According to ZoloUs, people should be free to pursue their hopes and dreams without having to worry about their bottom line. The project aims to accomplish this using scheduled distribution of their cryptocurrency token, Hydra. After reading the whitepaper, I must admit that the project seems great on the surface. There are, however, some issues I feel obligated to mention regarding the sustainability of Hydra as an asset.
First, let's break down how the project works. When a new user signs up for ZoloUs, they receive an initial 380 Hydra (+500 if they were referred by another user). From then on, the user receives an additional 380 Hydra per daily login. At the time of writing, Hydra is not available for trade. The ZoloUs mobile app is scheduled to release in December, at which point Hydra will be listed for trade on exchanges that have partnered with the project. Users who refer new members will receive 500 Hydra per referral.
According to the whitepaper, Hydra's projected value at launch will be USD$1.20. A ZoloUs Staff member confirmed that Hydra will not function as a stablecoin.
Shortly thereafter, I was blocked from posting in the ZoloUs Telegram group. ZoloUs's "Terms of Conditions" page includes the following exerpt: "The ZoloUs Foundation Inc. reserves the right to penalty and/or exclude any people who abuse, disrespect, offend the team and the members of the ZoloUs through messages or posts on various communication channels, website or social networks."
I can only assume that, if I violated this term, it was because I made the following observation:
If Hydra is not a stablecoin, then its price is not fixed and is therefore subject to the rule of supply and demand in the marketplace. Because Hydra is freely distributed in large quantities to all users equally, then when it enters the market, there will almost certainly be a massive initial wave of people attempting to sell the Hydra they have accumulated in the months leading up to launch. This overwhelming sale volume, coupled with no means of creating demand for Hydra in the market because it is issued daily at no cost, will lead to the price of Hydra tanking right out of the gate. I asked how the necessary demand might be created:
This is the only answer I got:
I want desperately to hope for the success of the ZoloUs project. I love the idea. I think it's a wonderful indication that there are people in the world whose hearts are in the right place. Still, I have been raised on capitalist ideals and the old phrase "no free lunch" is reverberating through my head. I don't know how this project can possibly hope to sustain an asset value that will make Hydra matter in the grand scheme of things. Not only does each user get 380 Hydra per day, but the total supply of Hydra began at 21 billion and, according the whitepaper, increases by 5% every day. This increase is held in reserve by ZoloUs, to be distributed when additional capital is needed. This proposal screams "totally unchecked inflation!"
Now that I have voiced my concerns about ZoloUs and Hydra, let me say that I actually support the fundamental ideology behind the project. I really hope that it works, that there is some sort of inflation-regulating/demand-creating protocol to be implemented (preferably one that does not function in any way like Ampleforth), and that the people behind this project aren't as naive and illiterate as they appear to be. I hope that Hydra can achieve independent value and accomplish what it aims.
Below are links to the whitepaper, the Telegram group and the signup page (my referral link). I may have my doubts about the project, but it is free, so I would be remiss if I did not do my part to try and spread the word. If, by some miracle, Hydra does not immediately crash and burn, a person could theoretically acquire over $40,000 just from the daily "Universal Basic Income" payment between now and December, at nothing more than the cost of time taken to log in each day. If not, just consider it a captcha-less faucet.