and says, Max, you should be making
money right now doing absolutely nothing.
And typically I can fight these intrusive thoughts.
But Young APY when he sees something he's interested in,
he's going to invest no matter what.
$$ [Dope Music] $$
See, there's this new trend
called Farming As A Service .
You can think of it as
part Hedge fund, part Dao, all degenerate.
Basically, you're investing in a token that then
invests in complicated DeFi strategies so you don't
have to learn how to do it.
It addresses the issue that
Hold on, enough of this nerd s**t.
Let's invest already, $2,000 in MCC. Why not?
[Music]
Okay, going back to the nerd stuff, here's an example.
You buy $1,000 of a Farming As A Service token.
First you'll receive a tax upfront.
This can vary, but for our example, we'll say 8%.
That tax is sent to the treasury
and/or existing token holders as reflections.
A reflection is just a payment to holders
as an incentive to keep them holding.
The money sent to the treasury can be used to
buy back and burn crypto or invest in yield farming
opportunities and earn the entire community more money.
In this case, yield farming is just a blanket
term for simply earning interest on digital currencies.
This could be lending, staking or farming,
making money with the money invested.
The earnings from yield farming are then sent back
to you in the form of passive income.
Now this can happen in a variety of ways.
It could be paid out to you in additional
native tokens, stablecoins, paid in Ethereum or really
whatever payment method they can dream up.
Then the idea is, as more people join the
treasury grows, they pretend it's not some kind of
elaborate Ponzi scheme and you are rewarded even more
for being a long term holder.
Now where it gets scary is
Of course, this can vary, but the
higher the advertiser returns, the more risk
you can assume you have.
Upfront, a big concern is token value.
Getting investment returns on the treasury balance is wonderful,
but if I invest thousands of dollars and that
token that I'm investing into goes down in value,
I could easily lose more than anything I would
potentially gain in interest from the treasury balance.
This is the same issue that we had with DAOs.
Now back to that token that Young APY
decided to yolo into, MCC.
When you buy MCC, you get an 8% tax.
Half of that tax is
distributed among current MCC holders.
Kind of like a dividend, but they definitely
don't want to call that a dividend because
that would be a big no no
according to the SEC.
The other half goes to the treasury,
that's what we just discussed.
Money that the project can use to invest
and hopefully make the holders even more money.
Buying this token feels a little bit weird.
It's probably not like anything you've done
before, because right at the gate you
lose that 8%, invest $1,000, say goodbye
to $80, plus some significant price slippage.
Because these projects are small, there's not much
liquidity, and this means you're likely going to
have to overpay for tokens, meaning your $1,000
might only be $900 after tax and slippage.
So right up front you have to make
a lot of money just to break even.
And to be honest, I'm already a little
bit nervous about this because believe it or
not, I don't particularly like losing money, even
if it's for your entertainment and enjoyment purposes.
And this is a good spot to
say that this is not financial advice.
This video is a test to see how
these things work, not me saying you should
invest in anything that I mentioned. It is high risk.
Now, one saving grace is that
MCC is what's called hyper deflationary.
Now this just means the token supply is
rapidly decreasing and this helps push up prices.
Since MCC launched just a few months ago, the
team has burned 2.6% of the entire supply.
We'll check in on how that investment
does later, but due to the high
risk here, it's probably best to diversify.
So you remember a while back, Young APY, he bought
into five DAOs in attempt to purchase his second Lambo.
That didn't happen.
Well, three of those DAOs lost money.
Two of them did fairly well. They did okay.
So I was looking into other Farming As
A Service projects and digging into the research--
F** your research, I'm buying anyways.
[Music]
[Sigh]
D3 is another project that just launched.
The lead developer actually called the Squid Game fiasco
as a rug pull before it happened.
And this, of course, caught my
attention as a fellow Squid connoisseur.
- This is the second project I'm calling
out for a slow rug pool.
- Now, D3 is slightly different than
the last option for a few reasons.
They are technically A Staking As A Service.
This is like farming as a service, but you must
stake your token in order to receive those rewards.
Kind of like planting a financial seed.
Once you stake the DeFi token, you earn
yield in farming rewards in two ways.
You get more DeFi tokens and you
also get weekly payouts in the stablecoin BUSD.
Let's say you're an investor like me, and you
buy $2,000 of D3, taxes are taken out 12%
whatever, the nerds running this thing
invest in all kinds of projects for me, and then
I earn staking rewards and dividends on top of that.
It's like earning part of a company's profits.
Yeah, that sounds great.
The only problem is I checked APY's investment and his
$2,000 already dropped to $1100 in just three days.
That's a big hole to dig out of.
Is this fast stuff even going to be around in
a year or two in order to let the interest
actually do its job and return that money.
It's all way too early to tell.
This is all brand new.
All I know is if the price doesn't recover,
you may never hear from Young APY again.
Right now, D3 has a tiny market cap, which
means a lot of room for the price to go
up, but also means a whole lot of risk.
One of the beauties of this whole farming as a service idea
is you get a lot of options to mess around with.
ReFi is DeFi reimagined, as they say.
Here's how it works.
You buy ReFi the token, they tax you,
they farm out on multiple blockchains, yield farming,
and then they pay you out in Ethereum.
If you've ever farmed across multiple blockchains, you'll
agree that it's a bit of a hassle.
Let's be honest, there's a whole lot of
moving tokens around, swapping porting transaction fees.
It's about the least user friendly process
ever, except for maybe my local grocery
store and trying to order groceries online.
That might be worse, but this would be a close second.
So a project like this does it for you and ideally
can make you a nice return. By buying the ReFi token,
Done, bought it.
Now what?
[Music]
This guy is such a menace.
I was explaining what happens if you
buy, not telling you to buy.
If you buy, you gain access to a basket
of DeFi investments, sort of like a DeFi ETF.
Basically, the value proposition is, hey, you can go
out and farm and stake tokens all around the
world of DeFi and keep track of everything yourself.
Or you can buy our one single token
and you never have to think about it.
And we do all of that for you.
So it's a compelling offer if it works.
One thing I like about this project is you can
see all of their positions directly on their website.
There's a little bit more transparency.
According to their app, Young APY now owns 0.0029%
of the total ReFi treasury, which will earn about
$2 per day in total rewards, or about 36% APY.
Now the real question is, is this really much better
than lending out a stablecoin for 15% and not
having to worry about all this volatility or banking on
someone to do the right investing for you?
Lame. You are so lame. Let's get it moving.
I have more investments to make, $2,000
into ECC, thank you very much.
And $2,000 in ABC.
This is not good.
He's going to be so broke.
Okay, ECC, Empire Chain capital.
Here's how it works.
Like all these other fast tokens, there's a tax
upfront and the money gets invested in the treasury.
However, with ECC, you get tokens directly sent to
your wallet, which means I don't have to do
a thing if I work to buy these things.
In my opinion, this is a way better way to do it.
I'd rather personally not have to make
an additional transaction to claim my profits.
Like some of the other projects here, doing a
three day check in, ECC has so far paid
Young APY 51 tokens worth a whopping $3.
So we're going to check back
in later with longer results.
Now, the last project, ABC, which conveniently stands
for Alpha Brain Capital, which is quite the
name to live up to now.
This team is made up of six
Alpha Brains, as they call themselves, who
have decent experience in the crypto space.
According to the site, this project is promising
heavy returns of $32 per day on that
$2,000 investment, not including treasury profits.
If that's the case, this would mean profit of over
$11,000 in the first year on that $2,000 investment.
That would be absolutely insane.
Basically sounds impossible because it's maybe slightly
possible, and really time will only tell.
Now, there's something that you've got to be wondering and
that is this all just some kind of Ponzi scheme?
I mean, when you buy and you're literally
paying a tax that goes to existing holders,
and to that I would say yes.
It's hard to argue that this isn't some form of a
Ponzi similar to a DAO, just maybe not a malicious one.
I don't really know.
Just remember that this is
entertainment, not investing ideas.
It's kind of my duty to try these
things out so you don't have to.
It's been 10 days and the results are in.
Usually this is the best time for me. Usually.
I love this part. Not today.
This experiment hurt, hurt Young APY- it hurt me.
Either way, I'm obligated to
be transparent with the results.
So let's get on with it.
First, the DeFi token. This one did the best.
But don't let that fool you, because that's a lot like
saying you beat a first grader in a foot race.
It doesn't mean much.
This token had profit of $20 on its yield farming.
But the token collapsed in value, losing me $400.
And it only gets worse from there.
ECC, I lost $603.
ReFi, I lost $880.
MCC, I lost $887, and Alpha Brain Capital, I lost $1,219.
That's not even including the tax that gets taken out
when you buy these tokens and when you sell it.
These are literally, they're the worst investments
I've ever made in my life.
And I know that this was an experiment so we could all
learn from this, and this will benefit a lot of people.
But it stings.
I got to say, it stings.
I don't even want to do the math on how
much I lost in total after tax and everything.
It's like $6,000 for a YouTube video.
And before I started recording, I was just
thinking, what am I doing with my life?
I just blew $6,000 on a YouTube video.
The problem is this is like a risk sandwich.
And I guess that makes me like the Salami in
the middle that just gets beat up no matter what
happens because it's volatility on top of volatility.
I think the idea has weight, making DeFi more accessible.
DeFi is a pain.
More accessibility would be awesome but some major
changes are needed in my experience to make
this work and worth the money.
Now the only saving grace for me is I've
had other investments do great in the last week.
If you want access to my real investments that are
thoroughly researched landing me up more than 100% and free
coaching every single day make sure to join my Patreon
linked in the description you'll freaking love it.
Also this video is sponsored. Thank God, check
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joining so that's going to do it for today.
I hope that this was helpful, I really do.
I hope you have a profitable day!