Drip Network is very similar to what can be called a Ponzi scheme. This platform was born on the Binance Smart Chain and the Drip token surpassed $170 about 1 year ago. Today it is trading at $0.51. How does the platform work? Basically you deposit the Drip token and it generates you 1% daily so your Drip increases day by day. There are fees on deposits (liquidity is blocked) and on withdrawals (increased taxes on sales and lower fees on the re-investment of claimed tokens). It is therefore possible to claim the rewards and sell or "hydrate" (re-invest) by exploiting the compound interest which exponentially increases your deposit in Drip tokens (it is very important to underline that your Drips increase, not the equivalent value in dollars which is subject to market volatility and tends to go down due to inflation).

DRIP TOKEN
Speaking of the Drip token, how was it possible to see those prices of over $160? This was possible thanks to the very low circulation of Drip in the first months of life. To give a general example: if we assume a market cap of $1 million and there are only 100 tokens around, each token will be worth $1,000. If we always assume the same market cap of $1 million but there are 100,000 tokens around, each token will be "only" worth $10. You can easily understand how the price can be manipulated by changing the supply. Furthermore, when the supply is low (even low volumes can easily bring the price up) giving the illusion of wealth, however as the working capital increases, the price collapses. This alone should make you understand why the 365% per year is not sustainable over time (precisely because, with equal demand, that yield increases the working capital enormously, therefore the price is destined to fall over time, unless demand increases in exponentially to inflation).

WHY IS THE DRIP NETWORK A PONZI SCHEME?
The protocol bases its profits only on new entries from new users and it is thanks to these that old users are paid. The deposits of new members include fees, from which old users are paid. If no new users enter, the smart contract is forced to mint new tokens to guarantee the 1% per day, this leads Drip to increase its supply. Those who buy Drip do so only to use the protocol so it is quite obvious that if no new users enter the platform, it means that there is no demand and if there is no demand, the increase in supply inexorably brings the price to 0 Added to this is also the selling pressure of the token. When there is distrust of the markets and a platform, people are less likely to re-invest the rewards into the pool but to dump the rewards. The founders also have an unblocked supply to mint new tokens and also dump them (this can be seen by analyzing the smart contract). The "whale tax" is used to deceive chickens: while on the one hand it might seem like an interesting gimmick to limit those with large quantities of tokens (since this fee is then distributed to users), on the other hand it does not entice those with large capitals to enter.
Analyzing the platform well, one realizes that the protocol does not generate any profit other than guaranteeing 1% per day. The profit, as we have seen, is based exclusively on the income of new users who allow old members to be paid (Ponzi scheme). When subscriptions drop, the price is bound to collapse and the death spiral is triggered by the smart contract itself which is forced to generate new tokens by increasing its inflation.
Obviously those who have been able to build a network of hundreds of subscribers (because as a good pyramid scheme, Drip Network also provides boosts and incentives for those who bring friends) continue to have some income but it is evident that the majority of subscribers (if not exit in due time) is at a clear loss. The protocol can also guarantee 1% per day but if the price drops by 15% per week it is quite clear that almost all subscribers are at a loss. It should also be emphasized that once the supply has been created (due to low registrations) it cannot disappear into thin air, burns can be carried out by buying Drip on the market but with what money? The max payout of 100,000 is another red flag, as the token will be worth 0 over time (if thousands of users reached 100,000 Drip per account, how much would the total supply amount to?).

COMMUNITY
Another obvious red flag that should have made people stay away from this platform is the toxic community on Youtube, Twitter and Telegram. Although it is evident that Drip Network has been bankrupt for at least 6 months, many people continue to spam this platform (remember that they network and earn from new signups!) talking about compound interest inviting them to hold and then hydrate, to "buy the dip " (too bad there's no bottom!) or stupid examples with Bitcoin or Ethereum ("they also went down", "I bought ETH in 2018 it went down and then went back up in 2021", etc). They are naive and stupid (or in bad faith) examples. BTC and ETH are cryptocurrencies and not tokens. They do not guarantee 1% per day and are not that inflationary. If it is presumable that BTC and ETH will make new highs within a few years, the same cannot be said for Drip which cannot survive the Bear Market. The 365% annual interest causes the death spiral. To date, Bitcoin and Ethereum have lost about 3 times from their highs (BTC has gone from 69,000 to 22,000 today), while the Drip token has lost 340 times from their highs (i.e. going from $174 to $0.51 today). Taking an example, if you have invested $100,000 in BTC in ATH, today you find yourself with about $30,000. If, on the other hand, you invested $100,000 in Drips at the top, your Drips are worth $300 today. It's true, if you've auto-compounded, you have many more Drip than the initial deposit value but we're still talking about just over a thousand dollars compared to the $100,000 invested).

WHO IS THE FOREX SHARK FOUNDER? GENIUS OR SCAMMER?
Drip Network is not the classic Ponzi scheme built in 3 days but much more elaborate. Is the founder Forex Shark a genius or a scammer? If he acted in good faith it is clear that he is naive because such a platform could not be sustainable over time. If, on the other hand, he is a scammer, there is nothing more to add. It is known that he is a Ukrainian boy already incorporated in other projects called R34P and BR34P that he allegedly "resolved". Relieved we don't know from what. The "bailout" corresponds to price hikes and subsequent collapse of both tokens and their respective ecosystems. To date, R34P totals $750 in daily volumes, BR34P "even" $7,000. Both platforms appear to have gone bankrupt and with sites no longer reachable. Also connected to the Drip Network, there is Animal Farm with classic Drip/Busd LP liquidity pools. Another feature is a kind of tank called "Reservoir" which allows you to block the Bnb and half of these deposited Bnb are used to buy Drip and add liquidity to the dex. Here too there are purchase, deposit and sale taxes that are distributed to the stakers. The advice is always to use your money for something sustainable and avoid enriching the promoters of these pyramid schemes. There are hundreds of sustainable DeFi platforms (that have been around for at least 3 years) and that have a reason to exist but Drip Network is not among them.

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