My goal with this blog series is to present my personal journey with a "high stakes" investing option. I personally heard about Ethereum Capital around 1 week ago, did some research, and decided to invest 3 ETH into it. I want to be clear, I am not a financial advisor, what follows is my personal experience and should not be taken as financial advice; what you do with your money is up to you. My personal goal, through monthly reinvesting, is to eventually get to 1 ETH in dividends daily through this smart-contract.
So What is Ethereum Capital?
Ethereum Capital (or Ethereum Gold) is an Investment dapp which claims to provide, "Life-Long Passive Income Ethereum Dividends." This is not a Charles Ponzi first-in, last-out, multi-level scheme. There are no "levels", everyone is on the same footing under an unalterable smart contract.
Here's how it works, you purchase Ethereum Credits to buy into this smart contract with Ethereum. Like any block-chain currency, the value of Ethereum credits fluctuates with the flow of users using it. 20% of your investment is taken off the top, and split in half. The first 10% is then immediately distributed among all stakeholders proportional to the number of Ethereum Credits they own. This is where your dividends come from, whenever anyone invests into Ethereum Capital everyone receives a small dividend. Similarly, when you sell your credits the other 10% is then proportionally split among the remaining stakeholders.
Additionally, the smart contract is completely unalterable, it cannot be removed or changed, the creator cannot even get in to the contract to change anything; therefore, the contract itself is completely decentralized and fully relies on those who are interested in using it.
I personally prefer the Ethereum Capital website, it displays everything in USD (and is a little cleaner); however there is a mirror site—Ethereum Gold—which displays your earnings in ETH. Both sites are connected to the same smart contract, which you can view here; you can also find additional information on DappRadar here.
My Five Days Worth of Experience
I decided to invest 3 ETH into Ethereum Capital, therefore 20% was taken off the top, giving me 2.4 ETH worth of Ethereum Credits (175.021 credits). During the first 24 hrs I earned 0.078 ETH in dividends; that was 2.6% of my initial 3 ETH investment in one day! That particular day saw its highest number of daily users ever, so I have to chalk that day up to luck and the 2.6% gain should probably be viewed as an outlier. Moving on from there, days 2-4 saw returns of 1.23%, 1.10%, and 1.40% respectively. Today, on the other hand, seems to be a slow day for I've only gained 0.33% in dividends. Presently I've earned a total of 0.20 in ETH, that's 1/3 of the way in recouping the initial 20% paid upfront.
The Raw Data
- August 3rd and 4th I didn't track the current value of the ETH Credits, and subsequently can't project a true "cash out" value.
- On a side note, today if I sell my 175.021 credits I would get about 3.59 ETH, add in the 0.2 I've gained in dividends and that's $1,470.77 (a 27% gain currently on my original investment). However, cashing out is not my goal.
My Goal and Plan
My goal is to get to the point where I'm earning 1 ETH per day in dividends. To do this I will be reinvesting my dividends on a monthly basis, slowly increasing my holdings.
Currently, I'm averaging 0.040 ETH a day (or 1.33% of my initial investment) in dividends. If this continues over the next month I could potentially earn a total of 1.16 ETH in dividends by September 1st. After reinvesting that amount, my daily dividends could be around 0.055 ETH during the month of September.
Projecting out possibilities more than 30 days is pointless from only 5 days of data, but the average currently shows that by 2/1/21 I could be earning 0.3 ETH a day.
Transparency and Concluding Thoughts
First, I'm not advising anyone to invest, I'm just providing my personal experience using Ethereum Capital. If you do decide to invest, the links in this article contain my personal referral providing me 3.3% of your investment while the remaining 6.7% (of the distributed 10%) is then divided among the remaining investors. You of course do not have to use my referral; but if you do, thank you.
Second, I will be posting my next batch of raw data on Monday 8/17/20 and then every two weeks moving forward.
We'll see how close my projections come and whether Ethereum Capital is a good long term investment or not.