The life of 100 DRIP tokens in the Faucet…part 3
How does all this effect my DRIP strategy?
This time we will combine the information from part 1 & part 2
(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)
Background/Preface
In part 1, we talked about the process of investing DRIP, hydrating, earning, & withdrawing DRIP tokens. In part 2, we talked about how changes in the price effect profitability.
In this article I will discuss how all this effects my overall strategy with the DRIP Faucet…
My current stats
Here are my current stats:
- Deposit amount = 378.694
- Claimed amount = 94.426
- Max payout = 1.382 K
- Current DRIP price = $0.34
- Total invested USD = $361.216
- Total withdrawn so far = $49.96
- ROI USD = 13.83278%
- Time invested = 127 days
- Current deposit value = $127.11
- Max payout value at current token price = $469.88
In summary, I first invested into the DRIP network on 10/2/22.
Since then, 127 days, I’ve made back around 13% of my investment…
Is that good or bad?
Let’s look at what it would be like if I invested $361 on 10/2/22 & just let it earn until now, if the DRIP price stayed the same.
Starting deposit value = $361
Earning daily = $361*.01 = $3.61 daily
$3.61 x 127 days = $458.47 ($97.47 profit or 127% ROI!!!)
What if I deposited it all & the price went down like it did?
On 10/2/22, the DRIP price was at $6.36. $361 = 56.76 DRIP tokens.
56.76 tokens earning 1% daily would equal 72.08 tokens.
At the current token price of $0.34 my 72.08 tokens would be worth $24.50.
This would be a loss of $336! OUCH!!!
What actually happened?
I started with only 2 DRIP tokens (worth around $& have made several more deposits & hydrates over time.
I also made several more deposits, each time with a lower DRIP price, over time.
I now have 378 DRIP in the Faucet, with a max payout of 1382 DRIP.
Current value = $127.25, down $233.96…still not good!
My potential max payout, at current prices, = $469.88, up $108.66.
Maybe there’s still hope…maybe…
But it’s definitely time to rethink my strategy.
My New Process
Knowing how the taxes work, from previous articles.
Knowing about the gas fees in this project.
Now it’s time for me to put the two of them together & do something a little different. Hopefully, it’ll be way more profitable for me.
My aim at this point is to reach ROI.
(After reaching ROI, I’ll reassess my position again. (It’s always good to take another look at your position & strategy.))
This is what I’m going to do, at least for the time being, in order to reach ROI. I still need to withdraw over $311!
- Temporarily stop investing more funding into this project until I reach ROI. (I’ve had to learn this from other projects in the past.)
- Let the earnings build on Sundays.
- Hydrate on Monday mornings. (Pay 5% hydrate taxes on Available earnings)
- Let the earnings grow until Saturday evening.
- Withdraw earnings on Saturday evenings. (Pay 10% taxes on available earnings)
- Convert DRIP to BNB via the swap page. (Pay another 10% tax…)
- Hopefully, the amount of BNB I get after converting on the swap page is more than the gas fee from Monday morning. This will then go toward my ROI.
Why am I doing it this way?
I need to recoup my investments before investing more, at least for the time being. (My may invest again after making ROI. We’ll see at that time.)
I remember having to learn this lesson on several other projects in the past.
I don’t think DRIP will rug.
I’m not sure what the future token price will be. I would feel a lot better if I had already made ROI. I bought on the way down…
I REALLY NEED TO MAKE ROI!!!
My last withdraw from DRIP was around $6.88.
At that rate (if the token price stays the same) then would take around 45 more weeks (over 11 months) in order for me to make ROI…This is a long time from now (Approx. January 2024).
I hope the price goes back up!
If that happened then I would make ROI MUCH quicker.
Who knows what the future holds? I do know that if I don’t make ROI then I should not have invested in this project. I really like the project & other projects from the developer, like my pigs in the Pig Pen.
Hopefully, the token price & future will improve.
At this point I've got to do what I’ve got to do.
Time will tell if it’s the right decision or not…
As always, thank you again for reading my articles.
It is much appreciated.
God Speed!
If you would like to see what investments I’m currently active in then go read my referral link article.
My top 5 highest earning articles from January.
