Ryan
4 min readFeb 5, 2022

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Hi Brooke!

Thank you for your feedback. It really shows you read into the article to pick out these things.

I agree with you that there are a few things that would hurt, not only DRIP, but the entire crypto market.

Regulation that either bans or regulates crypto in our respective countries could mean a great deal in terms of what we're legally able to do. In centralized finance like brick-and-mortar banks, they use our deposited money as leverage to create debt (loans) and charge borrowers an interest rate. The borrower pays this interest, say 6%, and then the bank pays out the 0.01% APR to people's savings accounts, then POCKETS THE DIFFERENCE! It's a racket. In contrast, with DE-centralized finance, banks are cut out as the "middle man" and people can earn 8-300% on their money 24/7 and the bank's never get their "cut".

These high APR's are made possible by manipulation of the rate of compounding, liquidity, as well as Forex Shark's favorite "big word" REHYPOTHECATION. This means, that DeFi platforms can partner with large DEX platforms and lend then their assets and, and in exchange for lending this adding liquidity to the DEX, the DEX rewards the platform with an interest rate paid out in the DEX's native token, in Animal Farm's case, it happens to be CAKE. Then, the CAKE is sold and used to buy the platform's token, or to stable coin, to return to investor's as the added APR.

Some platforms do not bother to buy back the native token, so that is why you sometimes see farms and vaults that will earn dual rewards - the native token AND the CAKE, for example. I think that Animal Farm doing that FOR investors is an overlooked benefit for naïve investors. One alternative would be to have lower Animal Farm APR's, be rewarded with L2 and CAKE, then be responsible for selling the CAKE at best market price. You've seen it as much as I that the average user in these Telegram groups are asking the most basic questions, meaning, they don't fully understand what is happening "on the back end" to make their lives easier. All they see is that they are either making money or not making money and are quick to complain about it. It's like complaining that a text message takes more than 5 seconds to send and not realizing how ingenious it is to even have the ability to do that!

Anyway, back to what could hurt crypto ...So, these large institutions are the ones placing heavy pressure on government to regulate crypto. In fact, 30% of US banks are already using blockchain, and many large institutions have started to suggest creating their own cryptocurrency (Goldman Sachs, Walmart, etc), so that they can participate in the cryptocurrency trend, exchange their tokens for others of value.

Also, if any crypto becomes geo-blocked by KYC in our respective countries, that would "suck" too. So, IMO, it's really important to "shill" DRIP and Animal Farm any which way we can to improve the value of DRIP. I do it with these articles and my social media ... how about you? Maybe try your hand at writing some of your own articles? :)

I'll consider amending the article to have more encouraging facts regarding the ROI calculation. But, I distinguish my articles from the flood of writers saying they will become millionaires (when?) by having a more realistic expectation of results based on my analysis.

For example, I have a good "sample size" and if the average person cannot part ways with 18 DRIP, then it stands to reason that about half of the people starting out with DRIP cannot afford to place a large balance in there (many, many have the bare minimum deposit!). And, if one were to ONLY compound, it would take a while to reach $1 M ROI. Also, keep in mind that in people's compounding calculations, that they are only accounting for compounding every day or every week, which is to say that they are never claiming. So, if someone were to shoot for these million dollar returns, YES it is possible with ANY amount of DRIP, but they would be compounding for a very long time, and not taking in any actual income (not claiming) for a very long time as well.

I think that getting into DRIP NOW would be a major, major advantage. With this roadmap that will soon be released by Forex Shark, that it could pump DRIP's price. If the minimum to participate is 1 DRIP, currently at $135, something like that, imagine when 1 DRIP is $3,000. Yes, the rest of us "ground level" folk will be sitting pretty with huge deposited balances (if the crypto market or DRIP price doesn't crash!), but new users will have a hard time with depositing the minimum of 1 DRIP. So, I'm wondering if DRIP's price ever reaches that level, they might have to change their minimum deposit rule in order to keep on attracting new capital "AFAIC."

Thanks again for reading!!! :) ~Ryan

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Ryan
Ryan

Written by Ryan

Insider Tips & Resources for passive income w/ focus on trading, crypto, and affiliate marketing. Top Writer on Medium.com for Investing and Finance

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