Sirwin
Sirwin
https://knowyourmeme.com/photos/2043979-hopium

The Drip Network: Crypto Scheme for the Delusional

By DeFi Demon - CryptoX0 | Defi Demon | 23 Jun 2023


 

It’s time to admit this project is failing

No amount of hopium can save a sinking ship.

Drip offers exorbitant rewards without any underlying value or utility. Its survival hinges solely on the influx of new investors and the tax system. The scheme operates like a classic Ponzi, with early adopters compounding their earnings while new investors inject fresh capital. It is a highly profitable but unethical investment scam.

A slow rug if you like. But let’s be real. It’s a perfectly executed ponzi.

A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own.

Although some argue that cryptocurrency and fiat currencies share characteristics with Ponzi schemes, DRIP stands out as an especially fraudulent enterprise. Unlike legitimate currencies, DRIP has no underlying assets or services, apart from its refferal scheme. And yes, tell me about these utilities/games that are being released *soon*.

They’ve been 100% finished for over a year now. And Forex constantly changes his mind on what’s being released and when. There was the ‘Dogs Roulette’ & ‘Pig-Pen game’ due to be released in July 2022. Somehow this was forgotten as the ‘Dogs of Fortune’ game took the lime light. Now in 2023 we’re waiting for DDD and ‘Pigs Plinky’.

Anyway. DRIP conforms to the typical pattern of a Ponzi scheme, with early investors profiting at the expense of new participants.

A scheme for kids

The DRIP white paper appears to have been written with the intention of appealing to individuals of limited intellectual capacity. The DRIP enthusiasts often criticize those who haven’t done their “research,” but if by research they mean reading the child-like white paper, then it’s alarming.

The DRIP network emerged as a fraudulent scheme in March 2021, when individuals known only by their online pseudonyms Forex_Shark and BB registered the company website, drip.community.

The devs cleverly kept themselves hidden behind cartoon like avatars.

Go on, say it. But they haven’t rugged yet.

They don’t need to rug for it to be a ponzi. New money comes in and old investors get paid. Simple. Bernie Madhoff didn’t ‘rug’. But it was still a ponzi.

The maths doesn’t add up

Initially there was meant to be a cap on the supply. But how can there be a cap on supply (which there isn’t by the way). If for every drip thats bought the user needs to get paid 3.65X there investment. That’s a huge amount of liability.

The token is marketed as deflationtionary. How exactly can something with such high liabilities be deflationary?

But Forex doesn’t make any money off drip

No, but he could. He has complete control over the contract, which is meant to be immutable.

Forex Shark can call the function setVaultAddress, allowing him to change the wallet that all of the project’s tax revenue flows into. This gives him the power to alter tax dynamics or take all tax revenue.

Additionally, Forex Shark can mint more DRIP as long as he is the only owner and has permission to do so. Like we saw this week when the tax vault was suddenly filled up.

Unsustainable system

“If there’s a situation where the tax pool is not enough to pay drip rewards, new DRIP will be minted to ensure rewards are paid.”- Drip light paper

If there is insufficient investment inflow into the DRIP scheme, the operators may generate more tokens to artificially create additional cash flow. Such actions are contradictory to the notion of a “sustainable” project and further underline the fraudulent nature of the DRIP network.

This fall back clause has been activated many times. It is literally printing tokens, that are backed by nothing, to keep the project alive. Those who bellieve this project is sustainable need to check themselves back into reality.

The Animal Farm Ponzi +

The introduction of the animal farm feature within the DRIP scheme demonstrates the project’s impending failure due to insufficient investment inflow. The animal farm operates similarly to the yield farming system, wherein users can grow seeds and animals (DOGS + PIGS) to generate income.

However, this feature appears to be just another ploy to generate thousands of dollars for the scheme’s creators under the guise of creating a fully decentralized money system where users are the owners. Despite claims of user ownership, Forex still maintains significant control over the DRIP network, save for the token injection vote, which is a paltry attempt at creating the illusion of ownership.

Drip is unsustainable, and its inevitable collapse looms. It won’t be long before the Drip Network’s value reaches $0.01. People may say it’ll be easier to become whales then. But who’s going to keep on

It seems that DRIP has no real value beyond enriching its creators and early investors. The lack of any actual utility or product is a major red flag, and the only way for the scheme to survive is through the constant injection of new money.

Look, I want the project to work. I want to ROI. But I have to admit. It doesn’t look hopeful. Even if Forex does deliver on the new UI etc. Most people have lost faith in him. Word spreads. New investors will stear clear of the platform. He’s screwed it for all of us. Which is a shame. Drip had potential.

This article was originally posted on Medium

How do you rate this article?

15



Defi Demon
Defi Demon

Defi Demon is a blog that covers all things related to decentralized finance (DeFi). DeFi has rapidly emerged as a transformative force in the world of finance, offering a wide range of decentralized financial applications and services that aim to disrupt traditional finance systems. In Defi Demon, you'll find a wealth of information on various DeFi protocols, including lending and borrowing platforms, decentralized exchanges, stablecoins, and yield farming.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.