Investing can be a scary experience in general, but when that investing moves into the cryptocurrency realms some people are downright terrified.

Trying to figure out which coins to invest in, which exchanges to use, and hearing the stories of those who mismanaged crypto-investments can make anyone’s hair stand on end. There are several projects that are addressing cryptocurrency investing, and one of those is Dropil.

With the catch-phrase “simple, intuitive and automated tool for the cryptocurrency market” it sounds like Dropil may be onto something, but is it too good to be true?

In this Dropil review we will attempt to answer that question by looking into the technology, roadmap, team and token prospects.

Let’s jump in!

Dropil Overview

Dropil offers a full investing suite including financial planning, retirement savings, and of course trading. Their primary target market is inexperienced investors who are looking for an easy way to enter into the cryptocurrency markets, but they also have something to offer the more experienced investor, cryptocurrency and otherwise. And they claim to be able to set-up investment planning for anyone, regardless of their risk tolerance or background.

Dropil Overview
Overview of Dropil. Source: Dropil.com

Of course the main selling point of Dropil is the automation of the cryptocurrency trading process. The platform requires little input from investors and claims it will deliver high profit margins and minimal risk of losses.

The team is trying to create a low friction, easily accessible, and low stress investing experience. The platform is built to simplify the investing process and deliver you the information you need, while doing away with analytics you might not care about or even understand as a beginning cryptocurrency investor.

Dropil also takes much of the time commitment from trading. By using the automated tools investors can avoid the need to sit in front of a computer screen and watch the markets constantly. And it opens up the world of investing with a very small capital requirement. This can be very important to some users, who may not have the thousands or tens of thousands required to invest in more traditional products.

The Dropil System

There are three main components of the Dropil system. The first is the trading robot, known as “Dex”. This bot does all the heavy lifting within the platform. Then there’s the risk management bot called Arthur, who isn’t as complex as Dex.

Finally there’s the platform tokens, know as DROP tokens. These were issued to ensure user privacy and to help the development of the platform and internal Dropil economy.

The Dex Bot

Dex is the primary aspect of the Dropil service. While you might think it is a trading robot, it is actually far more. It is a carefully crafted collection of robots that have been extensively tested to ensure profitability. The algorithms used by the Dex bots are proprietary and were developed in-house by the Dropil team.

Since its initial implementation, Dex has continually been improving and perfecting its ability to change and scale its many strategies in order to take advantage of any market conditions.  It is able to collect new trading data in a real-time basis, and continually updates and adjusts its trading algorithms. It isn’t a simple robot, but is rather an artificial intelligence system designed specifically to manage cryptocurrency trading and portfolios to achieve a solid profit with minimal risk.

The Dex Bot User Interface
The Dex Bot User Interface

There are several modes that combine various logic types and enable Dex to complete specific investing tasks. There are set strategies for each mode, and the AI can adjust automatically to switch between strategies based on market conditions. Each mode is separate and independent, and trades just one pair on a single exchange using one account at a time. This allows the AI to collect massive amounts of data on the markets, which it stores in a central repository and accesses continually to analyze market conditions.

Dex uses its group logic rules to maximize performance, but is also mixed with human oversight to ensure it doesn’t get off track. One method used to minimize risk for investors is diversification of tokens traded, and exchanges used to trade. The system pools investor resources, and trades based on each users chosen risk profile. This ensures maximum safety for each investor, even when markets turn volatile.

The platform also uses both programmatic and manual protections related to the exchanges, connectivity, and API usage to ensure the greatest safety and stability for the platform.

The Arthur Bot

A second part of the Dropil platform is the Arthur bot. This bot is the risk management bot, which manages investor portfolios and also provides arbitrage analysis. While it is less complex than Dex, it is still important as it will monitor up to 13 different exchanges and 10 different coins to find arbitrage opportunities for you.

Arthur Signal Arbitrage
Arthur Signal Arbitrage on Dropil

What is most important to note is that this can all be done without the use of an API as well as no user accounts needed. Future plans include expanding this functionality.

The DROP Token

The final aspect of the Dropil ecosystem is the DROP token, which is an ERC-20 token that was created to help ensure privacy, while also powering the internal economy of Dropil. The team chose to use the ERC20 protocol to help foster compatibility and quick exchange executions to benefit the entire community.

The DROP token has a total supply of 30 billion coins, which was determined to be an optimal amount for asset management by the developers. It was also chosen with the optimal user base in mind, as well as the need for coins to be traded and achieve widespread adoption. The need to use the DROP token to access the feature of Dropil should ensure a good implementation and demand for the token.

Drop Token Overview
DROP Token Overview

30 billion tokens were generated on January 10, 2018 and sold in the Dropil ICO that began on February 7, 2018 and lasted until March 7, 2018. Just 15 billion of the tokens were distributed during the Dropil ICO, with 60% sold at a price of 0.0000036 ETH (roughly $0.005 at the time). The remaining coins were distributed with 20% going to the founders, 15% to the Dropil vault, and 5% to the Dropil team.

The founder token supply is subject to a lock on 50% of the tokens, but it was clearly communicated on the Dropil website that no user tokens will ever be locked away. Since these are ERC-20 tokens they can be stored in any compatible wallet. The Dropil team plans on releasing a mobile smart wallet for both Android and iOS, but it is on the roadmap with a release date by the end of the 2nd quarter of 2018, which has passed several weeks ago.

DROPs can be purchased using Ether or Bitcoin on the IDAX exchange and the Tidex exchange. As it is added to more exchanges we might expect the value of the coin to rise. It is currently valued at $0.005586, but has been trading back and forth over the $0.006 level since April 2018.

This actually isn’t too bad as the broader crypto markets have seen mostly declines over the same period. With a market cap of just over $110 million as of July 6, 2018 the coin is currently ranked #87 on the Coinmarketcap.com website.

Dropil Roadmap

As mentioned above, the roadmap indicated a smart wallet would be released for the DROP token by the end of Q2 2018, but unfortunately that hasn’t occurred. One of the first items in the roadmap following the ICO of Dropil was to have DROPs listed on as many small public exchanges as possible.

I’d also call that a fail as the token is listed on just 4 very small exchanges, and nearly all of the volume occurs on just 2 of those. By the end of the 3rd quarter the roadmap says the DROP token will be listed on large public exchanges. This would be excellent for the coin as a listing on Binance, HitBTC or the like would probably give the token price a boost.

Finally the team is looking at creating a high limit investment platform for users that want to invest larger amounts. It is also exploring becoming a retirement planning option, and has plans on becoming the next-gen retirement plan. This includes communicating with all of the correct parties and getting certified to offer very long-term and retirement plans for our users.

Dropil Team

The team behind Dropil are mostly young entrepreneurial folks with backgrounds in blockchain technologies or finance enterprises. They have included links to their linkedin pages in their bios on the about us page. The company is built out of California which is where most of the founders are located.

Dropil Team Members
Dropil Team Members

Interestingly, all the Twitter accounts were only created in April 2018, but that might just be because this is when the promotion phase of the platform began. All the team member LinkedIn profiles are quite old.

Similarly, there are no outside investors and they prefer to have been privately funded. They claim that this is because they do not want outside directors to have too much say in the business and that the founders should be fully invested.

Conclusion

Dropil looks like an interesting project that is tackling the complexity of investing in cryptocurrencies. The idea of automated trading, investing and arbitrage is a compelling one, but it does sound familiar. Stocks, commodities and forex all have these types of automated systems, or robots, that promise guaranteed returns. I have yet to come across one that is reliable in the long term.

Perhaps the artificial intelligence algorithm is advanced enough to change that. Perhaps cryptocurrency market movements are easier to analyze and predict. Or perhaps not.

This Dropil review was not able to find any online reports of riches being made through the platform, and in looking at the insights section of the tool (which only gives reports for one month, one week and 24 hours), it looks as if the performance over the past month has been mixed, with safe and aggressive pools losing, but the moderate pool gaining almost 2%. Over the course of the month it looks as if Dex won about 65% of its trades. Good, but not mind-blowing.

It certainly is an interesting platform that bears watching, but I don’t think there will be many advanced traders joining anytime soon. Instead the target group of Dropil, new and inexperienced traders, will likely be the largest group of investors at this early stage in the project.

Featured Image via Dropil.com

Posted by Steve Walters

Steve has been writing for the financial markets for the past 7 years and during that time has developed a growing passion for cryptocurrencies.