I tried to share my enthusiasm for the DRIP Community on the Reddit Cryptocurrency sub, but I forgot that Reddit can be a harsh and reactive mistress, thankfully with a short attention span…
I received a lot of flack, mostly from people who didn’t believe in the fundamentals of the coin, but weren’t prepared to read about it. I did my best to respond to each comment but it’s a bit like trying to hold back a tsunami with a single sandbag.
Never one to run from a fight (usually I walk away, trying to hold back the tears) I endeavoured to write a response to these criticisms and accusations. Partly because it seems I have a masochistic streak, but mostly because I believe in the power of DRIP, compounding interest and the strong fundamentals of the token.
So please allow me to present:
These were the basics of the criticisms, and my responses below each one.
It’s a Scam
Well, some random guy online talking about a Crypto that gives 1% interest per day for 365% could be a scam. On the article I linked, I do lead with the usual ‘Do your own research/Not Financial Advice’ proviso. The whitepaper and the code of the contract is available for anyone who wishes to view it.
And to be fair, Reddit Cryptocurrency subs are basically full of people shilling their favourite meme or shit coin. So I should probably have been a little more savvy going into it, and not expect a nice warm hug and a genuine ‘thank you for sharing such an awesome new crypto project’.
Is DRIP a scam any more or less than any other crypto or fiat currency? The first guy to accept 10,000 Bitcoins for two pepperoni pizzas undoubtedly took more of a risk on an unproven new idea, but Bitcoin is trading for over $47K at the time of writing. Government fiat currencies are backed mostly by debt and consumer confidence. All Cryptos gains their value from the amount of money people will buy and sell them for.
So to be fair to DRIP, its value is determined by the supply and demand of the market and its Smart Contract will honour the 1% per day because that is what it has been programmed to do.
It’s a Rug pull
Actually, it’s not, but fair enough to suspect that it could be. Many of the yield farms out there aren’t sustainable. If you get in close to day one you can get your money out while other people are FOMOing in, but when too many people start to pull their money out the whole thing collapses. I looked into some of these but decided against risking any of my money in them.
DRIP is different. You are essentially locking your deposit into the DRIP Faucet, and getting it back at 1% per day for 365 days/365%.
It’s not possible to rug-pull because liquidity is locked and paid back at 1% per day.
The contract is also kept sustainable by charging 10% on deposits and withdrawals, while there is only a 5% tax on compounding earnings. This is paid into the DRIPvault to pay this 1% daily interest. The tax fund is very healthy, but if for some reason, there weren’t enough DRIP tokens available to payout, the contract will mint more.
I’ll clarify the upper limit of this mechanism in a moment, but there are plenty more popular coins out there that don’t have any upper limit on supply (I’m looking at you Dogecoin!). Do people still buy Dogecoin?
DRIP had a total supply of 1,000,000 DRIP, and a maximum supply of 99,999,999 DRIP
Your DRIP withdrawal will always be honoured by the Smart Contract. If the Faucet DripVault does empty for some reason (extremely unlikely) more DRIP will be minted in order to pay for your withdrawal.
One important thing to note, however, is that DRIP isn’t minted/counted until it’s withdrawn from the Faucet contact. So those that have reached the maximum wallet amount of 100K DRIP, and are therefore locked into the contract aren’t counted into that total.
There are plenty of coins that burn tokens to reduce their supply over time. DRIP is also deflationary in nature.
Deflationary — First off, DRIP is a deflationary token meaning that there is always less of it. Originally 1,000,000 DRIP where created. When DRIP is deposited into the faucet it is burnt. This means that it is not in circulation any more. This total DRIP amount is thus decreasing which in time will push the price up further as demand grows. Check out the DRIP contract.
Did you know that your government can print more money pretty much whenever they feel like it? Do you know what that causes? Inflation of prices and devaluation of your earnings and savings… DRIP does the opposite!
Sounds like a Ponzi scheme to me!
It’s not a Ponzi scheme. A Ponzi scheme pays the first people to ‘invest’ with the funds from people who ‘invest’ later, while pretending to be a profitable business.
The DRIP Faucet is a Smart Contact that does what it’s been programmed to do… Well, hopefully, you read what I wrote above… I was just going to repeat it again here, but if you didn’t read that, you probably won’t read this…
Perhaps you’d prefer a video instead? (This very informative video is from Brandon AKA DRIP Guide, my upline buddy and a great guy!)
Keep reading, I’ll expand upon it below…
Sounds like a Pyramid scheme to me!
Sorry, also not a pyramid scheme.
A pyramid scheme is an illegal investment scam based on a hierarchical setup that pays members higher up in the structure with funds from new members. — Investopedia
So basically the same as a Ponzi… See above, right?
There is an aspect of referrals and Buddy codes in DRIP. This means that you need to be referred by someone already in DRIP, but this doesn’t have any impact on how the smart contract works or how much you will earn from your deposits. It’s a bit like clicking an affiliate link for a product that you were going to buy anyway. The price is the same for you, but the referrer will earn a little reward.
Why you choose your Buddy could be for a number of reasons. They might offer a signup reward, random airdrops or they might offer to help you build your own team.
My approach is to help my team members build their own teams, so that they can share the joy of DRIP with the people that they care about. (Articles about this coming soon, so please give me a follow if you’d like to stay in the loop. My Telegram group link is at the bottom of this page if you’d like to connect there).
Please Note: There is no obligation to recruit new people to join DRIP, it is sustainable on it’s own without constant new recruits. On the other hand, you might feel inspired to share this awesome project with other people you care about so that you have people who understand where your (and their) new found wealth came a few months down the road ;)
The r/DripCommunity sub is full of people spamming their buddy codes and shit!
Yes, this is true and a very good point. After making the initial post on Reddit I actually posted on the DRIP Community sub and raised that point. Since then there has been more positive engagement and less spamming. There are still some blatantly self-promotional posts, but these have decreased. Also, spammy comments on other people’s threads now get deleted by a nice bot. Yay for bots!
I would say this situation is less an indication of the DRIP community than it is of the Reddit community.
It’s simply Unsustainable
— that one guy who posted the same thing 4 or 5 times on different comments on the same thread… His general thrust was that there is no bank in the world that would pay 1% per day on deposits. That no person would lend money under those conditions. He said something about a black box. I’m not sure what he meant, so maybe I should dig that comment up so I can respond fully?
Basically, this is not banking. We’re no longer talking about the way things used to work. This is DeFi. Decentralised Finance. This is uncharted territory in some ways. There is going to be a lot of new stuff coming out of DeFi in the future… Stay tuned!
Probably the Banking and Finance sector should be scared. This is people taking the power back. Soon we won’t need them anymore…
But back to DRIP. There are several mechanisms at work here.
One mechanism is the actual Smart Contract running on the Binance Smart Chain. It is literally software, doing what it has been programmed to do. It locks up your deposit and pays it back at 1% per day for 365%, including additional deposits and compounded earnings. It will always do this while the Binance Smart Chain exists. Presumably, everything will keep working until/unless we have some sort of end-of-days type event when all of our computers stop working and all of our digitally stored data and wealth will similarly be wiped out; all those endless selfies, that unreleased masterpiece, all our Bitcoins, bank balances, Dogecoins, the lot… But I think that’s for a different article…
Another mechanism is the price of DRIP. Which is in many ways independent of the existence of the DRIP Faucet. $DRIP price is controlled by supply and demand. If more people are selling than buying, the price will go down. If more people are buying than selling the price will go up.
Is Bitcoin really worth north of $45K? It is if people are willing to pay it.
Is ETH really worth over $3700? It is if people are willing to pay it.
And let's not talk about Dogecoin…
It’s just Too Good To Be True
When we were palaeolithic people, living in caves and jungles, we were hardwired to be on alert for danger. This is not so useful these days in our (mostly) very safe societies, but this instinct still exists and we automatically look for potential danger rather than potential opportunities.
In short, we are risk-averse. We evolved this way, it’s what got us to be here and alive today!
However, once our initial reaction has passed, we do have the opportunity to take some time to do our own research and find out whether we were correct in our response or not. If the evidence suggests, after all, that it’s not too good to be true, we might choose to take a limited risk (to invest a small amount of energy or funds) to test the waters.
Dipping a toe in DRIP, so to speak.
Taking a calculated risk in DRIP could be a life-changing opportunity for you. But if you’re not open enough to find out, I guess you’ll never know.
I forgot one!
This sounds like BitConnect!
The only similarity between DRIP and BitConnect is the 1% daily interest payment. BitConnect was a Ponzi scheme. As you’ll see above, DRIP is not.
DRIP operates via a Smart Contact on the Binance Smart Chain. DRIP is not a company and isn’t controlled by anyone. The Faucet contact operates the way it has been designed to operate. It’s software.
BitConnect was tied to the price of Bitcoin. The DRIP network has several native tokens and increasing use cases and partnerships in the real world.
Obviously, Do Your Own Research, and don’t risk money that you can’t afford to lose, like all investments.
I shared my Reddit drubbing with my DRIP team members to find out what their responses were. Some are posted below.
Brandon aka Drip Guide
The DRIP Faucet can absolutely pay the 1% per day because it’s paying in DRIP tokens. It’s in the code of the smart contract. The only risk is the future price of the DRIP token. If there’s more supply (people claiming/selling) than demand (new people buying the token) then the price will go down. It’s very simple and this guy doesn’t understand how the Faucet contract works.
“Nobody will use or borrow money for that rate of return for the long term”
Huh? No one is “borrowing money” in DRIP.
Definitely, the Faucet will do what it’s supposed to do. The code is the code. The only question is the future value of the DRIP token, but that seems to be a no brainer question when you look at everything we have going for the token. We’re still very much “pre-viral” as they say.
As long as people within the community keep using the ecosystem DRIP will keep flowing. You stake money, it goes into the reservoir to payout the users, you hydrate your gains the taxes goes into the reservoir, you claim your gains the taxes go into the reservoir. So no matter what anyone does the tax rate far exceeds the already healthy and sustainable daily interest rate. Rather than the enticing interest rates of a trillion percent APY from some DAOs that fall over days after opening to the public because they’re so front-loaded, we’ve seen DRIP swing from around $50 to near $3 to $93 since launch but these were not volatile movements it was from the price of BNB while still overall being resistant to the downward movement of the markets. I believe that DRIP is here to stay and getting in anytime is a good time to start. Whether you start at $5 or $50k the end amount is the same, we all reach our maximum contract yield if grown and nurtured correctly, through the power of compound interest.
Everyone I know who is part of the DRIP community is singing its praises and blown away with how well it functions. Those who are not involved keep bleating about DRIP being a Ponzi, tulip madness or just too good to be true. But what I know for myself is that the system works. I joined this amazing community and started using DRIP back at the start of October, got in at a good price and have seen amazing growth since far beyond what I was expecting, to the point where claiming a few days here and there has paid for flights, a holiday and this Christmas. Many congratulations to you all who are involved in this great community 💧
Years to come. Token supply, taxes, and only being able to claim 1 percent daily makes the Faucet damn near perfect. Only 1,000,000 drip total supply keeps price healthy. Taxes are high so rewards can go to those who hodl. And no one can grow a stack and pull causing price to drop immensely. The problem with DAOs and high interest earning crypto stakes is all three of what I mentioned. Too many coins solely depend on large amounts of newcomers which is the only thing that funds rewards to holders and early investors grow a large stack, pull it all and leave everyone else 40% rekt.
I just don’t see how anyone in The faucet will ever walk away. I know I won’t. I’ll just start a new wallet and build again.
Simon, one argument to rebut cynicism: There are close to 25k drippers now, using a variety of ‘financial services’. That would take any institution like a bank or a credit union an average of five full-fledged branches to accommodate. Here this is all done by a small team of smart guys with a smart contract. Imagine how much money that leaves on the table to be shared by the ‘customers’.
Look, the fact is financial institutions loan and print money all the time. We don’t have near the cash money, gold or precious commodities to cover all the loans and debt in our financial systems. So what gives it value? Well with our current system it is the government backing that gives it value. A government that is itself almost bankrupt or continually raising the debt ceiling to cover its expenses. The organization and people believing in it give it its value and nothing else. In that sense, our current financial system is a scam. If the government fails the whole system fails. What gives decentralized markets value is its people who see the value and invest in it. The faucet contract is immutable, meaning it will always pay out rewards even if it has to print new coins (as governments do with currency all the time) you will always get your DRIP backed by the contract itself. Whether that DRIP has value or not is another story. The reason it has value is because people invest in it and that creates value. In addition, Forex is working very hard to add additional utility to the coin so it has multiple uses cases. In that sense, it turns from a currency to more like a stock. Meaning it produces value by having multiple use cases and the faucet is like a dividend paying back investors daily.
Just some thoughts I had when reading his statement.
Also Andrew G
Kind of presumptuous coming from the Reddit crowd, wasn’t it the Reddit crowd that used crowdsourcing and hype to drive up the price of GameStop and AMC when the fundamentals didn’t support the price action? The price increased rapidly because they were artificially driving up the price, fueled by trying to show that the current market system can be circumvented and the big boys can be beat. That was a movement driven by a crowd and made a lot of people wealthy, and some lose a lot of money.
Maybe I need to clarify, the big boys in our case are the centralized financial institutions. They use our money for investments while paying a very minimal interest rate for the use of it. The remainder of the profits (which are abundant) are used to support the infrastructure required to maintain a centralized system. Buildings, employees, ATMs, etc. not to mention they need to claim a healthy profit, to make institutional investors happy.
DeFi is our way of capitalizing on a better system where all those systems are not required to be maintained and Forex built it to put the money (that would normally be required to support all of that infrastructure), back into the investors' pockets with a healthy daily payout.
You can tell him that the taxes pay for sustainability and the 1% is paid out in the native token only. If still fudding after that, move on. Don’t waste your time on people with closed minds. Nothing you say will change it for him. Move on to the next person
Thanks for Reading! I hope this has helped some of the more cynical amongst us to view DRIP with a little more open mind. Of course, I can’t convince you if you’re unconvincable. So I wish you well.
Just don’t whine later that you missed the boat. Because you won’t have, anytime is a good time to get into DRIP! The fundamentals are always the same.
My post on Reddit got auto-deleted due to a wonky URL, but I don't want to lose it, so I’m posting…
I spent way too long on this for no one to see it! Thanks, Medium for taking a look!
When I tried to post this article to Reddit it was autodeleted, without the option of reposting, due to a problem with the URL I used linking to the original Reddit post… Luckily I still had the post open on a web browser tab, so I posted it as a new Medium article instead!
Read more articles about Cryptocurrencies on CryptoStars! Remember to give us a follow!
If you’d like to have your questions answered before joining DRIP, please join the Drip Players Telegram group and get personalised support.
If you need a Buddy to join the DRIP Community we’d be more than happy to have you join our team: drip.community/faucet?buddy=0x321c76e7649D3F334582355273C3e347f62D2E27
Or enter the following code into the Get a Buddy box on the DRIP Faucet page: 0x321c76e7649D3F334582355273C3e347f62D2E27
If you need more information about any of the aspects of the DRIP network, please see this collection of articles that I’ve put together, including a growing FAQ article, where you can post questions and have them answered.