Factors Driving Price of CasinoCoin

8 min readApr 18, 2020

What is CasinoCoin?

CasinoCoin, a Consensus Ledger Fork of XRP’s codebase (rippled), is an open source, peer to peer cryptocurrency specifically designed for the regulated and online gambling industry. They plan to revolutionize the regulated gambling industry through the use of blockchain technology, utilizing its many benefits of speed, cost and transparency. The nature of blockchain technology means that regulators will benefit from the most secure and transparent funding system available today. A near-perfect anti-money laundering (AML) environment utilizing the latest KYC technology coupled with a new, proprietary AML tracking tool; the most advanced and thorough in the industry.

This is just a small overview. I will not be going through the details of exactly what CasinoCoin is and does in this article as I will be focusing on what will drive price.

You can find more information in my many articles: https://medium.com/@HolyK1cks

Official Presentation: (https://casinocoin.org/doc/CasinoCoin_Presentation_en.pdf)

Why I invested: (https://medium.com/@HolyK1cks/casinocoin-and-why-i-invested-935ecfb28e54)

Community Relay Nodes and Transaction Fees

The first thing I want to dive into is some infrastructure of the CasinoCoin Ledger (CSCL). It is important to understand how the ledger operates, what happens with transactions, what fees and costs there are and if CasinoCoin is deflationary or not.

There are 2 types of nodes. One is a validating node and the other is a Community Relay Node. Validating nodes are managed by the CasinoCoin Foundation in order to maintain security. The CasinoCoin Foundation will initially control 80% of all Validating Nodes (percentage needed to reach consensus) running to ensure integrity and will validate all transactions on the network. These will evenutally be spread out to other businesses who partner with CasinoCoin to ensure there isn’t a bias consensus. Community Relay Nodes (CRN) help to spread the global span of the network and to handle the load of transactions.

Here’s how it works: The nodes on this system help to stabilize the network. Each of the nodes relay transactions to validators and act as a wallet server.

Coins that are collected as fees and would normally be burned by the network are re-distributed to those operating the nodes.

If there are 1,000 nodes operating, and the network collects 100,000 coins from transaction fees, each operating node will receive 100 coins.

As a community incentive, everyone who owns 1,000,000 CSC can set up a CRN and will receive rewards by offering this service to the community at large. When 1,024 ledgers are processed, a reward will be generated to create a payout for those providing a valid qualifying CRN to the CasinoCoin Foundation. Payouts will occur only for balances of 1,000,000 CSC and above.

1,000 CRN’s means 1 billion CSC will be locked up from the circulating supply forever. These people who choose to run a node are always able to sell and move their 1,000,000 coins, but they will lose their CRN spot if their account doesn’t hold 1,000,000 CSC. Another person will then fill this spot. 1/40th of the supply taken out has a large effect on price.

These rewards (CSC) come from transactions (gas) happening on the CSCL. Every transaction costs .25 CSC currently (.25 CSC right now costs less than 1/100th of a penny to give you an idea), which is subject to change and is on a scale. As price goes up, this fee will change, but will roughly be of the same value (sub pennies). This transaction, whether that be from a token partner, sending coins to a friend, exchange, or operator, will have this cost of gas (.25 CSC). After 1024 ledgers are processed, these fees are then distributed to the validating and community nodes.

CasinoCoin is not deflationary like its code copy twin XRP. Coins are not burned, but recirculated through these nodes and eventually sold back onto the open market or kept for a later date. So how will price rise if coins are recirculated back into the open market eventually? Let’s dive deeper.

Speculative Investors

This is the most obvious driver of price as CasinoCoin is a digital currency. It is trade-able on the open market for everyone to buy or sell. Ideally, price goes up when there is a boost in awareness for new investors, big news is released causing a spike in purchases, or there simply being more buy pressure than selling pressure.

The best part about CasinoCoin, and why I am so heavily invested in the project, is their focus for utility. Speculative investors can only get a project so far. We have all seen this inside the crypto space, and I’m sure more than a few names popped into your head. CasinoCoin will be having actual usage from companies and players.

The Bankroll Manager

The Bankroll Manager features built-in KYC (Know Your Customers) and AML (Anti-Money Laundering) capabilities. It will also provide on-boarded users with direct access to some of the world’s top regulated gaming sites, and the opportunity to deposit, bet and withdraw in CasinoCoin (CSC).

You can read more about the BRM and the first online casino to use it here: https://medium.com/@HolyK1cks/goodgaming-casinocoin-and-the-bank-roll-manager-9be33a130ab

CasinoCoin will be available to be purchased directly by gamblers within the app by debit or credit card. This will be handled by a third party payment processor that is tied to a cryptocurrency exchange. The more gamblers and purchases there are, the higher the price will go on the exchange as it also creates volume and liquidity. Note: gamblers will also sell back into fiat after their session is over, but, “The house always wins.” Price should continually go up as more people lose money than win with the operator they are playing with. Every transaction and transfer that is made will also have the fee (.25 CSC)

Operators and the BRM

Operators of online and landbased casinos will have 2 choices of how they want to handle CSC transactions:

The first example would add CSC as another currency option on the operators site. This means users buy CSC in BRM, transfer CSC and play on site, and transfer CSC back when done. All transactions of course have gas costs as well. Operators will have to have a stockpile of CasinoCoin or be linked to a payment processor for payouts. Either way, this means direct buy pressure on the open market for CSC.

This second example would allow operators to convert CSC to fiat on the spot, removing the need to add CSC as a currency option. CasinoCoin will be purchased inside the BRM, transferred and converted on the spot to fiat at the operator site, played with, and then deposited back into the BRM as CSC. The players on average will lose more CSC than they win, creating upward buying pressure through their initial purchase.

Token partners and gas

Token partners have to directly pay for gas payments on the open market for every transaction that occurs for them. Some also will pay a premium fee on top of the original gas cost depending on what they are doing and what is agreed upon by the Foundation and the partner. This means that the company has to have CasinoCoin on hand to pay for these fees. How much they buy at a current time is up to them, but they will need to pay for these fees.

For example, Cammegh, the worlds leading roulette manufacturer, who have partnered with CasinoCoin, created a custom token to create an immutable audit trail for each of their roulette wheels. Each spin will be tracked and stored on the CSCL. These data pushes from each transaction cost gas (.25 CSC as of now) All tokens will be like this, regardless of their usecase.

Token payment

Companies that decided to create their own branded token will have to pay $25,000 worth of CasinoCoin at a specific time that is agreed upon by them and the foundation. This $25,000 is also purchased on the open market through exchanges, just like a speculative investor would. The more tokens that partner with CasinoCoin, the more CSC that is purchased through these fees, along with gas costs from transactions these tokens generate.

Number of Gamblers, Companies, Wallets

This will be one of the most important factors for the price of CasinoCoin to rise. All of the examples above (except speculative crypto investors) either have CasinoCoin go back directly to the Foundation or are recirculated through nodes. These will all eventually be sold back onto the open market if the Foundation or holder of that node decides to do so.

What will keep price rising and holding steady is the number of gamblers, companies, and investors that will be holding CSC. Each CasinoCoin wallet has a reserve that needs to be met to be active. Once created, these coins will be locked onto that specific address forever. This address is forever logged onto the ledger, and therefor cannot be deleted. The reserve is small, but still has a small impact if millions of wallets are created.

Like with any asset, the more people that hold it, the more it becomes scarce and the higher the price goes. CasinoCoin will have gamblers, companies, and investors holding CSC. In the end game, just imagine hundreds of thousands of gamblers (perhaps millions) using CSC to gamble with, hundreds or thousands of companies using CasinoCoin directly or as a token partner, and the large number of speculative crypto investors that will come on board. The great part about blockchain is you can track these numbers publicly. CasinoCoin has a great site where you can follow along with every account created, transaction that has occurred, and token partner on the ledger at https://csc.observer/

Closing Thoughts

As you can see, the sheer amount of utility and number of people using CasinoCoin other than a speculative investment will have a tremendous effect on price. It will also save CSC eventually from pumping and dumping like almost all other cryptocurrencies as liquidity and upwards buying pressure will be tremendous. This of course is still a while away as the foundation is in its infancy, but once operators and tokens start going live, it will have a snowball effect. I’m invested this early because of this massive potential. CasinoCoin and the foundation have a chance to grab a significant portion of the global gambling market as well as other usecases. It won’t take long for CSC to be one of the best performing cryptocurrencies in this space, and I for one want to be a part of that ride up.