Today I will explain the simple yet genius concept of Proof of Weak hands.
The coin P3D is an ERC20 token on the Ethereum network that introduces another level of investment. The contract is open source and has been audited and been through a hackaton twice. It is the updated version of the old proof of weak hands coin that got hacked. DO NOT confuse powh (dot) com(old scam site) with powh (dot) io (new legit site).
When someone buys the P3D token by interactng with the contract (sending Eth to it) the price of the token will increment with a small fixed amount and whenever someone sells the token it will also decrement with the same small fixed amount. Just like regular altcoins, you could try to buy low and sell high --> profit. Tokens are minted for each buy and burned for each sell.
The important thing is that 10% of all buys and sells are divided back to all the holders of the P3D coin. So this creates incentive to hold the coin for the dividends.
Suppose you buy in, two scenario's can happen:
- The prices rise with more people buying in and you can sell your P3D for a profit MEANWHILE getting dividend for every transaction made after you --> profit
- The prices drop with more people selling than buying so selling now would result in a loss BUT you would be getting dividends from every sell.
Let me put that into perspective: With regular coins you would now be holding bags but with P3D all you have to do is hold your coins and wait for the dividends to stock pile until you have made your initial investment back or even more --> profit
Your profit in "normal" coins is dictated by supply and demand.
Your profit in P3d is dictated by supply, demand AND volume --> More trades (buys AND sells) = more dividends.
The concept relies on you, the token holder, to have strong hands and hodl through all the buys and sells to accumulate dividends while the weak hands sell for whatever reason.
There is also the added concept of referrals. Whenever someone buys with via your masternode(that you currently can obtain by holding 4 or P3D coins) you would get 3% of his investment as direct dividends. That 3% is deducted from his 10% that goes to the overal holders.
Now you're asking, how is that sustainable? What if everyone sold? If everyone sold you would get all the remaining dividends. But what if there is not more ETH in the contract after everyone sold? That is actually not possible since you would still hold your coins(which you can sell) and the last person selling before you would leave 10% of his stake behind --> profit (eventhough not as much as you probably would've wanted).
In general Proof of Weak Hands is a funny, new and exciting concept that generates profit in a 3D manner.
Buy P3d coins here and help a brother out: https://powh.io/?masternode=0x75ab8b00de5cdef5d57189827070cc150f16d6a1
You can also DM me for any questions or head over to the discord here --> https://discordapp.com/invite/wfG97Kt