The world of cryptocurrency has been expanding at a rapid rate for years, and with this, new ICO’s and new ideas are being released every single day. A common model that we are coming across more, and more, frequently is commonly referred to as the ‘lending’ model. Companies such as BitConnect (recently shut down), DavorCoin, FalconCoin, and many others are typically classified under this ‘lending’ model. Many of these companies align their “lending” to an “investment” and while investments may come in many forms the Dropil Team would like to take this opportunity to draw a clear distinction between a pure investment model and these “lending” models.
The main differences between Dropil and lending platforms can be broken down into five major categories:
- Intelligent bot
- Hold period
- Affiliate program
Each one of these categories sets us far apart from lending platforms in and of itself, but when the full picture is considered, the stark differences of a “pure investment platform” are clear. We will go into detail for each of the five categories and explain how Dropil differs from lenders. Dropil’s vision is to change the way people invest in their everyday lives by introducing safe, reliable, short-term and long-term investing opportunities through the use of a decentralized cryptocurrency.
Many of the lending platforms that are currently running or have been shut down, BitConnect for example, have made claims that they have an automatic crypto trading bot. As far as we, at Dropil, have seen, no lending platform has provided solid proof that their bots exist. If anyone has seen otherwise, please let us know. Some people have even gone as far as offering a cash reward for anyone that can provide proof that their bot exists.
What makes Dropil different is that we have a real and completely functional bot system that monitors and tracks the market 24/7. Our system diversifies itself into many different cryptocurrencies and has three separate modes that it runs based on – we call them safe, moderate, and aggressive. By diversifying into many coins and running on different levels of risk, we can balance and optimize our portfolio to its maximum potential. Please see our white paper for further details.
Dropil takes pride in the fact that our team is not anonymous and is presented for anyone to see on our “About” page. A commonly cited complaint shared by many of the lending platforms is that they (almost) never display their founders, developers, or any sort of team on their website. Many investors have noticed this and have been hesitant to invest because of this vital aspect of any emerging company. Yes, while much of the cryptocurrency world is meant to be decentralized and private, we believe that the team behind a product/service is very important. As the team and company grows, we plan to keep our about page up to date with all of the team members.
Many lending platforms refer to the hold period as the “capital return” period on their websites. Following research into a number of lending platforms, it is a recurring theme that these programs have in place a long hold period of many months, sometimes nearly an entire year. The (formerly) most popular lending platform, BitConnect, had a hold period on capital investment of 299 days for any investment less than $1,000. The shortest hold period on the same platform was 120 days for any investment greater than $10,000. There are a number of theories as to why the hold periods are in place.
At Dropil, we offer investments with NO hold period in any shape or form. We are very proud to allow our users to control their investment and their returns in any way they please. Users are free to invest, and cash out their investment at will, with no exceptions. We believe this is completely unique to Dropil as we have yet to come across another cryptocurrency investment platform that offers the same promise. Again, if anyone has seen an investment platform that offers the same promise, please let us know.
We will now take a more in depth look at the Dropil investment platform. Any user may invest any amount, in Drops, into our platform and may pull out their investment at any time. If a user invests into our trading bot, Dex, they begin earning returns immediately. We pay out our users automatically once every 15 days in Drops. Users have the option to have their returns deposited into an external wallet, their internal storage wallet, or reinvested automatically into their Dex investment wallet. Once a user makes a deposit into their investment wallet, a 15-day clock begins. If the user pulls out their investment prior to the 15-day clock being fulfilled, they receive their original investment with no additional returns. Once the 15-day clock has been fulfilled, they may “realize” their profits and cash out at any time, gaining both their original investment plus any profits earned. There is no clock on auto reinvested funds, and the clock is only applied once to any deposit.
Let us start off this section by setting the record straight that we are only offering an affiliate program during the pre-sale and ICO period of Dropil. Immediately following the completion of our ICO, the affiliate program will be removed as it only serves to drive awareness to the ICO. Each individual referral during the pre-sale/ICO period provides the affiliate with a one time reward. There is a chance that the affiliate program may return in the distant future as we expand our services and reach milestones such as alternative payout methods like cryptocurrencies other than Drops.
Now that we have cleared that up, let’s get into how our affiliate program differs from lending platforms. Lending platforms affiliate programs are built based off of a down-line, pyramid, or multi-level structure. They are inherently necessary to get the best returns from these structures. Person A refers Person B, and anyone that Person B refers benefits both Person B and Person A, and this pattern continues through multiple layers. This is often referred to in everyday life as an MLM (multi-level marketing) structure or a pyramid structure. Dropil’s rewards for the affiliate program ends at the first deposit of each referral. Each referral that one of our affiliates brings in is individual and separate from any other referral. The purpose for our affiliate program is to spread awareness with a small reward to those who help us accomplish this. Any referral that makes a deposit will reward the affiliate with 5% of the deposit, paid to the affiliate in Drops. This only applies to the referrals first deposit and any additional deposit in the future will not reward the affiliate. All rewards are paid to the affiliate in Drops following the completion of the ICO; this happens at the same time that we distribute all purchased Drops from the pre-sale and ICO.
Dropil’s returns structure is vastly different from virtually all of the lending platforms that exist today, no surprise though as Dropil is an investment platform and the returns follow that structure instead. When someone takes out a calculator and tries to calculate the returns they should be seeing from these platforms, the immediate response is almost always “is this real? That has to be too good to be true!” This is because it is too good to be true.Many of the popular lending platforms offer returns upwards of 30-40% each month. A fairly simple calculation of 1.30 ^ 120 (30% compounded over 120 months, or 10 years) shows that $1 can turn into $47,119,673,969,698 in 10 years. That is forty-seven trillion dollars, yes, TRILLION. Considering that many of the popular investing platforms had tens of thousands of users with a combined pool of tens, or even hundreds, of millions of dollars invested shows that this model is not sustainable in the slightest.
Dropil predicts more realistic monthly returns depending upon risk settings with percentages starting at around 2% and scaling up to a maximum of 6% per month for our high limit investor category at time of publishing. All of our users are paid their returns in Drops directly into a wallet of their choosing – whether it be their user portal storage wallet, an external wallet, or re-invested into their Dex investment wallet. If they are deposited into an external wallet, such as an exchange wallet, they can be converted into any currency that they choose.
We hope that this article was able to clear up any misunderstandings about differences or similarities between ‘pure investment platforms’ and ‘lending platforms.’ We encourage anyone to contact us with further questions or concerns regarding this topic so we can clear up any additional confusion.
Thank you for reading,
-The Dropil Team