This guy, Jesse Eckel, turned $3,000
into $28,000 in a month.
By two months, that $28K turned into
nearly a quarter of a million dollars.
I needed to learn more.
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What's strange about this investment is it uses techniques
from DAOs and Farming-as-a-service crypto projects.
When I tried those things out in the past,
it didn't go so well for me.
So maybe two wrongs make a right.
Maybe these ideas have legs, but they
just needed a little bit of tweaking.
So I decided to dig into the research.
[$$ Young APY enters $$]
Research? This nerd is always going on about
his precious research. I'm buying.
- No, I'm not letting you blow your money this time.
- Settle down.
This thing pays 100,000% APY.
That's nothing compared to the two quadrillion percent return last time
- See, this is your problem.
You think 1000X in a year is low risk?
Just be realistic, just once.
- Shut up.
I'm investing $2000.
- He's a lost cause.
It's really not funny.
His child support's due next week, but I
guess he'll be the guinea pig for us.
Until then, let's talk facts.
Young APY traded $2,000 worth of BNB tokens,
for $21,000 Titano worth about $1983 after taxes.
According to the account page, it will pay $38 per
day in profits, about $1,500 in the first month.
But that's chump change compared to the returns
if this 100,000% APY lasts an entire year.
If that happens, Young APY would
be sitting on $1.9 million.
For comparison's sake, I'm starting three
grid trading bots on Pionex. But there's a twist.
I'm doing $1,000 into Luna, $1000 into Ethereum and Dan here,
- I'm Dan.
is going to choose my third bot.
If his choice beats either of my choices,
he gets to keep all of the profits.
- Okay, I'll take that bet.
Alright, so which coin do you want to go with?
- How about BNB?
- Done.
So we'll check back and compare
these results with Young APY.
So this investment Young APY
leaped into utilizes auto-staking.
Basically how this works is you
buy a token and that's it.
It literally just sits in your wallet getting
paid more and more tokens every 30 minutes.
Seriously, compare this to a DAO where you have
to purchase tokens and then you need to painstakingly
click a single button in order to deposit those
tokens and then you accumulate your rewards.
Now, jokes aside, that is a little bit of
a hassle when you need to trust websites
and let's say you're invested in multiple DAOs.
Now you need to track these multiple
websites and whether you trust them.
This is a better way, if it can
just sit in your wallet and accumulate rewards.
But I had mentioned, this is also
kind of like farming-as-a-service.
With this type of investment, you pay a
tax when you purchase or sell the tokens.
This can be anywhere from like 4% to 15%.
That tax then either goes to the
community or to investments for the community.
This project takes a pretty hefty tax of 13% for buys
and 18% for sellers, but they claim
to do this for a good reason.
They say that this helps them
provide a stable yield of 102,000% annually.
The project is called Titano Finance.
The goal here is to address a major issue with DAOs.
Those investments can offer
millions of percent returns.
The problem with a DAO is how
they calculate their 1,000,000% APY.
You can technically make a million percent in a
year, but still lose money with a DAO.
I know it seems impossible, but that's because
So the total amount of tokens you hold can
increase dramatically, but the value per token can crash
at the same time, it doesn't matter if
you have a trillion or a quadrillion tokens if they're worth nothing.
You might be wondering, but
how do they stabilize the price in Titano?
Their token can fluctuate.
So where does this guarantee come in?
Well, first off, this is experimental.
We don't know what will happen in
a black swan event or long term.
However, they attempt to stabilize the
price in a few interesting ways.
First is through that tax on buys and sells.
A portion of this goes to
what's called RFV or risk free value.
Risk free is probably a stretch of the phrase,
but it basically goes into this fund that
automatically buys or burns the Titano token in
order to help stabilize the price.
If prices go down sharply, this fund can buy
the token on the open market and help push
up demand pressure against stabilizing the price.
You can look at the actual wallet on the blockchain
to see it currently has $11 million in it.
Compare that to their $174 million market cap,
and this fund can definitely
have some influence over market movement.
So this might work.
Beyond this, Titano claims to be the only token that
benefits holders if whales sell, which not going lie, is
an attractive tagline.
However, this is referring to the 18% tax required
when you decide to sell your Titano tokens.
So it's definitely not an incentive to sell.
But if a whale is up 1000X on their investment,
which Titano happens to be since its inception, then I don't
think a whale will let 18% slow them down too much.
Before we get too crazy, let's talk risks.
Besides the obvious of this being a completely
new platform and relatively small token, they have
had an audit done that revealed a few
major things that need to be addressed.
The reoccurring theme being centralization.
According to Certik, there's some
centralization risk because the project could
theoretically send Titano tokens from the
deployer wallet without full community approval.
That would be bad.
Another issue pointed out in the audit is the owner
role within their contract has too much solo power.
They can change basically anything from buy and sell
fees to the liquidity and the treasury receiver.
If that role was hacked, this
would be the end of Titano.
Now, these are big sticking points.
However, it appears that the issues are being worked
on in the version two of their protocol.
So maybe you like this idea, but you know,
if you want to make absolutely massive gains, you
have to get in at the beginning.
You want another option.
Well, Titano isn't the only project taking
the DeFi world by storm.
There's a new kid on the block
who's already seen a ton of growth.
This is another project offering near 100,000% APY
at almost 2% daily return on investment.
But of course, this doesn't come without its own risks.
- Done, just purchased $2000.
There's nothing you can do about it.
- See, this is what happens.
You guys gassed him up too much on the last video.
Now he just interrupts me and thinks he runs his channel.
[Four to six weeks later]
It's been a month and the results
of APY's Titano investment are in.
The deposit was set to pay $38
daily if the token price didn't change.
Well, the token price changed badly.
The total balance has shrunk to just $550.
This is not good, but at least APY
still has a second investment to bank on.
All right, let's cover the
details of APY's Sphere investment.
He traded $2,000 worth of MATIC tokens for
15,000 Sphere tokens worth $1533 after taxes.
According to the account page, that will pay $91 per day
in profits for the first month or about $2700.
Now, their calculator doesn't go for an entire year,
but we can assume that projection would
be in the millions if it did.
However, in four months, this is estimated to pay
$15,000, a 10X return in 120 days.
All I got to say is good luck to APY.
Now before we get to the results,
how exactly does Sphere finance work?
Where do they get the money for nearly 100,000% APY?
Well, they do call themselves the S&P
of crypto, and you're probably wondering what that means.
And same.
But basically,
But how does that work?
Remember the taxes on buys and sells in Titano?
Well, Sphere has them too.
13% on all buys and 20% on all sells.
That's why when Young APY used $2,000 in MATIC to buy
that token and ended up with a value of just over
$1,500, they then use that tax, or what they call
a black hole of governance tokens from other protocols.
The idea is that the treasury will not only grow from
taxes but also with profits from yield farming as well.
Now there is something else I forgot to mention.
Both Sphere and Titano have games.
And by game I mean more like a kind of lottery.
How it appears to work is you buy their
tokens then you stake them for the chance to
win a piece of their prize pool.
Every additional token you stake is
like another ticket in the raffle.
This is another one of those things that's a
bit untested and it's all completely new territory.
Beyond, there's also a few points brought up in Sphere's
audit that I feel obligated to point out.
But first the baseline test.
How do you think your trading bot did?
You just needed to beat one of mine.
- Probably not good because things just are terrible right now.
- So my bots were on Ethereum and Luna.
And if you haven't seen the news, Luna
completely collapsed when I was running this bot.
So much so that Pionex actually just
deleted the bot off of the platform.
So good news is you won
bad news, because the market also crashed,
you won $7.
- I'll take it.
So Sphere had an audit done and the
report had a few points of varying intensity.
The biggest was the audit showed
that Sphere's initial token distribution was
sent to a single contract deployer.
Which is basically putting too much
power in one person's hands.
However, the audit report reveals that
Sphere redistribute the initial token supply
to an above industry standard.
Which basically means 5 out of 8 people
would need to sign off on a major
change for it to then go into effect.
So thankfully that issue along with the others that
Certik flagged, seem to all have been resolved.
Given everything we know about these projects,
the wild returns and the risks,
How did APY's Sphere investment do?
Well in APY fashion, It did bad. Really bad.
The $2,000 turned into just $252.
I don't know how Young APY comes back from this, honestly.
I think I'll just keep these
funds deposited for a year.
This is an educational experiment and we'll see
what the massive interest does over time.
What a roller coaster crypto can be.
There's always a new project and technology
promising insane returns and it's hard to what's legit.
From here, I recommend checking out this video where
I dive into the craziest investment strategy
and story you have ever heard.
You need to give this a watch.