WEEKLY REVIEW — DRILLCASH
Since this is my first article, I think an introduction is due. I am a financial analyst, with an audit and marketing background. I am in no way a digital assets valuation expert. I strongly believe that traditional assets valuation methods do not apply to digital assets. However, I do believe that common sense, risk management and foresight should be used when buying any digital asset.
I have started these weekly reviews because I want to improve the community’s knowledge regarding each of the tokens on the TRX network. I will do my best to review one token each week, and perhaps even two, if time allows it.
Here, I will use the same approach I use when I’m thinking of buying a new digital asset. I work hard for my money and my risk appetite is not that high. As a result, I am extremely thorough and overparticular in my analysis.
So without further ado, the review of Drillcash:
This particular token has got my attention after it skyrocketed to the #1 position on the Tron’s Token Ranking Telegram channel @TronsTokenRanking . My approach for reviewing any digital asset is split in a few sections, which will be presented below, followed by the conclusion.
- Use case: Every token should have a clear use case. A token without a use case may gain artificial value through pure speculation (I call it gambling), but in the end its value will fade away because there is nothing to support the value of the token. The market always decides the price for a digital asset, but if that price is based on greed and speculation alone, you should always expect the value of that token to go from 100 to 0 in a very short period of time. In the case of Drillcash there is no use case. Their whitepaper, which can be found here: https://www.drill.cash/ has no mention of any use case. The only topics in the 5 page whitepaper are regarding the ICO, Airdrop, Marketing and “App”. All of these topics contain little to no specific information, and only present the distribution of the Drillcash token to the community, a marketing objective and some vague information about an app. For more information about use cases I recommend you read this article: https://www.coindesk.com/information/applications-use-cases-blockchains/
- Technology: Every good digital asset has some type of technology behind it, or is in the process of developing it. Drill mentions an “App” in their whitepaper which “will give rewards to people that advertise Drill”. No specific details are given about how the app will work or when it will be complete. Additionally, having an app that is only used to reward people for promoting the Drill brand or Drillcash token, seems very similar to a pyramid scheme — convincing more people to join and buy Drillcash, artificially increase demand so that the founders and early adopters can cash out. This model is not sustainable. You can read more about pyramid schemes on wikipedia: https://en.m.wikipedia.org/wiki/Pyramid_scheme
- Team : The ideal scenario is to know who is running the show. Linkedin profiles should always be present on the website. The minimum you should know before imvesting in any digital asset, is the founder’s name and face. And you should make sure tjat they are who they say they are. In a perfect scenario, besides knowing who the team members are, you can also confirm their expertise and experience. In the case of Drill, no details about any of the team members can be found on the website or in the whitepaper. Giving anonymous people money and hoping that they will make you rich never works out. Most people have to learn that the hard way.
- Objectives : SMART objectives should always be presented in the whitepaper and roadmap for any digital asset projects such as Drill. However, none are presented for Drill, except for vague ones such as “reach our objectives of be the first Cryptocurrency going totally mainstream”. Just let that sink in. The other objective is a marketing objective (I’m hesitant to even call it an objective) which states that the Drill team will use the ICO funds to hire “superstars” to promote a product that doesn’t exist (and even if it did, it brings no added value to anyone other than the founders and early adopters).
- Potential market size : Normally, in this section I would perform an analysis of the disruptive potential a token would have on a specific market. There would be numbers, calculations, references and complicated stuff. In the case of Drillcash there is no need, because they have no product or service, and as a result they target no specific market.
- Transparency : Transparency is key when it comes to interacting with the community, your customers, your vendors or potential investors. In the case of Drill, they failed to do so in their whitepaper, on their website and even on Telegram, where they refuse to answer questions regarding their project. The founder keeps repeating the same things written in the 5 page Drill whitepaper over and over again, while evading questions regarding objectives, product development or basic technical details.
- Implementation : Normally in this section I would present potential risks or obstacles regarding the implementation of the technology or the adoption of the digital asset. In the case of Drill, there is nothing to implement and the adoption of the token will most likely never happen. There are no details regarding how the app will work, except that in order yo earn Drillcash you would have yo promote Drillcash. Sounds legit.
- Liquidity : A digital asset’s liquidity is very important for investors. Liquidity means the number of exchanges on which the digital asset is traded and the popularity of the token. Drill has no plans to list the token on any exchange, and even if they did, I highly doubt that any decent exchange would accept Drillcash on their platform. For more information about the process of listing any digital asset on an exchange please read this article which sums it up perfectly: https://medium.com/@playkey/how-to-list-tokens-on-an-exchange-79bbce80bb04 . Drill’s plan to make their digital asset popular is “we will hire superstars, influencers and we are ready to do all type of marketing”.
To summarize everything so far: Drill has no technology, no plans, no objectives, no product/service and no team. Their whitepaper is 5 pages long and filled with vague information written in bad english. Investing any real money in Drillcash presents a very high risk with little to no reward in the best case scenario. I have no doubt that they will follow their plan and invest 100% in marketing to overhype the Drillcash token, only to cash out later on.
If you are reading this, think for yourself and ask the important questions before investing any real money in “projects” such as Drill. And for the love of god, do your own research!!!
I do this for fun! I have a stable job which I love and a good financial situation. But if you like the articles I write, feel free to /tip @JDGrey on Telegram or at: TS5Pf8dCGtpDnzWq5rG9QCd7DHoxMy8Hxa