ICO is the hottest keyword in Google searching engine recently, you may easily find there are ICO projects in different industry. According to a Swiss bank, Credit Suisse, Gambling & Gaming companies are leading the way in ICO.
The Reason behind these figures
Vitalik Buterin, Ethereum creator, once said that decentralization in gambling poses a great deal of advantages when compared to gambling firms operating centralization.
The Swiss bank, Credit Suisse, believes that gambling firms can benefit, to a great extent, from the use of blockchain and smart contracts technologies and cryptocurrencies. A great benefit is an anonymity it gives to users. The anonymity comes with gamblers not needing to go through a rigorous process of dropping, on the site, means of identification.
That’s why tons of layman trying to get into this multi-billion industry and start their ICO project. However, Gambling industry is a highly regulated industry all over the world.
Secret even the ICO advisors won’t tell
A lot of ICOs claim to have experience, when in reality, they know nothing about the niche they are focused on and how ICOs work. They butter up the services of their platforms to investors, refusing to spill the truth.
Most of them do not understand the technicalities like how to enter the market, you can easily found that they are still:
1) Struggling for a gambling license, even ICO end for years;
2) “Buying” license from a infamous country;
3) Listing as a Whitelabel but claim they are the owner.
Isn’t scary enough? Let me tell you more, the worse thing is none of them focus on pain point of the industry. These ICOs don’t think of how they solve the existing problems of existing operators in their niche, neither do they understand their business model. Some of them even cannot constructively state where revenues will come from.
These ICOs usually fail at the end and become scams. They might not have begun with the intention of scamming, but the failure of seeking out partners to further expand their business, other sources of revenue in case the ICO doesn’t give them the amount of fund they need, increase the loss.
It is easily to find some of the gambling platforms running ICOs have spent their years running illegal bitcoin casinos, ad is clueless about the legality of running a legal online gambling platform. This makes the platform crash and the creators end up in jail, with investors groaning in sadness.
Some of the betting ICOs are underestimate the regulations and legalities of the online gambling industry. They think that getting the licenses needed is easy, fast and cheap. Let’s look at Funfair. After two years of ICO, they are still ‘applying’ for a gambling license… (Even top 100 in coinmarketcap)
How to pick a profitable ICOs?
Unlike other ICO projects, running a project in gambling area is very risky. You are not only putting your money at risk but putting your freedom at risk if the platform is not legal. Some gambling platforms are known for illegal practices, it is necessary to invest only in platforms with appropriate licenses.
- Invest in a project with persuasive gambling license. Before investing in a platform’s ICO, it is important to know the Legal Status of the crypto, ICOs. It is necessary that the gambling platform already has a license like UKGC before the ICO. A lot of platforms that claim that they will get the licenses after the ICO, usually do not.
- Find out the purpose of the gambling ICO project. This can be done by scanning through their white paper and critically analyzing their purpose and business model. After that, some questions have to be asked. Does it look profitable? What’s the reason for partnering with this project? Are there other alternatives? These questions are important to the future development and the value of the token.
- Look at it’s team. Are the team members solid? Before investing in a gambling platform, make sure those occupying the senior management level have a minimum of five years. Find out the skills, education, and expertise of the team. Running an ICO is far different from running a coffee shop you cannot learn that from the entry level.
The gambling industry is a golden egg for using blockchain technology in future development. It is worth to invest in this field, but we must choose the project very carefully. See you on the moon!