Nice to see Bitcoin move a bit this weekend, eh?
Only slight gains, but at this point, we’ll take even a DROP in the bucket.
With the marketing DROPPING, every little bounce gives a reason to drink some more whiskey :D (although, a bear market also makes us drink….)
ANYWAYS, if you couldn’t guess from our awesome DROP play on words, today’s review is: Dropil.
Let’s dig in…
Dropil (ticker: DROP)
Wtf is this shit?
Dropil is an Ethereum based project, with DROP as its associated ERC-20 token. Its mission is to be a reliable autonomous trading platform.
The three main features it offers are autonomous trading, arbitrage analysis, and a smart wallet.
It’s all pretty self-explanatory.
The autonomous trading features allow users to upload funds and take advantage of easy-to-use tools. Confusingly, they call this their “Dex” system (not a decentralized exchange), but yes Dex. They use in-house algorithms to yield you the most (if any) profit. They go into some detail about how they asses risk, use different bots for different markets (meaning one bot runs only on one exchange on one market), hence they use many different algorithm types.
The arbitrage analysis system is more of a signal and monitoring system. It will show you different opportunities, spreads, and potential ROI opportunities. The name for the system is “Arthur.”
Then there is the smart wallet, which is really a wallet to store coins, with added information about your portfolio. The name of the wallet is “Max” and it allows you to keep track of your portfolio along with profits or losses. You can also set up recurring payments, which is pretty cool in this space.
You can withdraw your funds at any time, which is good and they are generally realistic about returns (not guaranteeing), but they say 2-6% month which is really solid still…(60% a year with any degree of certainty is good). Every 30 days they pay out, and you need your funds in there for 30 days to get your return.
Now...we’ll be honest, we are not a fan of these overall. It is not that we are against robo-advisors such as Betterment, but we do question these types of Ethereum based projects. Dropil’s whitepaper is weak. It is pretty soft and has arguments that we disagree with. They claim that cryptocurrency has barriers for investors….but, they’re wrong, or at least worded their position poorly. They claim you often need $25k+ minimum in order to day trade. While this might practically be (kind of) true, it is not a requirement by the exchange. If anything crypto has the lowest barriers of entry with negligible trading fees, no monthly maintenance fees, and no requirements for how often one needs to trade. The ONLY use of the Drop token is to gain access to the Dropil featuers and to be honest, this is a BS utility that we are sick of hearing about. It’s just a forced ‘token’ in our opinion, even if the business model may be sound.
They also preach that they are privately funded...which is great, they should be, but they also did sell tokens through an ICO (raised ~$60M!). It seems forced from utility of the token to the general use of Ethereum..why do that? Just create your own platform that isn’t dependent on Ethereum and run a business...no? It is worth stating that we DO NOT think they are scamming, and we do believe they are honest. They also have a nice UI, it's just the principle of a making a token for the heck of it.
It is time we become critical of the utility of these tokens.
Who tf is behind this shit?
They have two founders: Zachary Matar and Jeremy McAlpine. They are both young, completing college in 2015 and 2016 respectively. They both have a background with developing and are co-founders of another active project called TruWho. TruWho is competing in the KYC/identity space like Civic and such it sounds like. They have a bunch on their plate, but are certainly active, for whatever that is worth.
All in all, mid-tier shitcoin due primarily to current market metrics and community. At the time of this writing, Dropil sits at #87 on Coinmarketcap...pretty high. We wish them the best of luck...even if we question why they ICO’d..
Hope you learned some shit and make sure to follow us on Twitter!
- Mike and Aaron