The life of 100 DRIP tokens in the Faucet…part 2
What happens to your DRIP if the token price changes?
Last time we discussed how to purchase, deposit, hydrate, & withdraw DRIP tokens.
This time we will discuss what happens when the DRIP price changes.
(NONE OF WHAT I WRITE IN MY ARTICLES IS TO BE TAKEN AS INVESTMENT ADVICE. I am not an advisor for this nor am I suggesting any financial action on your part. DYOR)
DRIP price changes?
The current DRIP at the time of this article is $0.38. It may go up in the future or it may go down. Time will tell…
We will look at both cases in this article.
In Part of this series we bought 100 DRIP tokens, invested them into the Faucet, Hydrated a few times, Withdrew them from the Faucet, & converted them back to BNB.
Let’s do this again but insert token prices. Let’s see what happens when the price changes!
When the price stays the same…
Suppose we bought 100 DRIP tokens at $0.38 each, then it would cost us $38.00.
We would then invest those 100 tokens into the Faucet, paying 10% tax on them. This would leave us with 90 tokens invested. If the token price stays the same then it would be worth $34.20 ($38.00-$3.80 (tax)).
If you just let in sit there & grow without hydrating then those 90 tokens would grow into 328.50 tokens.
(At $0.38 each that would be around $124.83! This would be $86.83 profit!!!)
Now lets suppose you were to hydrate your earns…
In our previous article, we hydrated our earnings every 10 days for 20 days & then let them earn for 10 more days. This gave us a new deposit balance of 108.405 tokens & our available balance of 10.8405 tokens.
At $0.38 each our new deposit balance would be worth $41.1939 & our available balance would be worth $4.11939.
As before, if you were to withdraw those 10.8405 tokens they would become 9.75645 tokens, after paying 10% withdraw tax on them.
At $0.38 each, those 9.75645 token would be worth $3.707451, roughly 9.75645%. This would put you at 9.75645% ROI in 30 days time, roughly 0.325215% daily after all the taxes have been paid.
What if the price goes down, as it has been for a while…
It has been said that the DRIP price is roughly going down 2% daily.
Let’s do the math on that, using the same example as above. We start out buying 100 tokens at $0.38 each. We then deposit them in the DRIP Faucet, hydrate twice every 10 days, let the earnings grow, withdraw after the next 10 days, & then convert them back to BNB.
What would our final results be like?
In order to do the math on that then we will need to know the final DRIP price at the end. (We already know that it will start out at $0.38 each when we bought those 100 tokens earlier.) We already know how much DRIP we will have in the end, if we follow the same example as above.
Here is a listing of what the DRIP looks like as it goes down 2% daily.
- Day 1 price = $0.38
- Day 10 price (1st hydrate) = $0.316824
- Day 20 price (2nd hydrate) = $0.258868
- Day 30 price (withdraw available earnings) = $0.211514
Therefore, we would start out buying 100 tokens at $0.38, which would equal $38.00.
- Then on day 10 (1st hydrate), with our new deposit balance at 98.55 tokens, this would equal $31.22301994. Our Available would equal 0 because we hydrated our earnings.
- On day 20 (2nd hydrate), with our new deposit balance at 108.405 tokens, then this would equal $28.0626286. Our Available would equal 0 because we hydrated our earnings.
- On day 30 (withdraw), with our new deposit balance still at 108.405 tokens, it would now equal $22.92921072. Our available balance has grown for 10 days, without hydrating, & is now worth $2.292921.
- Our withdraw amount would equal (after paying 10% withdraw tax) $2.06.
This would put our ROI at around 5.42% after 30 days.
What if the price goes up, as it might, in the future…
Let’s look at this again, as if the price goes up by 2% daily…
- Starting price at $0.38. Deposit amount = $38.00. Haven’t earned anything yet. So no available balance.
- Day 10 (hydrate). Deposit balance (98.55 tokens) = $44.7550216. Our Available would equal 0 because we hydrated our earnings.
- Day 20 (hydrate again). Deposit balance (108.405 tokens) = $60.01173376. Our Available would equal 0 because we hydrated our earnings.
- Day 30 (withdraw earnings). Deposit balance (still 108.405 tokens) = $73.15396859. Available to withdraw balance = $7.315397.
- Our withdraw amount would equal (after paying 10% withdraw tax) $6.583857.
This would put our ROI at around 17.3% after 30 days.
In summary…
So you have decided to invest 100 DRIP into the DRIP faucet, hydrate every 10 days for 20 days, then let it earn for another 10 days, & withdraw the available earnings. This would mean you would be able to withdraw around 9.75645 tokens after moving it around & paying taxes on it.
List is what it would look like after you factor in the changes in DRIP price…
- If the price stays the same then you would be able to withdraw $4.11939, putting you at around 9.75645% ROI.
- If the price goes down at round 2% daily then you would be able to withdraw $2.06, putting you at round 5.42% ROI.
- If the price were to go up 2% daily then you would be able to withdraw $6.583857, putting you at around 17.3% ROI.
More than likely this will not be your exact amount if you invested 100 DRIP tokens today. Most of the time it is usually not the best case scenario or the worst case. Most of the time it is somewhere in the middle.
This means that your ROI may be around 10.82%, which is an average of all three of these scenarios.
Who can know the future? It might be totally different!
Hope this helps with some speculations, concerning DRIP price changes.
Let me know what you think.
As always, thank you again for reading my articles.
It is much appreciated.
God Speed!
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