Thursday, February 24, 2022

Free Crypto from Faucetpay


If you are looking to earn cryptocurrency for free, there’s a site that claims you can do so by doing simple tasks. It’s called FaucetPay.

But is FaucetPay even legit and worth joining or a scam to stay away from?

Well, this FaucetPay review will answer that and all other burning questions about this site.

You will get an inside look and learn about all the details and know exactly what to expect and if this is really worth investing your time in or not.

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What is FaucetPay and what does it offer?

FaucetPay is mainly a micro wallet that also has Get-Paid-To (GPT) features, which makes it quite a unique site. But for the purpose of this review, we will be looking at the GPT aspect of the site. As for its legitimacy, FaucetPay is indeed a legit site since it will really pay you for completing simple tasks.

Now, to fully understand how this site works, we have to take a closer look at the earning opportunities it offers. By doing so, you can also get a snapshot of how well you can earn from this site.

I have, therefore, made a video that gives you an inside look and shows exactly how you can earn from FaucetPay. You can also read all the details below the video.

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Option 1 – Paid surveys

When you become a member of FaucetPay, the first earning opportunity that will be accessible to you is their paid surveys. The reason why I say it is the first accessible opportunity is, the other earning opportunities need to be unlocked (I will explain later how to unlock them).

Take note though that the paid surveys I’m referring to here are the paid surveys from one of their partner sites (TimeBucks). Their actual paid survey section has to be unlocked like their other earning opportunities.

To access their paid surveys from TimeBucks, you just have to log in to the site and click the “Earn” option on their menu. Then, click the Offerwalls. Under the Offerwalls section, you have to click TimeBucks. You will then see something similar to the photo above.

Just choose which survey you want to answer and then click the “Answer” button. It will open a new browser tab where you will have to set up your profile first. Just answer all the profile questions as honestly as you can. Once you are done, you will be notified if there are surveys available for you.

If there is a survey available, then just proceed with answering it. Once you finish answering the survey, you will receive the reward promised. If there are no surveys available for you, then you just have to go to the next available survey in the FaucetPay offerwall.

For every survey you complete, you will be rewarded with USDP. Later on, I will discuss what you can do with the USDP you’ve earned.

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Option 2 – Daily login bonus

Once a day, you will be able to claim a login bonus. The first time you log in to the site for the day, you will immediately see something like the photo shown below.

During your first day, the daily login bonus will be set to 1 Reward Point. This will gradually increase when you keep your streak of logging in to the site. The maximum Reward Point you will get will be 100 Reward Points.

So say for example, you’ve logged in to the site for 15 days straight and the last bonus you got was 15 Reward Points. Then, the next day, you failed to log in, thus stopping your streak. The next time you log in to the site, the daily login bonus you will receive will be back to 1 Reward Point.

That’s why it is really important to keep the login streak going to maximize your earnings. To give you a perspective of how important this bonus is, 1 Reward Point is equivalent to 1 Satoshi. So, you can potentially earn 100 Satoshis every day you log in, which is a nice bonus, in my opinion.

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Option 3 – Offerwalls

This is another earning opportunity you have to unlock. You can only access their offerwalls if you have made a certain number of faucet payments per month (usually 5 to 7 faucet payments). So, how do you get faucet payments?

Well, the first thing you do is sign up to a website or app that dispenses rewards in the form of Satoshi (the smallest unit of a Bitcoin). In other words, you have to look for other GPT sites and apps that give out Satoshis as payment through a faucet.

Then, you have to link that faucet to your FaucetPay account (refer to the photo above). Once you’ve linked that, you just have to do the tasks offered by those other sites and apps to get paid. I know, it’s kind of a weird setup because you will have to work on other sites and apps.

But, if you want to unlock their offerwalls, you have to comply with this requirement. Now, if you’re not familiar with offerwalls, they are basically in-site/app advertising platforms that are designed to promote websites and mobile apps.

Offerwalls do this through their paid offers. These paid offers are simple tasks you can do to earn rewards. These tasks will usually ask you to answer surveys or quizzes, play mobile games, sign up for websites, watch videos or ads, and more.

To work on a paid offer, just choose which offerwall you want to work on and click it. Then, click the offer you are interested in doing. You will then see the instructions you have to follow to complete the offer. Make sure to read and understand the instructions before you start because if you miss even just one step, you will not be able to complete the offer and you won’t get paid.

When I was doing my testing, FaucetPay had 8 offerwalls available, which isn’t that many compared to other GPT sites. So, there aren’t a lot of offers you can do and you will eventually run out of things to do to earn from. That’s one of the disadvantages of this site. But, you can still work on the other opportunities to earn more.

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Option 4 – FEY staking

Speaking of other opportunities, you can also earn by participating in their FEY staking. If you’ve been working with cryptocurrency for a long time, this will be very familiar to you. But if this is your first time hearing about the term “staking”, it’s a form of earning opportunity where you can earn cryptocurrency by depositing a certain amount for a specific period.

In FaucetPay’s case, the lock-in period for their staking is 70 days and it will involve the token called FEY (or Feyorra). So, how can you get this token? Well, you can use any cryptocurrency to trade for this token. And the good thing is, you can just do it inside FaucetPay since they have a trading platform you can use.

For example, you can convert your Bitcoin to FEY tokens. That’s usually the route members take when they want to participate in the staking. Once you’ve converted your Bitcoin to FEY tokens, then you just have to choose the kind of staking you want to participate in.

I would suggest you join the one that is almost close to full so that you don’t have to wait long for the staking period to start. Once it starts, you just have to wait 70 days to receive your reward. It kind of works like putting money in the bank and waiting for the interest to be credited to your account.

Take note that the FEY token you’ve placed in staking can’t be withdrawn until the staking period is over. Before you decide to participate in this earning opportunity, I would suggest you read up first on what crypto staking is really all about.

Because you can also potentially end up losing money by doing this and you need to know exactly what you are getting into.

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Option 5 – Multiply BTC games

FaucetPay has a section called Multiply BTC.

This is a section where you can potentially multiply your earnings. However, this also comes with a risk.

You can bet your earnings and it offers several games where you can do this. At the time of writing this review, the games you can play are Dice, Roulette, Limbo, Crashes, and Plinko.

All of the games are very simple and easy to play and they have easy-to-follow instructions on the website. You just choose a bet and play the game and if you win, you will get a reward but if you lose, you will lose your bet.

The higher amount you bet, the more you can potentially win, but then, of course, the risks will also be higher.

So this is not a good option for all and only a good option if you like gambling – but be careful as your earnings can quickly disappear if you are not lucky.

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Option 6 – Referral program

Lastly, you can earn bonus rewards by participating in their referral program. If you are not familiar with what a referral program is, it is basically an opportunity where you can earn by inviting other people to join the site.

All you have to do is share your invite link with the person you want to invite and once they sign up to FaucetPay using your link, they will become your referral.

But, before you can earn from their referral program, your referral must become an active member of the site. That means they have to complete any of the earning opportunities offered by FaucetPay. For example, if they complete a paid offer from one of their offerwalls, you will receive a 25% commission which will be shouldered by FaucetPay.

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So, make sure to invite people that are really interested in earning from FaucetPay.

Introduction to Options

What is an Option?

 Options are not to be confused with futures, as they are two separate financial instruments.

The option seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) ‘exercises’ the option. The underlying asset/instrument could be a stock, bond, foreign currency, commodity, or any other traded instrument. Exercising means utilising the right to buy or sell the underlying security. 

Usually, an option contract should include the following specifications:

Type: whether the option holder has the right to buy (a call option) or the right to sell (a put option).

  • Underlying asset and  quantity: the quantity and the underlying asset(s) (e.g.: 100 shares of Apple.Inc stock)
  • Strike price: the stated price where the buyer will exercise the option
  • Expiry date: the last date the option can be exercised
  • Settlement terms: for instance, whether the option seller (writer) must deliver the actual asset on exercise, or whether he/she will simply tender the equivalent cash amount
  • Option premium: the total amount you pay for the option.


Why Use Options?

There are two types of options: Call and Put. Call options allow the owner to buy a specified amount of underlying asset at a fixed price within a specific period of time while put options allow the holder to sell a specified amount of underlying asset at the strike price within a specific timeframe.

An option can also be categorised by American or European style. American options can be exercised any time before the expiration date of the option, while European options can only be exercised on the expiration date. When you buy an option, the purchase price is called the premium. If you sell your option, the premium is the amount you receive. The premium isn’t fixed and may fluctuate based on market conditions. 

Aside from providing investors with the right to buy or sell underlying assets, there are various use cases for options1:

Versatile securities

The advantage of options is that you are not limited to making a profit only when the market goes up. Because of the versatile nature of options, you can also make money when the market goes down or even when it moves sideways.


If you buy an options contract, you are betting on the movement of the security. This kind of bet requires extensive knowledge of financial markets and a high risk tolerance.


Options are used as an insurance policy to protect your stocks against a potential downturn.

Options to attract employees

Many companies use stock options as a way to attract and keep talented employees.

Different Types of Options

As mentioned before, the strike price for an option is the price at which the underlying asset is bought or sold if the option is exercised. The relationship between the strike price and the actual price of a stock determines, in the unique language of options, whether the option is in-the-money (ITM), at-the-money (ATM) or out-of-the-money (OTM)2.


In the money (ITM)

For call options, in-the-money means that strike price is below the actual stock price. 

Example: An investor purchases a call option at the $95 strike price for XYZ that is currently trading at $10. The investor’s position is in the money by $5. The call option gives the investor the right to buy the equity at $95. 

For put options, in-the-money means that strike price is above the actual stock price. 

Example: An investor purchases a put option at the $110 strike price for XYZ that is currently trading at $100. This investor position is in-the-money by $10. The put option gives the investor the right to sell the equity at $110.

At the money (ATM)

For both put and call options, the strike and the actual stock prices are the same.

Out-of-the-money (OTM) 

An out-of-the-money call option strike price is above the actual stock price. 

Example: An investor purchases an out-of-the-money call option at the strike price of $110 for XYZ that is currently trading at $100. This investor’s position is out-of-the-money by $10. An out-of-the-money put option strike price is below the actual stock price. 

Example: An investor purchases an out-of-the-money put option at the strike price of $95 for XYZ that is currently trading at $100. This investor’s position is out of the money by $5.


You have now familiarised yourself with option basics. Now, let’s take a look at how option works and how the payoff can be derived. Payoff diagrams are charts that illustrate the profit/loss of the option as its underlying price changes, and the conditions include: long-call, short-call, long-put, and short-put.


Bob is bullish on Apple Inc. because he believes the new iPhone will have more functions and  will subsequently give the stock a good bump. Rather than buying shares, Bob is looking at a long position with call options, as they limit his downside while  still allowing unlimited gains if the stock price blows up. Here are some facts about his position and what the payoff will look like at various stock prices:

Given: option premium per share = $2, option strike price=$100

The breakeven point is the stock price at which an investor’s net profit will be zero:

Breakeven stock price = Strike price + premium

In this case, the breakeven price is $100 + $2 = $102. Another feature to note is that if the stock price is below the strike price, Bob will just let the options expire without using them and his losses will be limited to the premium he paid for the options. On the other hand, the profits are unlimited as the price goes higher than $102. 

Here is a formula:

Call payoff per share = MAX (stock price – strike price, 0) – premium per share

At a stock price of $98, MAX ($98 – $100, 0) – $2 = 0 – $2 = $2 per share loss

At a stock price of $105, MAX ($105 – $100, 0) – $2 = $5 – $2 = $3 profit per share


The writer (seller) of the call option takes a short or opposite position. His payoff graph is the opposite of the long-call we mentioned. Profits are limited to the premium he collects when the strike price exceeds the stock price and the calls are allowed to lapse. Above the strike price he faces increasing losses as the stock price increases. 

The payoff formula is:

Short call payoff per share = premium per share – MAX (0, share price – strike price)


In this circumstance, Bob is bearish on Apple.Inc stock as he feels that the new iPhone may be overhyped due to public anticipation. He might therefore buy a long-put option of Apple stock, through which he gains interest as long as the stock price drops below the breakeven price. His loss is also limited to the paid premium and the gain can reach a maximum when the stock price drops to 0.

Given: option premium per share = $2, option strike price=$100

Breakeven stock price = Strike price – Premium

In this case, the breakeven price is $100 – $2 = $98. If the stock price is above the strike price, Bob will just let the options expire without using them and his losses will be limited to the premium he paid for the options. On the other hand, his profits are also limited as the price can go lower than $98 and reach the maximum when the price is zero. 

Here is a formula:

Put payoff per share = MAX (strike price – stock price, 0) – premium per share

At a stock price of $103, MAX ($100 – $103, 0) – $2 = 0 – $2 = $2 per share loss

At a stock price of $95, MAX ($100 – $95, 0) – $2 = $5 – $2 = $3 profit per share


The writer (seller) of the put option takes a short or opposite position. His payoff graph is the opposite of the long-put position illustrated above. Profits are limited to the premium he collects when the stock price exceeds the strike price and the put options are allowed to lapse. Below the strike price he faces increasing losses as the stock price decreases. 

The payoff formula is:

Short put payoff per share = premium per share – (MAX (0, strike price-share price)


Tuesday, February 22, 2022

What is the Crypto J-Curve?


What is the Crypto J-Curve?

crypto J curve

The crypto J-curve models how the market values a cryptocurrency over time. Usually, upon an ICO, or its initial listing on a major exchange, enthusiasm for a crypto asset is high. It typically continues to moon (or boom) for a while. Yet, during this time, the utility value of the coin is usually minimal, or even non-existent.

As the coin gets utilised by others, potholes in the road appear, which the developers tried to patch up as quickly as possible. But enthusiasm wanes, and with that the value of the coin. However, as improvements are made to the protocol, things tick up again, drawing out a pattern in the shape of a ‘J’.

We introduced the equation of exchange in the post on crypto asset valuation. This model was conceived by Chris Burniske. However, he didn’t stop there and has extended the model further to form the ‘Crypto-J-curve’ hypothesis.

Let’s go into this step by step so that you can understand how market sentiment influences the value of your crypto assets.

Step 1: Utility Management

Burniske uses the discounted present value to measure the token utility. He assumes a specific maturity date, T, then proxies the token utility value by that date (in USD), finally discounting it back to today.

Readers should note that the utility measurement itself is futuristic. Future? Come again, Marty: In other words, if the token’s utility is considered immature today, we should consider its future utility and discount it back to get a fair valuation for its current price.

Step 2: CUV and DEUV, and What They Are

Burniske further decomposed the token price into ‘Current Utility Value’ (CUV) and ‘Discounted Expected Utility Value’ (DEUV).

The idea is that a token’s value consists of both:

  • the value as if it can be used today
  • the value as if it will be widely adopted in the future

The Crypto J-Curve in Action

Burniske believes that the enthusiasm for a crypto asset will initially be high and typically continues to grow for a while. In this period, the CUV of the asset is minimal, or non-existent if there’s no protocol. The asset is then largely composed of DEUV.

As the crypto assets progress through time, the enthusiasm may wane, weighing on the DEUV. Since the system is not yet mature, the CUV is low, and a high % of CUV presents a low valuation price.

The system will gradually mature with increased use, and the CUV of a crypto asset grows quietly. A growing CUV can occur even as the DEUV of the token continues to compress. If the market is bearish enough, the price of the asset may compress DEUV all the way to zero, leaving only CUV, and a drastically diminished price. Potentially, the market may even discount the asset to the point of trading below CUV, somewhat akin to a stock trading beneath book value.

The system will eventually reach a mature point where both CUV and DEUV are expanding, completing the whole market cycle.

Although the valuation model and the Crypto-J-curve provides a practical framework for analysing crypto assets, we would like to point out some problems and concerns with the model:

1. Arbitrary maturity date chosen

In Burniske’s example, he has used 30 years as maturity date. What if the token is more short or mid term focused? With a high discount rate (e.g. 30%), picking 10 years vs 30 years can significantly affect the result due to discounting.

2. Only single use case are allowed

Burniske assumed only one use case in his example. What if the token has more than one utility or use case?

3. It is hard to measure utility value in USD

Many arbitrary assumptions were introduced, including target addressable market and adoption curve.

4. An arbitrary discount rate

The discount rate has significant impact on the discounted utility, yet no sound methodology for calculating the discount rate is provided. Burniske subjectively picks 30% as the discount rate in his example.

5. Technological soundness is not considered

No factors are considering the technological soundness/platform and team capabilities.

6. The probability of failure

Projects may fail due to technology, execution, accidents, etc.

Is the Crypto J Curve Useful?

To conclude, Burniske provided one of the first crypto asset valuation models, which may provide directional insights for token valuation. It won’t give you a good estimate for exact token prices, but it has use as as a general roadmap for a token’s development.

How to Fully Understand the Value of Your Crypto

This post on the Crypto J-Curve completes a four-part series we created on cryptoasset valuation. You can also learn the 101 of crypto valuation, TradFi asset valuation tools, and other cryptoasset valuation models in the other pieces of our series for a deep dive and DYOR (do your own research) on what your crypto is really worth.