Animal Farm Relaunch Review
After the drama of the delays and complete despair, the launch happened as Forex promised and it was within a couple of hours of his revised timeline. Overall it was a smooth launch and so far it has gone off without a hitch. I will give a quick summation of the state of play. I’m naturally a cautious person so I am well aware that things can change quickly and that this article could be outdated quickly.
The Positive Surprise
The price of PIGS has held up fairly well in this market environment. If there was a token that could have experienced sell pressure it was PIGS. I believe that the last minute change by Forex to make the DRIP/BUSD farm pay DOGS instead of PIGS has helped. I have also been pleasantly surprised by the payouts from the Pig Pen. Given that the farm has only just re-launched, the BUSD payouts are surprisingly strong.
The Pig Pen won’t attract degen capital looking for a quick buck. However, I am personally satisfied with what has happened so far and there is potential future upside when market conditions improve and utilities are added to the farm. Forex still needs to deliver on his promises though because PIGS are not immune from a sell off.
The Middle Ground
Unsurprisingly, the DOGS token has experienced little sell pressure due to the high sell tax. Users will need to hold the tokens for a while before they are comfortable paying the tax. I suspect the 50% mark could be a tipping point where we start to see sell pressure. I know for a fact (from Telegram and Discord groups) that some people want to get rid of DOGS as soon as possible.
That is not an entirely bad thing though because this should lead to an increase in Dog Pound (and Pig Pen) rewards from sell taxes. I am also fairly happy with the rewards in the Dog Pound. Forex was able to deal with this by using the BNB from the LP that was credited for DOGS as most people traded their LP for an equivalent amount of DOGS. I am also aware that the lack of price appreciation means that there is little buy pressure as well. All this points to a lower DOGS price over the next couple of months but who knows?
The Bad News
The talk of the town is the price of DRIP. The price action has been dreadful to say the least and things look grim. I know many think it is a scam and I get the arguments against it. They say it’s a ponzi scheme and criticise the referral scheme. I get that it has what we call “ponzi-nomics”. If we look at the Faucet alone, the daily 1% payout will eventually lead to hyper-inflation.
There has been a large accumulation of DRIP in wallets which has inflated the circulating supply (see below chart). Add the change to the DRIP/BUSD rewards from PIGS to DOGS and there would appear to be less value for DRIP. Many are seeking liquidity so don’t want to hold on to DRIP to get something that they will then have to hold for 3–6 months. There could be people switching from DRIP to Animal Farm too but I think this is only part of the story.
Is DRIP Going To Zero?
Possibly. It’s easy to make those kind of statements. My question to you is, would Forex sit back and let that happen? What about the DRIP community? There are some people who are extremely loyal to Forex. I try to be a bit more balanced in my assessment but I believe that there is power in a strong community. I haven’t even mentioned the potential for future utility with scratchies, lending, and insurance. Sure, these have not come yet and promises are not the same thing as utility today. It could even be a red flag. Just to be clear I am cautious about adding to DRIP right now apart from hydrating.
Final Thoughts
The Animal Farm seems to be humming along fairly well. It is paying out and doing what it is supposed to do. I think DOGS will start to come under pressure in a month or two as people will want to leave the farm. DRIP is problematic but I don’t think death is guaranteed? While Forex took a long time to relaunch Animal Farm, the fact is that he did relaunch it. He’s not rug pulling nor is there any evidence that he’s doing anything nefarious. He just operates in ways that most of us will never understand.
If you’re new to the space many will recommend to build your faucet. I can’t tell you what to do but I think the Animal Farm is a safer play. You may want to consider my low risk strategy or something similar. If you want to play a high stakes game of shooting for the moon then DRIP could be for you. At the time of writing, you could purchase 550 DRIP tokens for $1000 and just keep hydrating. I’ll leave it to the reader to decide.
Disclaimer: None of what is written in this article constitutes financial advice. Investing in cryptocurrencies, and in particular decentralised finance, is high risk. What I write is not a recommendation to invest in the projects I discuss. I am not aware of your personal circumstances. Only invest what you can afford to lose. Make sure to do your own research rather than relying solely on my content.
Links
Animal Farm Home Page: https://defi.animalfarm.app/
Drip Homepage: https://drip.community/
Drip Community Wiki: https://dripcommunity.wiki/