Splassive Defi…Dodo or Phoenix?
Wikipedia says the dodo is an extinct flightless bird that was endemic to the island of Mauritius. One might also remember the Dodo character from Alice in Wonderland. The real dodo disappeared less than one hundred years after it first encountered Europeans, who hunted it and destroyed its habitat. It has not been seen since.
Again, turning to Wikipedia, we see that the phoenix is an immortal bird in Greek mythology that regenerates itself or is born again. The phoenix gets new life by rising from the ashes of its predecessor, which met a self-inflicted, fiery death. Hence the popular phrase “rise like a phoenix.”
By now you are probably asking what the heck does extinct and mythical birds have to do with cryptocurrency. Let me explain. Splassive is a clone of the wildly popular and successful passive income crypto project DRIP, which pays investors 1% daily and has done so consistently for well over a year. Splassive goes one up on DRIP by paying 2% of its SPLASH token daily, double what DRIP pays.
Splassive did well upon launch, with its SPLASH token price rising well above $30 and investors pouring in. But it came crashing down to earth a few weeks after launch, when a hacker drained a large portion of the funds from the Splassive vault. The developers took the project offline to fix the problem. Since relaunch, SPLASH’s price has fallen significantly and Splassive has struggled to attract new investors at the rate it did before the exploit. Hence my question: will Splassive go the way of the dodo and become extinct, or will it find new heights like the phoenix?
After the Exploit
As expected, the first thought was that the developers had rug-pulled and made off with the funds. It turned out not to be a rug pull, but a hacker exploited a weakness in the Splassive smart contract. An exploit is obviously not a good thing, but at least the project has a chance of redemption. In a rug-pull the project is gone for good.
The developers closed the backdoor that allowed the hacker in and got the project up and running again, but the damage had been done. Crypto investors are fickle, and the least sign of trouble will have them scrambling for the exits. Once Splassive came back online, investors dumped their SPLASHs as soon as they claimed them. The result is constant downward price pressure and fewer investors joining than before the exploit. As I write this article, the price of a SPLASH is thirteen cents. Yes, $0.13.
You might wonder why people are not buying up SPLASH if the price is so low and it pays 2% a day. I believe it is a matter of trust. People are afraid of investing in a project that had an exploit. If the developers can restore trust in the project, we could see investors coming back and price rising.
Splassive presents a compelling opportunity for anyone wishing to build a passive income stream. At current prices investors can command a sizeable amount of SPLASH tokens, which translates to a large passive income if the price rises. Of course, the risk that the price never recovers exists, and a great bundle of SPLASH could be worthless. As the old adage goes though, never invest more than you can afford to lose.
Here is an example of how a small investment in Splassive could lead to great returns. If you invested $500 at today’s price ($0.13), you would receive 3,846 SPLASH tokens. Depositing this into Splassive’s vault will give you 3,461 SPLASHs (a 10% fee is charged on deposits). You would earn 2% in SPLASH on your balance every day. Splassive allows you to either withdraw or compound your earnings. At a price of $0.13 the daily earnings would equate to about $7, or $219 a month after fees, assuming price does not change. Not bad for a $500 investment.
However, you could wait for the price to rise and do even better if it happened. Let’s say you anticipate the price rising to $2 in three months and you decide to compound once a day for the three months. That would give you 20,569 SPLASHs after the three months. But let’s say your predictions are wrong and the price only rise to $1. At 2% a day you would earn 411 SPLASHs on your 20,569 balance, which equates to around $333 (after a 10% claim fee and a 10% sell fee). Claiming for a month would give you $9,996 at constant price. Of course, the price could also fall further as opposed to rising, and you could lose your $500.
I would like to say that the low price means SPLASH can only go one way and that is up. Unfortunately, crypto does not work like that and the price could just as easily go down as it could go up.
We are seeing signs though that price could rise. For one, there has been a slow but steady increase in the number of persons depositing SPLASH into the vault. This can be seen on the website. At the moment there is a little over 5,000 SPLASH holders. Compare this to DRIP which has over 100K holders, and you can see the potential for Splassive. It would not take many new investors for SPLASH’s price to increase in multiples — moon in crypto speak.
To attract new members, the developers are introducing a series of use cases for Splassive. Splash Games will develop a series of games which will utilize the SPLASH token. A rock, paper, scissors game recently launched, and has brought new users to the protocol. They are currently developing other games and features which will be launched over the coming weeks and months. The team is also doing more marketing and partnerships with other crypto projects and seems committed to making SPLASH achieve its potential.
The Basics — How to Get Into Splassive
If you are new to cryptocurrencies and DEFI, here is a link to an article that discusses the tools you need to buy and secure cryptocurrencies. Here’s article on DRIP that tells you how to buy and stake DRIP. The process for buying and staking SPLASH is similar, just different blockchains and terminology. There are numerous tools and resources online that can help you understand how to get into these projects.
Splassive is built on the Avalanche blockchain, whose native token is AVAX. To invest in Splassive you first need to buy SPLASH tokens with AVAX from the Well on Splassive’s website. The Well links to Bogged Finance, which is where you will make the actual purchase. You will need to have AVAX in Metamask or another wallet to make the purchase.
After buying SPLASH you go to the TAP which is under the EARN tab on Splassive’s website to deposit your SPLASH into the vault. Before you can deposit you will need a buddy. Any Splassive investor can be your buddy, or you can support marketing and development by using the development team as your buddy. Your buddy is called a Wave Starter on Splassive. Copy and paste your buddy’s address into the Wave Starter and then update it.
Once you have added your buddy you can deposit your SPLASH tokens, sit back and enjoy your 2% per day. You can either compound or withdraw your earnings using the recompound or claim buttons.
Splassive has a referral system which allows investors to earn rewards from deposits made by persons they invite to the protocol. Investors earn 10% on deposits made by their referees. The 10% comes from the tax vault and not from the depositor’s funds. You can refer someone by giving them your wallet address, which they input as their Wave Starter when joining Splassive.
You also earn rewards when your referees compound their earnings. To earn rewards from your referrals you need to hold a certain amount of WAVE tokens, which is a sister token created by the Splassive team whose purpose is to qualify you for referrals. The number of WAVE tokens you need to hold depends on how far your downline goes. The maximum number that could be needed is 200,000 WAVES if you have 15 downlines.
DODO or Phoenix?
Now to get back to the question — is Splassive likely to end up like the dodo or the phoenix? We can look at a couple of things to guess at the outcome.
In my opinion, the most important factor affecting Splassive is investors’ trust and confidence in the project. Many investors lost confidence after the exploit. It is natural for people to become skeptical after losing money. It will take time for the developers to regain investors trust and confidence in the project.
Restarting Splassive soon after the exploit was one way to start rebuilding this trust, but it will take more than that. The team must first of all prevent another exploit, which they have done so far. The longer Splassive remains online without any issues the sooner confidence will return to the project.
The developers’ commitment to building other use cases for the project should help to draw investors to it. They are building the Splash Games and promised other developments are coming. The team’s ability to deliver on these promises will go a long way in determining whether investors return, and the project survives.
Marketing and the use of influencers to drive awareness to the project will help to decide its future. We have seen better marketing efforts recently, and the team is promising more as they roll out new use cases. Influencers are now more willing to promote Splassive as the exploit fades further into the background and they get comfortable putting their reputations on the line.
There are still worrying signs though, like the continued price drops and the slow pace of attracting new investors. These have to change for the project to turn around.
So, what is the verdict? While not giving financial advice, I believe the signs point more towards Splassive surviving and “rising again like the phoenix,” and not becoming extinct like the dodo. It already rose from the dead by coming back after the exploit. The question is whether it can sustain itself and reach, or better yet, exceed its previous heights.
Time will tell whether this will happen or not, but a successful Splassive could deliver some serious returns for those brave enough to take a plunge. The good thing here though is that an investor does not need a whole lot of money to see great returns if price were to rise.
SPLASH’s low price means it could be a bargain if the price ever recovers. The 2% a day is very compelling. We have seen many people make tremendous amounts of money by being early in DRIP, which pays 1% a day. Buying Splassive now could be an even better bargain than buying DRIP in its early days. Let the phoenix rise.
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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.