Yes. It's true. There are lot of gamblers who want to become crypto millionaires within few days and some of them were able to become very profitable in this POW3D Ethereum pyramid scheme. At the time I write this post, there are 77,042 ETH which equals to approximately $35 million in the POWH3D smart contract and there is over 3000 ETH volume in the last 24 hours.
What is POWH3D?
POWH3D is a decentralized exchange (DEX) where you can buy and sell P3D tokens which is native to POWH DEX. Everytime someone buys or sells P3D tokens 10% transaction fee applied and it is distributed among the all current P3D token holders. This means every time a transaction happens P3D token holders get 10% dividends. If a person hold more P3D tokens he can get more dividends as the dividend amount is divided by the current amount of P3D tokens and that amount will be distributed to each P3D token. P3D token price goes up when people are buying and token price goes down when people are selling. All of these are governed by the POWH Ethereum smart contract which is open to the public. You need metamask extension in order to buy, sell P3D or withdraw dividends.
To be honest, this party exists only if there is a good volume of transactions to cover your risked amount of ETH or if you sell your entire amount of p3D tokens or portion of tokens at a higher price than you bought to cover your risked ETH amount. Otherwise you are in an unprofitable position which makes you a looser. That's why it is considered as a pyramid scheme. When more and more people comes after you joined the party, you have more room to become profitable.
Analysis of POWH3D Profit Takers
This is how people earned money from POWH3D in ETH with profit.
Above table depicts that the people who made the largest profits in ETH so far. If you looked at the person who earned a realized profit of 402.7017 ETH and it is 1017% gain making him rich from this pyramid and he risked just 39.5 ETH to get that 402 ETH profit. If we convert this to fiat assuming ETH price is $500, it 's around $200,000 profit from just from around $20,000 risk. We can see that there are several other people who grabbed 100%+ gain. However, most of them sold their POWH3D tokens once price went up to take that profit.
Now, Let's see how people made 10,000%+ gains by risking a little drops of ETH.
(Image with a higher size: https://ibb.co/jj8XTo )
Just look at the marked rows. You can see that these people were able to gain by 10,000%+ when compared to the risked ETH. Please ignore other rows as most of them earned from referrals.
Finally let's my favorite table which depicts the people who get the highest book profit percentages without selling any single token, referring any people.
1st person in the table is an early investor. He invested just 1.83 ETH in February and he withdrew 9 ETH so far making him profitable from his risked ETH and if he sell his tokens now he can get 99 ETH. But he doesn't sell. Look at the other people too. Most of them are early investors and almost all of them have enough rewards/dividends to cover their initial risk amount. The best part is that they are still earning few drops of ETH everyday and accumulating the dividends.
My Strategy
First of all I would like to remind you the disclaimer that this is not a financial advice and losses may exceed deposits.
After analyzing the above charts I applied a long term strategy as my POWH3D strategy. I risked the just 0.23 ETH to buy around 5 P3D tokens. At the time I bought my P3D there are 3,831,936 P3D total tokens. This means my portion is just 0.00013%.
The risk of becoming unprofitable becomes higher if the people start to exit from this POWH3D by selling P3D. So what is the worst case scenario. There should be 77,000+ ETH reduction as people will go out of this game which leads at least a 77,000ETH volume. Let's do the math now. 10% fees of this volume accounts to 7700 ETH which should be distributed to the current P3D token holders. Since my portion is 0.00013%, I should get 7700*0.00013% = 0.01 ETH as dividends and I will have a 0.22 ETH loss max.
What if the people get in and out from this every day making a constant daily volume around 5% of the current ETH balance of the smart contract for next 60 days? That would account to 3500*30=210,000 ETH volume. It will give me 0.27 ETH making me profitable.
Will I consider, if the ETH balance of the smart contract goes further up? I may not. This is because my 5 p3D tokens will worth more if there is more buying occurs. I may sell my P3D tokens if their value goes up to around 100 ETH which is totally optional for me.
Will I reinvest dividend earnings on P3D? Yes, definitely. But only if the P3D price goes down as it gives me to buy at lower price and it will also gives me chance to increase my portion in P3D tokens supply. I mentioned in the worst case scenario that I will have a 0.22 ETH max loss and I can reinvest on P3D to increase my share and get higher dividends. Therefore my loss will become less than 0.22 ETH.
I heard that the developers of POWH3D paying dividends to P3D holders from the volume generated from Ethereum based decentralized gambling platforms and games built by them too which means there are more dividends coming to my P3D tokens. However, I still stick to my max loss of 0.22 ETH.
By reading my strategy you would realize that still there is a risk of loosing money. Yes, definitely. However, my goal is to become the 1st person shown in the last table which may take time. I am willing risk that amount for it.
Are there other risks? Yes. What happens if a hacker got in to the smart contract and hacked all ETH? This risk is also there. If very less people do transactions with small ETH amounts, volume will be less which leads to less dividends. Therefore, it will take a long time to become break even if the volume is less.
My final word is there is no game here if you are willing to loose. The best thing is you should be able to estimate it and bear it if the things don't go well for you. POWH3D is for risk takers only. Never risk ETH there more than you afford to loose. If the things goes well it may make you a rich person.
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