Well hello there,
Finally got some time to sit down and write some honest thoughts on my DEFI adventures in the Binance Smart Chain (BSC) over the past month. This isn't a shillfest, I won't provide reference links, unless you comment you want them.
Otherwise, Google is your best friend. This is to hopefully help you understand what's going on with these games.
The Beginning | Drip & Fisherman Joe
Little over a month ago, I was encouraged to look into projects like DRIP and FISHERMAN JOE. I did, and the numbers looked great, I put a bnb or so into both. Back then, DRIP was over $100 and Fisherman was over $14.
These projects involved depositing non-refundable crypto into the contract balance to earn a daily yield forever. For DRIP it was 1% daily, and FISHERMAN JOE was up to 3% daily. Now people on Hive would probably be shaking their heads going "why on Earth would you want to lose all your initial deposit" the narrative back then was the token yield was high enough that you could get in and get out normally within the first 20 days and everything else was free money.
I dabbled, and I liked it enough to consider some new similar projects launching on BSC. Passive income is the goal, right? And I had recently quit my dayjob to work on ChiFiBots, but without a MVP, there's no actual salary yet. So I have to use the power of crypto to hopefully see me through.
I then heavily invested in 2 more games called the PIGGY GARDEN and DEFI EMPIRE GAMES. Both looked like great projects.
Lots of hype and the whitelist/pre-sales sold out almost instantly. Opening day, both tokens shot up in value.
Where It All Went Wrong
Being my first time getting involved in all these type of games on BSC, and having little exposure to FISHERMAN JOE and DRIP, I thought these projects would go up in price regularly. The term "hodl" and "diamond hands" kept replaying in my head, so when the price was still very much high, I held on and re-invested all my yield to make compound interest. The problem was I did this 100% and I should kept some liquid on the side, and also should've sold the yield in the first week.
Day 2 and whales dumping the coin continuously began. All over the telegrams, people were freaking out. "wen marketing" "we need more marketing" "pay youtubers and influencers to shill" - they were brutally honest about this. I've never seen such a community that wanted new investors so they could cash out. Very few people seemed to actually believe in the longevity of the projects. And let's just say, for now, I got left holding a bag of coins.
I got my bro involved and he would eventually lose all his investment. I feel so bad for that. I was high on the opening day price and thought it was the great thing ever.
See, no one really talks about when investments go wrong. They only talk about the wins. This culture needs to change, education through failure is so important.
The price of the PIGGY GARDEN YIELD (TPG) pumped to 0.08 cents and now is currently 0.0023 each. DEFI EMPIRE GAMES yield (DEG) pumped to about 0.30 cents and now is 0.0049 cents. The intentions was there from the devs, but the community and whales let them down. They only cared about the ROI, not the game, or the movement.
The fees can be pretty high on PIGGY GARDEN (0.02 BNB just to cash out) that if you put a small amount in, it's not worth cashing out your yield. It's disheartening how whales manipulate the price so much. Things go ugly in the telegrams and discords and the so called community began to turn on each other. I saw an influencer who took over marketing for DEFI EMPIRE GAMES only to pump the price temporarily so he could dump it.
It was disgusting.
But There Is Actually Good News
Though the fees and general price of the token has plummeted, games like DEFI EMPIRE (Jayce the adventurer) decided to move to a Version 2 contract. One that encourages re-investment, and punishes whales who continuously dump. Many of these projects have now hit the floor price or getting close to it, so buying the in-game miners actually could turn profitable if bought near the floor price. See, if the token price drops, your in-game miners actually yield a lot less. And if you're continuously dumping, you will eventually have nothing to dump if you don't re-invest.
The shining light project in all these is one called BAKED BEANS MINER where the community has discovered and implemented a 6/1 re-investment strategy. Re-invest your yield 6 days in a row and cash out for 1 day. In 6-8 weeks, you would've got a ROI (pending token price is stable) and everything else is just extra. It's one of the only projects where the price hasn't plummeted because it is the mantra they use.
Now with some new projects coming out like PISTON RACE, they are integrating anti-whale taxes and players will need to re-invest at least once every 5 days. There's also a max pay-out an account can have before they no longer can cash out.
We're this early that a few thousand players could be contributing to the future of gamified miners and node holders. My best advice is be weary of all the YouTubers talking about these projects, most just want to dump their tokens that were given to them as payment from the teams behind those projects they are talking about.
Have you dabbled into some of these games yet? I'd love to know.
Be safe, be well. Always be learning.
Take care, honey bears.
Kevin