BITCOIN

Gambling apps more profitable than CryptoKitties as blockchain moneymaker

TAGs: Blockchain, CryptoKitties, Fomo3D

The success of CryptoKitties is mind-boggling. Upwards of tens of thousands of dollars have been spent on the blockchain-based version of card swapping, with one digital kitty going for more than $60,000. However, the real money to be made on the blockchain is through the introduction of gambling apps.

Gambling apps more profitable than CryptoKitties as blockchain moneymakerFomo3D recently saw five times more users begin to use the app than currently seen by CryptoKitties—and that was just in 24 hours. Fomo3D is a gambling app that allows players to try and take other players’ money through a fictional initial coin offering (ICO). Since it was first launched last month, $40 million has been sent to the application.

Fomo3D isn’t alone. According to a recent report by DappRadar, the blockchain app tracking website, gambling is second of all distributed apps in terms of money received—the top spot is held by cryptocurrency exchanges.

Token sales for gambling-related enterprises have continued to increase, as seen by Dragon Coin and another ICO, which collectively raised almost $1 billion. As indicated by Autonomous Research, a total of 21 gambling projects have attracted $300 million via ICOs.

According to Drago Dunica, who co-founded DappRadar, “You gamble some Ethereum, and it’s possible to get more. At this point in Ethereum, most of the people are looking for profit, to get something back.” Ether, which is used by most of the gambling apps, has seen its price fall about 74% since the beginning of the year.

Some of the gambling apps, Fomo3D included, reportedly have dubious backgrounds, making their legitimacy questionable. Dragon Coin, for example, has been linked to a “reformed” gangster out of Macau who goes by the moniker “Broken Tooth.” Fomo3D’s developer, however, scoffed at the accusations, describing the app as “ridiculously honest.” He points out that the app is governed by software and, once set up, cannot be modified—even its payout mechanism is free from manipulation.

Blockchain-based gambling apps seems to be the clear winner so far. Even PokerStars has activity that pales in comparison. According to PokerScout.com, the average daily traffic on the online poker portal last week hovered around 8,600. To compare, Fomo3D attracts more than 10,000.

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com