Drip is a cryptocurrency that provides users with a daily 1% payout for up to 365 days, funded through a 10% tax that Drip charges all users, such as deposits, claims, airdrops transfers and more.
Drip appears to be an early investor-friendly Ponzi scheme, where early participants profit at the expense of new ones.
It’s a Ponzi scheme
The Drip network is a Ponzi scheme that offers its members daily returns of 1% on any staked DRIP tokens they hold, as well as rewarding referrals with additional income. Importantly, however, is that payments by this protocol do not go on forever – this helps prevent those with large teams from amassing too much capital and driving up its price too quickly.
The Drip smart contract is designed to pay out up to 365% of your staked balance daily, via team-based referral. However, this system is unsustainable as Forex Shark can set his vault address for this project, thus manipulating tax dynamics and pocketing all revenue. Eventually it will collapse; instead it would be wiser to invest in something with greater potential such as crowdfunding.
It’s a pyramid scheme
Drip schemes are pyramid schemes that attract new participants by paying out funds from existing participants to newcomers, in effect using them to “lure them in”. Unfortunately, such systems often violate laws as they offer no real products or services and instead rely on recruiting new investors; those at the top row make large profits but as it grows deeper those below are forced to part with their funds and eventually go bankrupt.
A maximum payout helps prevent leaders of large teams from derailing the protocol by taking all available reward capital for themselves and using compounding growth at sustainable rates, thus making the protocol an enduring project.
Though 1% compounding can be great, I suggest choosing a project with a strong track record and sustainable business model to avoid losing your money if crypto markets crash. Also beware any projects offering pyramid schemes unless you fully understand all risks involved before investing.
It’s a scam
Drip Network is a pyramid scheme not because of its referral mechanism or ability to recompound DRIPs; nor even due to the generous rewards it pays. Instead, the issue lies with how it operates: when new members join Drip, their deposits generate fees that pay old users. As a result, more tokens are mined which increases Drip’s supply.
This can be an especially problematic scenario because if Drip token’s supply increases too rapidly, its price will collapse. Therefore, it’s crucial that we understand how this system operates before investing any capital in it. First step should be reviewing what’s on their project website as well as their Twitter and Telegram communities for clues as to their workings.
It’s a passive income
Drip Crypto is an innovative decentralized finance (DeFi) platform that generates passive income for users through staking rewards and yield farming. Built upon Binance Smart Chain and with user experience as its top priority, its community of supporters are active participants; their founders remain transparent regarding their intentions.
Drip differs from other staking platforms by including a 10% transaction tax to fund rewards to platform users; unlike inflation-driven schemes that pay rewards through inflation.
Drip Crypto offers a built-in referral system, rewarding participants for referring friends and family. This round-robin system rewards up to 15 levels above the initial wallet producer. Furthermore, 10% bonuses are accumulated each time someone deposits or hydrates their wallet; these bonuses may be withdrawn at any time after up to 365 days of deposit/hydrate activity – making Drip Crypto an easy way to generate high passive income streams.
