So in my last epic post, I attacked James Altucher for his misrepresentation of source code in order to feed his own greed. It kinda put me into that “justice warrior” category. That’s not really what I am about but it seems more often then not, I keep running into people that are running scams and I have the ability to call them out. I just don’t like to see people being scammed.
So there has been a ton of hype over the
“Pyramid Scams” and “Ponzi Scams” in the form of Smart Contracts. I put both of those in quotes because they are far from that, well… at least some of them are.
I have been a computer programmer for over 20 years. I have worked with about 14 different computer languages. I have always stated that programming is not of everyone, in fact, I steer people away from it more often than not because I know the person asking doesn’t have the patience to wait 10 minutes for a meal let alone “hunt for that one fucking missing semicolon for three god damn hours!”
So read that last paragraph closely. I tend to tell people NOT to get into programming unless you fit a certain personality type. So this is a heavy statement:
Do not invest in a smart contract unless you have a basic or better understanding of the Solidity programming language! So learn some programming!
Yup, you read that right, just don’t fucking do it. I am going to talk about 2 contracts that I personally am invested in and I believe you should too, but don’t get into this game unless you can either find someone you can actually trust or better yet, learn the language for your self.
Proof of Weak Hands (P3D)
So this is kind of the first major contract that has proved the model. This is also why I put the scams in quotes earlier. PoWH is the first working dividend contract out there. The premise is that you invest 1 ETH, you take a 10% fee for coming in and you pay a 10% fee for leaving. The longer you say in the contract, the more dividends you earn. Eventually, you will earn more dividends than the 20% hit you took and then you have made a profit. This contract’s math is solid. It calculates correctly for every transaction and because the distribution is done by the contract, the only way to get screwed by this is to exit too early.If you lose money it’s your fault.
Now, whats tricky here is that the dividends are built from the 20% hit. So, the more people buy in and sell off (volume exchange) the more that people holding the contract make. This is where people think it’s a “pyramid scheme”. All the major holders “at the top” collect the money as new people join. Traditionally, that would be correct but there is a “catch” that is in your favor. All the math is the same no matter where you are in the contract! It’s 10% in and 10% out no matter what you purchase. A lot of people worry that the contract will drop to 0 and then what? Well, it can NEVER happen! I’ll explain why when I get to the second contract in this article.
If no one is coming in or going out, then everything sits still but because there is no way to really get screwed, it is the safest option today.
To date, there have been something like 10+ clones. They all have either been hacked or are just leaching right to someone else’s account. This is why I made the statement:
Do not invest in a smart contract unless you have a basic or better understanding of the Solidity programming language! So learn some programming!
Each one of the clones had a fundamental flaw that allowed someone to steal money from the contract. If you understood how the contracts were built, you could have caught that and stayed away.
DoublR (1in2out)
So now here is the 2nd contract that I am invested in. It’s called DoublR and this one is a game changer. The premise is that you put 1 ETH in and sit and wait. Eventually, you will get 2 ETH in return. Let me repeat that: you put 1 ETH in and sit and wait. Eventually, you will get 2 ETH in return.
So how the fuck does that work? Something like this is “too good to be true” or is “a total scam”. So it’s not a scam at all but expectations need to be set. When you put $100 into the stock market and buy something like Apple, you don’t expect to sell that stock 30 seconds later at 3000% profit. In fact, you know you are going to set it and forget it. Checking in every 6 months or a year to see how it’s going. You already understand that Stocks are a long game.
So with all the hype about people making quick millions. I get it. You want to put in $100 into your Coinbase account, convert it to ETH, and buy some super cheap Alt Coin that you just hope and dream that it goes from $0.0000001 cent per coin to $1.00 and now your a billionaire. I want that too but that is most likely not going to happen.
Neither will a smart contract doing the same. So as I begin to describe what DoublR does, don’t go thinking you can throw 1 ETH in right now and see 2 ETH in the next 5 min. I will take some time, it’s like a stock investment. Set it and forget it then check back later.
Now, the more people that invest in DoublR, the faster you get paid back, so if you can get a few hundred people to put in a small amount, maybe you will see it in a few minutes. The contract gains momentum over time and people will be paid faster and faster.
So, here is how it works:
So I know this graphic can be confusing, let me explain.
Everyone that invests is in line. First one in is the first one paid. Once you are paid you are out of the line and free to spend your earnings. So you invest 1 ETH. 1/2 of that pays the front of the line.
Before we continue, let me put the term “Ponzi Scheme” to rest here, and never shall it be spoken of again.
“A Ponzi scheme (/ˈpɒnzi/; also a Ponzi game)[1] is a fraudulent investment operation where the operator provides fabricated reports and generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading. Operators of Ponzi schemes can be either individuals or corporations, and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.
Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.”
So TL;DR on that, people invest (First in), they get new people to come in (back of the line). The first people get paid, the last people are screwed because no one else comes in so the line sits.
“But thats what you just described!” — Everyone reading this post
Yes, but let me continue. That is only half the contract.
Boomerang Liquidity Fund (BLF) is the 2nd part of this contract. WTF is a BLF? Ok, here we go:
DoublR was built to do 2 things. 1st, form a payout line. 2nd, invest in a second contract. A contract that ears dividends all the time. That way even if primary investment slows down or stops, the dividend contract will always produce ETH to the contract.
Ok so what does that even mean?
Think about how PoWH works. As long as someone has P3D tokens and as long as there is a volume of transactions on the contract, it makes money. It’s code, not a person so it’s blind to what it does and is just a money machine.
So remember when I said 1/2 of your ETH pays the line and you screamed “Ponzi” well, the other 1/2 buys P3D… not only that (Learn to read the contract) it CANNOT SELL THE P3D IT HAS PURCHASED!
That’s right, even if all the humans leave Proof of Weak Hands, DoublR has entered the ring with the strongest hands of all. It has no sold off option in the contract. It will always make returns! Always! So think of it this way. The more people put into either contract, DoublR will gain dividends. Which means no matter what IT CANNOT BE A PONZI! There is always ETH flow! Now, again, back to a grounding moment… How long will that take? Well the current line as of (5/7/2018) is about 824 ETH deep. The contract gets about 2 ETH a day. So if you were the only one investing today, and all things completely stopped; you would be paid back in just over 1 year. That’s not bad at all compared to a traditional stock. Now, like I said, it gains momentum and moves fast the more people come in. So let’s say the ETH in the contract doubled, going to 1600 ETH in. That would be 800 ETH to the line and 800 ETH into P3D. That would have paid off 100% of everyone in the current line and would have doubled the volume of P3D transactions, so everyone in PoWH would get a boost and the dividend earnings would more than double.
Because we added another 800 to the line, and the payback is twice as fast now, expect a return in 6 months! This becomes an exponential ATM the more that gets put into it. Remember, you are also buying P3D. As of right now, DoublR is the 3rd largest P3D holder there is and it’s can’t sell! P3D is here to stay and so is DoublR!
These two contracts together are like a slow building storm in the tropics. Once they gain a bit of momentum, They will be a Cat5 Storm. But this one will keep growing on its own because it’s a computer program. People cant stop it so enjoy the ride!
Links to resources
Powh: https://powh.io/?masternode=0xe0fa314c9aad015da4bcba1f39b9863e7b5696da (Yeah I put my masternode in there… Why can’t I earn a little credit for this?)
DoublR: https://doublr.io (No masternodes, it’s just money in money out)