deposits.

Let me stop you right there. I know, how in the sweet baby Jesus is this not a pyramid scheme?

Well, this is how they explain it. Taxes. Oh yes, taxes. DRIP are the Redcoats and its users are the Boston tea party — but without any delicious tea.

DRIP’s business model is to implement a 10% tax on all transactions, except for buying its token. This includes:

• Deposit into the interest pool (otherwise known as “the faucet) — 10% tax
• Withdrawal out of the faucet — 10% tax
• Recompound your earnings (what they call “hydrate”). This feature allows you fat returns like 3678% APYs — a 5% tax each time you do this.
• Whale withdrawal Tax — varies from 0.99% to 50% depending on the percentage withdrawn from the faucet.

So that’s how it works. They tax the shit out of you.

4 Steps to Spot a Rug Pull

DRIP is cool. Moreover, its creator, a guy known as “Forex Shark,” has led many successful crypto projects in the past. Heck, DRIP is even a cool-sounding name.

D-R-I-P. Oh, yeah.

So, is it a rug pull? Here are some obvious questions to ask:

1. Tell me why this token is useful? DRIP is a store of value token. There are thousands of these on the market making, including a little unknown project called Bitcoin. Being a store of value with no utility always makes me highly skeptical of a project. DRIP reminds me of Safemoon — no utility and purely hyped on its core idea. Not a good start.
2. What’s the biggest risk? Everything. Nah. But… maybe? The biggest risk is the userbase compounding their money over and over and never taking profits. Even with the tax model, I don’t see this sustaining in a bear market. If users do take profits, something like a “60/40 plan” (hydrating 60% of the time and taking profits 40%) it could have long-term value.
3. Is it a Pyramid Scheme? DRIP’s referral feature certainly makes it seem like a Pyramid Scheme. But it’s only a feature, so we can let this slide.
4. How volatile is it? This is where DRIP stands out most. It doesn’t crash as badly as the rest of the market as the tax system incentives users to keep their money in (see chart).

Final Thoughts

In closing, yes, I did move my entire portfolio into DRIP finance. The numbers don’t lie. Over 95% of my net worth is invested. Besides, what are you gonna do? Hold cash as it inflates out the ass right now?

Nah.

I lied. I just threw about $1,000 in. I would never put a substantial amount into this project despite its fascinating premise.

DRIP is the most interesting crypto project I’ve seen this year by far. Furthermore, as it sits outside the top 3,000 by market cap it’s begging for more users to jump in. But I’m not completely sold. I never am.

I spoke this weekend with smart, savvy investor Lauren Como and we agreed: In investing, it’s better to be safe than sorry.

I’ll throw some “gambling” money into DRIP, but as it goes with all crypto investments, when you can, take out your original investment. Don’t treat investing like a drunk trip to the casino. You might make some gains, but the house always wins in the end.

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Ever since I was a child it was my dream to become a financial advisor. Unfortunately, it never came true. Therefore I am not a financial advisor and you should do your own research and not just listen to random people on the internet. Nothing contained in this publication should be construed as investment advice.