We're closing in on 2 years of existence for these guys, read that again with the crypto space in mind...almost TWO YEARS of actual released products for everyone to use.
I have tested their platform with friends and family who might not have been the most tech savvy, some increased their investment a lot after a few months, because they enjoyed what they saw, took on the 'token' mindset and not the fiat one.
The first year was brutal for the initial investors, they lost up to 95% fiat value from ATH in the BTC bear market cycle. One mistake of Dropil was the first iteration of the Dex payout system, this was not sustainable in the bear market. They have since investigated and adapted it to a payout logic that brings more stability for the token price.
By releasing so many bots and services since their Dex, how can someone even think that this is a scam, they could have kept just the one thing and left a long time ago with the ICO money.
* High supply, 30 billion
* High amount of founder tokens
* No 'real' insights in Dex, besides two Youtube videos, would be nice to have a monthly reports showing correlation between the actual trades on the exchanges and the Dropil funds
* Hidden ICO funds, for all we know there is little left of the initial stash, was it converted to USDT? Did it suffer from the BTC bear market?
* Buffer for Dex payouts is not disclosed
* Price of the token should go up judging by the amount of DROP that get paid out, where are these tokens coming from used for the Dex cycles?
* Plans to move away from public ETH blockchain (ERC20), compatibility with hardware wallets gone
* Hot wallet system might be better for fees but no transparency anymore, what happens in a DROP bank run? Founder wallets get activated?
* Poor marketing, poor communication to the community, no release notes of changes
* Support is slow and bottlenecked
* English language focused, no plans to expand this
* Max seems abandoned, gets probably reworked for Zuhex
* Arthur arbitrage signals are pointless, you can't really do anything with it
* Jade gets stuck from time to time, seems to suffer some design flaws
* Insights page was down for a long time, commitment to fixing publicly visible issues is lacking
* Referral system is not encouraging, some MLM might help spreading the word because it basically is a set and forget platform
* Dex is so easy, user-friendly, beautiful
* Max looks slick, if this gets coupled to Zuhex and fast support for all kinds of tokens, bright future ahead as a portfolio overview tool to rival the established
* Arthur has a nice bot icon... that's about it, wanted to say something positive about the little guy
* Jade is easy for everyone to use and profitable if you don't customize too much, more choices for subscription plans would be nice
* The team is small but unquestionably working hard and building the platform
* Surprisingly active Telegram community for this 'under the radar' project
* Token price has remained more or less stable for a long time now
* For every con, there's a similar case found in other crypto projects, these are not specific to Dropil
I do agree that indeed the only aspect that would warrant for caution would be the DEX trading bot, other offered services seem reasonably legit and real. I do have some concerns:
basically the whole project is not open source and there is also no real proof of the AI trading bot actually existing, by default this is suspicious. I do like that there are no investment packages and users essentially keep most of the control over their coins, withdrawal anytime from the "bot wallet". However, ofcourse this is only possible AS LONG AS the website is online, so the exit scam risk is still there. They do not have an affiliate program either (since after ICO), which makes them certainly look less scammy, but also limits their marketing range, because there are not enough incentives to promote their services by the community.
the team doesn't seem capable to properly position and promote their service for what they claim to be an opportunity that no one should want to pass on. This is also very visible in the lack of traction for the token trading volume and price; 96% down from ATH. Price now is bouncing a lot near its bottom price.
Lack of focus of the team may be at cause here (even though they have been ongoing with developing new services), because the same team prominent members have founded another token project/ICO around KYC. Now this doesn't have to be shady in and out itself, but certainly doesn't make them seem very focussed on the success of DROP, which needs a great deal more of attention.
Eventhough the transparently published locked token addresses (50% of founders token allocation) are indeed intact, still the token holders have been burdened with quite a significant dilution of 25% increase of circulating supply in the last year, so tokens are being brought into circulation at the expense of existing token holders (by a higher inflation rate). So it looks like the team and founders have sold all their unlocked tokens and have completely cashed out with exception of the unlocked tokens (that have depreciated in value 90-95% since the early days). If this really was a successfully promoted and performing service, the price and volume of the token should somehow reflect this, despite the bear market. Team is underperforming on this aspect, and it certainly looks like they cashed out significantly and moved most of their attention to somewhere else (next project).
I have mixed feelings about this project tbh. On the one hand it looks like the typical suspicious HYIP "AI" trading bot which I would immediately reward with the highest red flag rating available! However this project has some interesting deviations from the usual ponzi trading bot scammer schemes, which makes me wanna give them the benefit of the doubt perhaps.
existing reasonable whitepaper
reasonably fair ICO
Visible, existing team
available information is very extensive and transparent; besides the given profit projections, they do give a reasonable disclaimer on their website support documents: "Dropil is not a lending platform and shares no common grounds with these models. There is no hold period on your funds – you may withdraw them at any time, and incur no fees. We do not guarantee any specific returns. This is, after all, trading and it cannot ever be 100% certain. A strong full-time trader will be able to beat an algorithm trader most of the time, and any bot claimed to always be better is suspect. Dex System is not for the top 5% of traders, they don’t need it, our product is for the rest of the population that does not have time, skills, or interest in full-time trading but still wants the benefits of active, profitable trading." Ok, fair enough.
Indeed they don't sell any "packages" with lock up periods, in fact your principal (deposit) can be withdrawn at anytime; only realized profits need to have been in the system at least 15 days, or else will be forfeited on withdrawal of principal.
they claim that their services (such as the available bots) are free to use, the only requirement is that you HODL the token in their wallet, which is definitely a divergent method from most existing legit and scammy (bot) services. Premium services may be at a cost in DROP.
The given locked up founder tokens addresses are indeed in tact (late March19), first address is due for unlocking March19, wallet balance still there, but holders should be aware that the circulating supply may increase substantially in the short term)
Their 3 types of bots seem interesting to explore: their automated AI DEX bot runs a pool of funds from all participants compiled (only this tool would fall in the category of being potentially suspicious), there is another bot that just monitors exchanges and generates signals and another bot soon to release that can autotrade on the user's own exchange accounts (user control his own funds, so virtually no risk of Dropil team exit scam).
They do make a claim of projected high potential profits of 1-2% per month up to 4-5% per month, although they do make a proper disclaimer about that.
This whole project is completely closed source, only the Dropil token contract is published on Github
They only have an online wallet that serve to interact with the services, which I would argue is not the safest way to store larger amounts of funds, it is a very hot wallet! Recovery code sent per email and private keys per wallet are easily shown on screen. Also when the server/domain etc goes down, you won't have access to any of the stored funds, so make sure you do back up each and every private key in a safe manner. A DROP HODL-er that doesn't use any of the services of Dropil, is probably better off with a more secure Ethereum wallet, although Dropil also provides an online multicurrency paper wallet generator.
Like I said, I see enough positive things in this project to offset most of the suspicious elements, which would primarily be the claim of having a highly profitable AI trading bot. The fact that people can withdraw and get payouts are not necessarily proof that there is a bot though. So weighing pros and cons I would be kinda neutral towards this project, keeping some slight suspicion. Either way, best for users/investors to proceed with caution and as always don't invest more than you are willing to lose!
The SEC alleged in a Friday announcement that Jeremy McAlpine, Zachary Matar and Patrick O’Hara, all California residents, lied about Dropil’s financial status and DROP token profitability to their investors, who they also misled by drastically overstating the success of their ICO.
Dropil’s founders said they raised $54 million from 34,000 global investors. The complaint alleged they actually raised only a fraction of that: $1.8 million from 2,472 investors
Those funds, raised between January and March 2018, were supposedly intended to act as an investment in the DROP token that Dropil would manage and multiply via their algorithmic trading bot “Dex,” according to the complaint. Proceeds would be distributed in DROP in 15 day increments.
But the SEC alleged the ICO money never made it to “Dex.” Instead, the SEC said the founders funneled $1.4 million into their personal accounts. They then kept up the ruse by cooking up bogus profitability reports whose credibility they bolstered with the expected DROP payments, the complaint said.
“There is no record that Dex, which Dropil promoted as a differentiating feature of DROPs, ever operated or generated any trading profits,” the SEC said in the complaint. It alleged the DROP distributions were merely recycled tokens from Dropil’s reserves and post-ICO trades.
Additionally, the SEC said the DROP token sale amounted to an unregistered ICO. Dropil is also accused of falsifying evidence and testimony during the SEC investigation.