Investing in cryptocurrencies in general, and in decentralized finance (DEFI) in particular, is not for the faint of heart. Take DRIP, for example. Since I started investing in this project late last year, it has taken me on a roller coaster ride, reaching dizzying heights when price peaked at close to $200. It then dropped to a maddening low below $5. Price has recovered a bit and is now around $9. All this happened in the space of a few months. An object lesson in crypto volatility.
Given this extreme volatility, is DRIP a workable long-term investment? DRIP’s founder, Forex Shark, certainly believes so as he continues to build use cases for DRIP. But what do you say to investors who bought at or close to the top and are clearly down right now? Is all lost for them? The answer is, I believe, no. The path to profits is will be longer, but profits should be forthcoming if one plays his hand the right way. This means a combination of compounding and claiming earned DRIP at intervals. The power of compounding eventually overcomes price declines, given enough time. Future price increases accelerate the path to profitability. There are many tools available you can use to figure out the optimum balance between compounding and claiming.
Naysayers believe the price of DRIP might never reach its all-time high again. But as we have seen in the past, many cryptocurrencies have had dramatic price declines, only to bounce back to new all-time highs. Just check bitcoin’s history. Only time will tell if DRIP scales these heights again, but if history is a guide, we could see those prices again.
There are myriads of DEFI projects out there, and it is anybody’s guess as to which of them will be around in the long run. You can only do your research and hope the ones you invest in are around long-term. DRIP has a good shot at being one of the survivors, as its developers are building an entire ecosystem around it. The goal is to build use cases for DRIP that help to attract investors and make the system sustainable.
The Animal Farm is another DRIP project that is up and running, albeit after a few setbacks. The Animal Farm consists of the Pig Pen, the Piggy Bank and the DRIP Garden. These projects feed the DRIP ecosystem and allow investors to earn outside of the main DRIP protocol. Other soon-to-be launched components of the Animal Farm are PIGs and DOGs staking and farming.
Other DRIP projects are in the works including a Scratchy game, where players can buy tickets to win NFTs which can then be sold or staked to earn income, other games, and a lending protocol. The developers are also working on fiat on-ramp, which would allow DRIP to be purchased directly on its website with US dollars. This would be a big move towards mainstream adoption, as currently investors must go through several steps and use other exchanges or wallets to buy DRIP. I have written on some of these projects in the past and will provide updated information in future articles.
Forex Shark and his team are hell-bent on making DRIP one of the best Defi projects. Next level marketing is also in the works for DRIP, to get it in front of as many eyes as possible. A new user interface is being developed, on par with those of major investment firms, reflecting DRIP’s evolution from a project for Defi degens to becoming a protocol for the masses.
The future looks bright for DRIP, notwithstanding the low prices we are seeing now. Since its inception, DRIP has never failed to do what it was created to do: pay 1% of its tokens each day to holders. Those who have been in it long enough to build sizeable balances are collecting hundreds of dollars each day. Once you have reached this level price becomes more of an afterthought, as you will be making enough to gain your financial freedom, regardless of the price. Price increases become a bonus which you can use to help others gain their freedom. This is the promise of Defi, and why it has the potential to liberate the masses.
DRIP is not immune from the vicissitudes of the crypto market, but it has shown resilience, and with the vision and hard work being undertaken by its founders, it could be one of the projects that survive this evolutionary time in the crypto space. Could it be the Amazon or Google of Defi? We certainly hope so, but only time will tell.
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This article is for information and educational purposes only, and nothing stated herein is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. Please do your own research and due diligence before making any investment decisions. The author has made every effort to ensure accuracy of the information in this article, but makes no representations or warranties, expressed or implied, to its accuracy, completeness, timeliness, or correctness. The author may own cryptocurrencies discussed in this article.