As a big fan of the Back to the Future movies I always liked the imagination of journeys across the time. If you never watched these movies, you missed something so far. Go and check them out. They are great.
Today we don’t want to talk about the movies. Today we will ran an simulation on what would have happened with a Drip investment deposited at the very early stages of the platform. The article I published yesterday inspired me to ran this simulation. Lets jump back in time. To 31st July 2021, to be precise. The Drip token sold for 31.54 USD according to coinmarketcap.com. Let’s invest into it.
By today we would be invested into Drip for 397 days. Everyday would have provided 1% of profit so far. Lets also assume we never claimed our profits, but re-compounded every single day. Even if that wouldn’t be the case, our analysis here showed us, that the delta wouldn’t be that big. There is no downline for simplicity. How would our investment look like today on the 31st August 2022?
Below you see 3 scenarios, the only difference is the initial investment amount: Once with 100 USD, 1’000 USD and with 10’000 USD. We bought the tokens on 31st July and claimed our first reward on 1st August 2021.
Even by the current low price of 7.69 USD per token we would still see an increase of around 11x in 13 months time. I think this is still very impressive in the current market environment. The daily reward claimable would be also quite interesting, depending on your initial investment of course! You could for sure make a living out of this money, if you would have invested more then 10’000 USD originally.
Conclusion
The key factor with Defi investment like Drip, or Furio, as we talked about the other day, lies probably a) in time, you have to invest as early as possible to profit from the re-compounding effect as often as possible. And b) your investment needs to have a certain size. Investing only 100 USD into Drip even at the very first day, doesn’t make you a millionaire nor allows you to claim a decent salary regularly from the system. No risk, no fun is coming to my mind. Seems like this is or better was the case here too. Looking backward is always easy, I am aware.
So is it too late to invest and profit in the long term? I personally don’t think so, that’s why I joined the system a short while ago. But you have to decide that on your own, if you like to join me and many others on that journey too.
I joined the Drip community exactly 14 days ago.Lets have a look how my investment did within these two weeks.
Recap: On 16th August I bought 10.65 Drip Tokens by investing 100 USD into Drip (article here). I deposited the tokens obviously into the Drip Faucet to profit from the 1% daily reward the Drip system is providing. The token price was around 9.70 USD on that day. How do things look like today?
Token price
The Drip token came down in price like pretty much all the other coins and tokens as well in the last few days. Bitcoin was around 23’900 and is this morning around 20’300 USD. Drip was around 9.70 and is now at 7.67 USD. So the token itself lost around 20% in value itself. How much did my overall investment in Dollar decrease with the (almost) daily compounds?
I do currently own 12.08 Drip tokens. So I gained additional 13% in tokens by the compounding mechanism. Which makes sense, as I compounded 1% every day in the evening, but not yet today, as it is only in the morning. So straight profit of 1% for every single day.
What about the value in US Dollars? As we saw above, the token price decreased to 7.67 USD. This is a reduction of about 21%. My tokens increased by 13%. And given these numbers my overall investment is worth 92.65 USD. This is a loss of a bit more then 7% at the moment.
Conclusion
I probably didn’t enter the market at the best time, as the Drip token value decreased pretty much soon after I joined. That happens always to me. To you as well? As everybody knows, you will never hit the perfect timing in any market cycle, so I (and we all) where aware of these risks (read my article here). I actually I think the daily compound is a good mitigation measure against the current bear market. Perhaps not in the short term, but I am pretty sure that this will play out well in the long term. I am very interested to see how this plays out going forward. Update will follow.
Will I increase my investment? Like with all my other coins I will probably DCA (Dollar Cost Averaging) into Drip too to bring my average buy price further down. You might do the same on your end, if you are already invested. And if you are not yet into Drip, this could be a good time to start and earn some passive income.
MetaMask is the pretty much the standard if it comes to storing crypto currencies. As per their webpage, over 30 millions of users are using. This tutorial is for beginners.
What is MetaMask
If you are new in the crypto currencies world, you are probably overwhelmed by the number of options and wallets available and you might not be sure where to start? Right? No worries, I got you covered. Here you will find an easy step-by-step guide on how to install the MetaMask wallet to store (many of) the coins and tokens secure.
MetaMask can store all of the ERC-20 tokens. ERC-20 tokens you said? ERC-20 is a expression from the Ethereum vocabulary and defines a standard for all fungible tokens. You might have heared about ETH, BNB, Drip. There are many, many more. All tokens from the Etherum blockchain, from the BNB blockchain and all blockchains based on Etherum can be stored in MetaMask. It is a lot. Hence, MetaMask is a good starting point. But enough of the technical stuff, lets gets back to the basics and start with the installation.
Download MetaMask
Make sure you download the extension only from the official side. Navigate to www.metamask.io and click on the button “Download for <your browser>”. I am using Firefox, hence that icon is showed. This will guide you to the extension repository of your browser. Click “Add to Firefox” or “Add to Chrome, if you are using Chrome. And then endorse again, if your browser ask to confirm the installation. Your browser will confirm, that the new extension is added. Click “Okay”.
If your MetaMask extension got installed successfully, you should see a little Fox icon at the top right corner in your browser. Together with all your other extensions installed.
Great, now you got MetaMask installed, now we have to create your personal wallet. The installation might look a bit lengthy, but that is only because I added a screenshot for every step to guide you safely through the whole installation process.
Create your wallet
Click on the MetaMask item and a page like the below will load. Click on “Get started”.
As the next step, the MetaMask developer ask you if you like to provide data to improve the product going forward. Up to you, if you like to send your data or not. I would argue it is safe, but at the end it is your decision. Click either on “No thanks” or “I agree”.
As the next step, you click on “Create a wallet”.
Next you have to define your password. Make sure you use a complex password, a mixture of upper and lower cases, numbers and special characters. Lengthwise go for at least 12 characters. Yes, harder to remember. But for sure more secure. And you like to store your digital money here and you like to sleep well during the night. Convinced? And to make thing even more secure, do not store the password on your computer. Don’t take a digital picture of it. Write it down on a piece of paper and store it somewhere safe.
Click on “Create”.
Then a learning video about the Secret Recovery Phase follows. I highly recommend to watch it.
After you watch that video, you will get your personal Secret Recovery Phase. Click on “Click here to reveal secret words”. As the text says already, never disclose this phrase to anyone. Never. No matter who asks.
Treat the the Secret Recovery Phrase the same as your password: Do not store this phrase anywhere digitally. Only on a piece of paper. Keep it as safe as possible.
After you wrote that phrase down on your piece of paper (and again, not digitally) MetaMask asks you to confirm your Secret Recovery Phase. Just click all of your words in the correct order to ensure you got it written down correctly. Once you clicked on all the 12 words in the correct order, click “Confirm”.
If everything went fine, you are the proud owner of your personal MetaMask wallet and are ready to store your coins in it. Congratulations. Click on “All done”.
You will find your wallet address below “Account 1”. Many numbers. No need to remember it. My test wallet for this article is “0xdA194DD3815C41DC8deB96FbEDd13778C7417B9d”. Whenever you need it, like to send some coins to your wallet, you can copy it by simply clicking on it.
Adding BNB Chain
So you got now your wallet ready and it is connected to the Ethereum Mainnet. We will now add the Binance BNB Chain, as one of the most popular Blockchains. I am following the guide from the official Binance website:
Click on your MetaMask item in the top right corner of your browser, click on “Ethereum Mainnet” and then on “Add Network”.
The below screen pops up. Fill in the information as per the screenshot I took for you. You can copy/paste the information from below. Or copy it from the Binance page I linked.
Once you filled in all the information, click on “Save”. And done. You are now connected to the BNB Chain. You can choose your network by simply clicking on MetaMask icon and then on the current network and select the one you need in the menu popping up.
Whats next?
The next step is then to transfer some tokens to your MetaMask wallet and trade for the first time. We will cover this topic in one of our next articles soon.
Comments about such beginner articles are highly welcome and appreciated. Too challenging? Too complex? Too lengthy? Let me know. Thanks for reading.
You might have followed my Drip journey in the last few days. And as we are already on the road through the Defi landscape, why not just visit another popular destination, which got quite some traction lately. Some of you might guess already, what I am talking about. Yes, you are absolutely right: Lets also stop by at the Furio Website.
What is Furio?
That is the main question we like to answer today. I don’t know much about it either yet, so lets explore it together. If we navigate to the the website, we see in big bold letters
Sustainable Taxation
Team Building Referrals
Compound Interest
Deflationary Tokenomics
Variable Up to 2.5% Rewards System
Anti Dump Mechanics
Some of the points sound very familiar compared to the Drip system. It is even mentioned in the Furio FAQ that Drip had a big influence when the system was designed, of course the team implemented improvements given the experience gained with Drip. Some of the features sound very promising already. So lets look at all these points in further details and see if they really deliver on their promise. Lets have a look at the Whitepaper. Furio in a nutshell so far:
A deflationary token providing daily rewards up to 2.5%, low(er) taxes as it sounds like, and a referral system. So far so good.
The Whitepaper in summary
Before going into the details, I have to mention that the Website and the Whitepaper look stunning: Great design, great layout, very well marketed overall. Lets see what is behind the great design and lets dive a bit deeper and collect some facts about Furio.
My intention at the beginning was to go into every detail of the Whitepaper, but this would be way too much for a single article. So I keep it high-level for the moment and will go into the details in separate articles. Besides the high level overview we will look only a bit closer at the variable reward system, which is probably the most interesting part for most people.
The $FUR token is a BEP-20 token which sits on the BNB chain. I guess that makes it very easy for most people to join the system, as the BNB chain is very popular nowadays and people interact with it on a regular basis. All Drips users as a potential costumer base are on the BNB chain already.
It is mention in the Whitepaper that the $FUR token got a maximum supply of 1’000’000 token, which should create scarcity. That’s what is written on page 3. If you jump to the next page, you can read that should the tax pool get into a rare situation and run out of liquidity to pay the rewards, there is the option to mint new $FUR tokens. So it sounds like the 1 million limit is not really set in stone as it was stated earlier on.
Furio.io got its own swap function called “Furswap”, where you can buy and sell the $FUR tokens. You need USDC for these transactions.
The “Furvault” seams to be the heart (or brain?) of the system where you deposit your purchased $FUR tokens and also claim or compound your daily return. This sounds pretty much like Drip. The difference is that the daily return is not fixed. The daily % varies between 0.5 and 2.5% depending on your compound and/or claim schedule. Lets have a closer look at this further down.
Also Furio got a maximum claim limit like Drip: Here it is either 360% of your initial principal amount or 100k max. payout through compounding.
Furio’s liquidity is provided via FUR-USDC on Pancakeswap
Taxes are also the blood of the Furio system and that’s how the rewards are paid as we learned above already. Taxes are applied on most of the transactions one can do and are mostly 10%. Only exception is if you compound your reward. There are also Anti-Dump-Mechanics involved which are literally very high tax rates (up to 50%) if you sell more then 25% of your tokens. This is especially designed to ensure price stability. Furio got also a burn mechanism implemented applied on most of the transactions, as you see on the image below, making it a deflationary system. On the usual transactions the following taxes apply:
If you are planning to build a team, a team wallet got a least 5 members, you need to purchase NFTs to get rewards from your down line. How many NFT’s you need depends on the depths of the down line. It is actually quite simple: For each level you need an NFT. If your downline got 3 levels, you need 3 NFTs. If you got a huge downline of 12 levels, you need 12 NFT’s. The round robin system applies also on Furio.
Furio got also quite an interesting roadmap within their Whitepaper which lays out many deliverables planned in the coming months or even years. This includes milestones like buying $FUR directly with your credit card, an NFT marketplace and also spreading the Furio ecosystem to further blockchains beyond the BNB chain. Quite interesting stuff to be honest. This should hopefully add real functionality to the token, which should help in its price going forward.
Alright, I think I have covered the most important aspects of the system on a high level. If not, please comment below. Which is always appreciated. Lets have now a closer look at the reward system as promised.
Variable reward system
So Furio promises daily rewards of up to 2.5%. To really achieve this 2.5% you have to meet a few criteria around your compounding schedule. I think the message from the table below and with that from Furio is pretty clear: The more you compound and the less you claim, the more reward you are paid. Or in other words: Remove no liquidity (or as little as you need) from the system and you will get rewarded accordingly.
So what happens if you compound only once a week? I mean, not everybody thinks about compounding their rewards on a daily basis. At least I don’t. The answer comes also in the White paper. Let me include it for you:
New participants will start at 6:1 1.75% but go to 1.0% if they break this pattern before the 28 day cycle is complete.
Positive participants over a rolling 28 days will be guaranteed a minimum of 1% rewards.
Positive participants with over 20 rolling compounds in a 28 day rolling period will increase to 1.25% rewards.
Positive participants with over 24 rolling compounds in a 28 day rolling period will increase to 1.75% rewards.
Positive participants with 28 rolling compounds will increase to 2.5% rewards.
So you really have to compound pretty much on a daily basis to reach the 2.5%. Well, also the 1.75% sound enough interesting suddenly….
What concerns me a bit is the following part:
“Negative participants will be penalised and once you drop to the lower level you CANNOT come back up. Beware the system penalises bad participants, you have to have been a bad player for a period of time before you are penalised, you will then stay in the project at the lower levels.”
I assume that does not count if you forget to compound, but if you claim too regularly. It is also clearly stated that if you claim 7 days in a row you will be taken straight to 0.5% level. So keep that in mind. Crucial to keep that in mind.
Conclusion
So Furio seems to be an interesting player in this compound system landscape. It got some juicy improvements over Drip, some measures to protect its revenue streams, which seem to be pretty strict even I have the impression. I guess, time will tell how successful the system will be over time.
Will I invest? Well, I got now a high-level overview of the system, I hope you too, but will dive deeper into its functionality in the coming days. In a first step I invested a tiny amount to get more familiar with the system and will at the same time invest more time into it. Will I invest further money as a second step? Quite possible. To be honest I really like some aspects of the system…. more Furio articles to follow soon.
Referrer link
Yeah, you probably expected it: If you also like to follow me on that journey to destination “Furio”, please feel free to use my referral link below. Thank you.
Today we look at getting the maximum out of the 1% daily reward and how often should we claim. I am aware of the more complex strategies, but lets have a look at the simple technics today and cover the more complex strategies a bit later in our series.
So Drip pays out 1% on a daily basis on your deposited tokens in the faucet. So the more you deposit, the higher your reward. Have you read about compounded interest? Or interest on interest? This is exactly the big power of the system. The more often you compound, the higher your reward gets. You deposit every day your reward, your deposit increases and so does your daily reward. Exponentially.
But what happens if you re-compound just every other day, or weekly or even only once a month? How big is the difference in profit?
I did the calculations for exactly that.
The table above shows you the number of coins you will end up with if you re-compund daily, weekly or monthly with an initial investment of 10 Drip tokens. To my surprise the difference is not as big as I expected it to be. Of course you got the most profit out if you re-compound as much as possible. But you got also the fees you pay for each transaction. I ignored those for simplicity here. But as you can see, if you spend only a few minutes a month and re-compound only once every month you end up with only about 8% less coins after a year. With way less effort then pressing the buttons every day.
Conclusion
Daily reward is nice. Daily re-compound means you have to think about it each and every day and go to the faucet and claim. And pay the fees. To make it closer to passive income I think it is enough to re-compound just every other day, not having to think about Drip on really a daily basis. Unless you really enjoy. Then please, go for it.
Lets continue on our Drip journey. Today we will look at the risks involved when joining the Drip network. Shall we?
Rug pull
As your initial investment is locked forever, the devs could just run away with all the funding deposited and enjoy the rest of their life. Given the fact that Drip is already operating for over 12 months successfully, I would rate his risk as very unlikely. Rug pulls usually happen at the very beginning of a project, shortly after the tokens are sold, all the investors are full of hope, the price of the token is shooting up and ….. the team with the money in their pocket runs away. As said, very unlikely at this stage of the project in my humble opinion.
Tax pool liquidity
What happens if the whole system runs out of liquidity? Lets remember the Drip whitepaper: All transactions are taxed with a 10% fee. There is even a whale tax applied. Initial investments are locked. So all new buyers add liquidity, all transactions provide liquidity. But never the less, the system has to provide 1% reward on a daily basis. This sums up exponentially. Even if the price chart shows that some momentum is back in Drip, all the transaction fees need to still take care of all the daily rewards. So in my opinion this is the biggest risk in the systems and with the highest likelihood in my opinion.
As per the white paper there is the option, if the tax pool should ever be in the situation where there are not enough Drip tokens available, that new Drip tokens can be minted. This would be then an inflationary measure, the overall Drip volume will be increased, which would lead as to the following risk.
Token price
Well, I guess this risk exists with all crypto investments. No matter how many tokens you earn over time, if the price goes down to zero, your investment is also worth zero. How likely is that? Lets have a quick look at the current price start since Drip’s launch:
As you can see, Drip’s all time high was around 160 USD. Currently the price is less then 10 USD. The price went even up from 5 to 10 USD recently. How likely is it nowadays that the price goes to 0? Unfortunately I do also not have a crystal ball as well, and a price drop is again possible. Although I think chances of profiting are at this price level way higher then loosing again. Even if the price falls down in the short term, with the compounding feature one should still earn money if the entered the game at such a low price. So price drop short term is likely, but mid to long term I see this also as unlikely.
Is there any other risk out there which is not listed here? I would appreciate to read your feedback. Lets learn together.
Mitigation measures
So what can we do to minimize any potential loss? I guess the general rule for all investments applies here too: Invest only money you can afford to loose. Not more. And in addition, to not always re-compound your rewards, but take some profits from time to time as well. At least that much to get your initial investment back. You can use this to start the next project.
Or in other words: How to claim your first daily reward of 1%. So pretty much 24 hours after my initial deposit, my reward is ready to be claimed. Or, as we like to increase our rewards going forward, we will not claim, we will re-compound the profit to increase our deposit and get a slightly higher reward in the next 24 hours. Ready?
How to compound
The process is pretty easy and straight forward. Let me show you. As a first step go to your Faucet site and connect your wallet if not done yet. The dashboard shows you at the top left corner how many Drips are ready to be claimed. In my case I earned 0.129 tokens on the first day. In USD this is 1.27 USD. Remember my article here, where I stated that my initial investment was about 100 USD? Bingo, roughly 1% of reward. Not bad, huh?
Now lets re-compound our earned tokens by clicking on the “Hydrate (compound)” button on the right hand side of the faucet side. Your wallet will ask you to confirm the transaction, approve that, wait a few second until you see this screen:
Congrats, you compounded your reward. Our deposit increased and the reward will be calculated on the increased amount.
And that is it already. This should be your daily (or every other day) routine as Drip community member. And passive income earner. Lets increase you investment and earnings going forward.
As Drip supports a referral system where you can earn from your downline, your team. In order to receive these referral rewards, you must hold BR34P tokens in your wallet. Just in your wallet, not staked or deposited somewhere.
Depending on the size and structure of your team, you need a certain amount of BR34P tokens. The bigger your team, the more tokens you need to own. Here is the requirements from the whitepaper:
BR34P token requirements
Examples
Lets assume you have a team of 5 members. One of your members referred another colleague. So from your perspective you got 2 Levels and would need then 3 BR34P tokens to be eligible for the rewards from both levels. Pretty straight forward, no?
Timing is crucial here: If you don’t own the required number of tokens by the time one of your team members make a deposit or re-compounds, you are not eligible for the reward. So make sure you have them ready when planning on building a team.
Where to get the BR34P token
You can buy the BR34P token as any other token on Pancakeswap. Just make sure you enter the correct contract number of BR34P into the system when buying. Checking CoinMarketCap this is 0xa86d305a36cdb815af991834b46ad3d7fbb38523. Please verify yourself that your are buying the correct token.
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Yes, I joined finally the Drip community and bought my first tokens. Why now?
Introduction
First lets start of with what Drip actually is. As you are reading the article I assume you are either familiar with Drip or you at least heard about it. Either as life changing money maker providing a 1% daily return or as scam and ponzi-scheme where you loose all your money.
So in other words: You either hate or love it. As always there is not only a black and white view, there is much more to it.
Captures value by being scarce, deflationary, censorship resistance and being built on a robust decentralized blockchain
Got its own little exchange under the “swap” tab waiving buy tax
Deposited in the faucet will provide a consistent 1% daily return
Liquidity provider options by providing BNB
10% on all transactions
Referral system to manage your team (eg. like aidrops) and earn from your downline
BR34P token required to earn from your downline
So the heart of the system is the 1% daily return, which can be claimed or hydrated (compounded). This gives huge returns over time due to the compounding effect. That is exactly what I will start reporting about, like I did with HNW Raffinery. But more often. Promised.
Why did I buy now?
Well, looking at the price chart of the token it came down quite a lot. Drips all-time-high was at around 160USD. Today the price is below 10 USD. There seems to be some momentum coming back to the drip token as its price increase from 5 to 10 USD. Also I read about marketing campaigns that are getting started. Hence I thought the time is actually good to buy my initial investment.
How to start earning
So I started by buying some Drip tokens on the Fountain Swap. 10.65 to be precise, remember the 10% tax on all transactions. So around 100USD deposited at current price level. Just for the records.
Get a Buddy: As I read from so many sources about Drip in the meantime I didn’t want to select a single buddy, but ignore all the others who provided valuable content. That would be unfair. So I decided to use the overall dev wallet as buddy to support further development and marketing of the network and community and support everyone with that. (Does anyone know if this has any negative impact one way or the other? I couldn’t find anything related to that).
Then I deposited the 10 tokens in the faucet. Now it is time to wait and claim my reward tomorrow. Or the day after. Depending on the fees I pay… but hey, I am ready to make millions.
