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Unbiased Talks — Breaking Down Drip And The Drip Network

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Via Medium

Unbiased Talks — Breaking Down Drip And The Drip Network

The other day I read an article on Medium by Hope, where she says that Drip is a scam. While I disagreed with her premise, she brought up an interesting point; she mentions that most of the articles…

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The other day I read an article on Medium by Hope, where she says that Drip is a scam. While I disagreed with her premise, she brought up an interesting point; she mentions that most of the articles about Drip on Medium are biased. Now, I admit that I fall into this category because it’s hard not to be biased towards something you’re invested in; but, it brings up the interesting point of not being so one-sided all the time.

It’s hard not to fall into the one-sided trap. The algorithms on each platform will show you more and more content that you want to see and agree with, so we get stuck in these echo chambers where the stories on our feed match our thoughts and don’t challenge us to see the other side. If you immerse yourself with only details you agree with and never branch out, you only see half the story. That’s why in this article, I want to give as much unbiased information as I can on Drip.

Questions and Unbiased Answers

What is Drip?

Drip, by itself, is a crypto asset that runs on the Binance Smart Chain. It is a Smart Contract (code) that can’t be changed, and anyone can review it. You can buy it from Drip’s website or on Pancakeswap. Drip is the only token that can operate inside of the Drip Network.

What is the Drip Network?

The Drip Network is a financial application that runs on the Binance Smart Chain, and just like Drip, it’s a Smart Contract (code) that can’t be changed, and anyone can review it. The Drip Network is like any other financial app such as Cash app, Venmo, Wells Fargo, etc.; it has a set amount of functions that it allows you to do, and it only works with the Drip token.

How does the Drip Network work?

Keeping with the financial app reference, you need to deposit your Drip tokens into the application for it to work. Once your tokens are deposited, the app will lock your tokens and start to generate your 1% daily return based on the amount of Drip tokens you deposited. Keep in mind that you will not be able to pull your tokens out of the app once they are deposited; you can only get them back through the 1% return you get daily.

Now, let’s say it’s been 24 hours since you deposited your Drip tokens, and you come back to the website and see your 1% generated; there are three options you can do with your 1%. You can claim your 1%, you can compound your 1% interest to grow your investment, or you can do nothing and let it accumulate.

What are the returns?

When you deposit your Drip tokens into the application, the code will set the time length at 365 days, or one year, and the rate at 1% per day, which means you will get a 365% return on the amount of Drip tokens you deposit. I want to emphasize that you will get a 365% return on the number of Drip tokens, not the dollar value of the tokens when you deposit them. The Drip token can vary in price from day to day, so your dollar amount returns depend on the Drip token’s price.

For example, let’s say you bought 100 tokens at the cost of $10 per token. You then deposit your tokens into the application, your token amount would be 100, and the deposit amount would be $1000.

The Drip Network will generate 1% of the Drip token amount each day, which would be 1 token per day, and at the end of the year, it would have generated 365 tokens. It doesn’t guarantee $10 per day, and it doesn’t guarantee $3,650 at the end of the year. That is ultimately determined by the price of Drip.

How is it sustainable?

Drip is sustained by an extensive tax system. There is a 10% tax on deposits, claims, sales, airdrops, and when you buy from Pancakeswap. There is a 5% tax on compounding, and there is no tax when you purchase Drip from the website.

Nobody can confidently say if this is actually sustainable for the long term. I’m sure there are mathematical equations out there that could give a reasonable estimate of the tax system’s sustainability. Still, so many real-world factors come into play that it’s nearly impossible to predict.

Is Drip a scam or a fraud?

I want to define both terms to set a baseline understanding. A scam, according to Merriam-Webster, is to deceive and defraud someone; to obtain something by deceiving. Fraud is the crime of using dishonest methods to take something valuable from another person.

The central theme in both terms is the act of being dishonest or deceitful; Drip is the complete opposite. The Drip token and the Drip Network’s code are online for anyone to see, and the code can’t be changed. The code has been audited by Slither, a company that reviews the code and makes sure that there are no security flaws, private functions, or anything malicious that could cause fraud.

Is Drip a Ponzi Scheme?

According to Investor.gov, seven red flags, or characteristics, make something a Ponzi scheme. Let’s go through them.

  • High returns with little or no risk — In Drip’s whitepaper, it does say the Drip Network is a low-risk, high reward contract. I would mark this characteristic as valid.
  • Overly consistent returns — The Drip Network generates 1% of your deposited Drip tokens, but it doesn’t guarantee any returns on the dollar amount you deposit. I can see both arguments as to why this can be true or false, but for the sake of being unbiased, let’s put this characteristic down as valid.
  • Unregistered investment — Most, if not all, Crypto assets aren’t registered with the SEC. I don’t think this rule can apply to any crypto-asset, so I will leave this null.
  • Unlicensed Sellers — Just like the characteristic above, it’s hard to say since DEXs aren’t technically registered to my knowledge but are the only way to trade assets in the decentralized space. I will leave this null since it’s in the grey area.
  • Secretive, complex strategies — All the information on Drip is publicly available for anyone to access. Learning to set up and use defi wallets can be complicated, but operating the Drip website is relatively easy once you get decentralized wallets down. I would put this characteristic as false.
  • Issues with paperwork — The Drip Network runs on the blockchain, which means all transactions are public and easy to track. I would put this characteristic as false.
  • Difficulty receiving payments — On the website, you can see the amount you have available to you, and you would need to click one button to cash it out. I would put this characteristic as false.

Two characteristics were confirmed in the final tally, two were voided out, and three didn’t match. Your answers could be different, depending on how you consider the two voided characteristics, but I tried to be as unbiased as I could.

Is Drip a Multi-Level Marketing Scheme?

Consumer.ftc.gov gives four warning signs of a pyramid scheme.

  • Promoters make extravagant promises about your earning potential — This warning sign is valid. I’ve personally written and read many articles on great earning potential.
  • Promoters emphasize recruiting new distributors for your sales network as the real way to make money — This is invalid. Yes, growing your team can speed up the growth of your investment, but you will still get to the same place even if you add no one. Building a team is a feature, not the rule.
  • Promoters play on your emotions or use high-pressure sales tactics, maybe saying you’ll lose the opportunity if you don’t act now and discouraging you from taking time to study the company — This is invalid. From personal experience and many articles that I’ve read, many people take their time researching Drip; I spent almost a month researching as much as possible before joining.
  • Distributors buy more products than they want to use or can resell just to stay active in the company or qualify for bonuses or other rewards — This is invalid. You don’t need to keep buying Drip to receive your 1%, and you aren’t pressured to put in a large amount. You can start with $100 and still end up at the same place as someone who started with $1000.

One of the four warning signs matches the Multi-Level Marketing scheme. You could’ve come up with different answers than I did, but from all available evidence, that is what I concluded.

Final Thoughts

This article was a little long, so I appreciate it if you made it this far. I made my best attempt to stay as unbiased as possible while giving as much information about Drip as I could. Did I succeed? I don’t know, but I do want to say I enjoyed writing this article, and I hope to turn “Unbiased Talks” into a series or maybe into a publication where anyone who wants to share an unbiased view on any topic can.

See, I write because I like to tell my story and speak my mind; everyone who writes wants to tell their story, and there is absolutely nothing wrong with that. But, in a world full of opinions, the truth can get drowned out sometimes, and that’s one of the things that I hate about the world we live in. It is damn near impossible to get unbiased information, so I hope I succeeded in writing some.

I hope this article helps you decide whether or not to invest in Drip. If you have any questions or want any clarifications, please feel free to reach out to me anytime, and you can message me here on Medium.

If you do decide to join the Drip Network, please consider using my buddy link: 0x88C4c81c7411C45458f4E6ed6a5FA4fb166A2Dca. I do weekly airdrops and birthday airdrops, and sign-up bonuses for using my link.

The content is for informational purposes only; you should not construe any such information or other material as financial advice. There are risks associated with investing in Cryptocurrencies, so do your research and never invest more than you can lose. The author does not take any responsibility or liability for any investments, profits, or losses you may incur due to this information.