I’m sure most of you have at least heard of EOSBET’s dice game that has been running for about 6 weeks. They have seen huge volume numbers with relatively low daily users. This suggests that whales are betting heavily and consistently which is great for any casino. After doing some research into the financials of this dapp, I believe that BET tokens will appreciate rapidly in price when they hit exchanges in November. Here’s why:
Dividends For Life – BET tokens are not utility tokens that are used to gamble on the dapp. Instead, holding BET is more like owning the casino and receiving your cut of the profits. EOSBET has released a statement that they will begin paying out weekly dividends starting in November. They are paying out 100% of the profit to the BET token holders. Profit is calculated as 80% of total revenue, with 20% being used for operational costs. The team made it very easy to calculate dividends by sending the profit directly to the account named eosbetdivs11. Since there is a total supply of 88m BET tokens, you can calculate your share of the dividend pool by doing this: (eosbetdivs11 balance / 88m * your BET balance). These dividends will also include profit for other games that are currently under development.
Supply & Demand – The team has been very frugal with selling or handing out BET tokens. They have an interactive airdrop token that gives gamblers a fraction of BET on each bet they make. Other than that, there was a small pre-sale that ended quickly and the vast majority of BET tokens are still held by the casino. After studying the blockchain, I have determined that the circulating supply of BET tokens is currently around 11.25m. The team is holding the majority of tokens to be able to distribute them gradually over time to people who actually use the dapp and gamble. I think this is a great idea since it incentivizes people to play as well as spreads out the tokens to many different holders, not just whales. With a huge demand from investors that missed the pre-sale, combined with the profit sharing model and the 11.25m circulating supply we could see a rush to buy these tokens from long-term investors. If they reach the same market cap that Funfair currently has, we will see a price of $7/BET.
Capable Team – This team is awesome. They were originally trying to develop a dice and slots game on Ethereum but ran into the same problems that all devs run into on that platform. Instead of hoping that some complicated scaling solution is implemented someday, they made the smart move to EOS. That shows flexibility and guts to switch platforms. They have also dealt with multiple bugs and hacks since launch. Each time it was handled with urgency and communication to the users. They lost about $200k in a hack but explained why the problem happened and what they did to prevent it. Problems are going to happen to any crypto team, but it is how they handle them and overcome them that matters the most to me. This team is thinking long-term and is setting themselves up to be the best blockchain casino on any platform. Here is a recent example of the communication this team regularly puts out: https://medium.com/@eosbetcasino/eosbet-update-dividends-c791cee5f953
Profitability – This should be the most obvious reason why BET tokens have amazing fundamentals. THEY ARE MAKING MONEY! When you look at the majority of ICO’s that raised massive amounts of money, how many of them are operational? Out of those that are working, how many of them are consistently profitable? Out of those, how many share the profits with token holders? If you know of any, please let me know in the comments. Everyone else took the approach of write a whitepaper, raise huge money, try to build a working product. The EOSBET team did it a little different, they built a product, became profitable, distribute tokens out over time to users. This is a development plan that should be implemented by more teams in the crypto space. Profitability should not be talked about, instead it should be proven on the blockchain for everyone to see.
Total # of bets made – 5,224,000
Circulating supply of BET token – 11,252,000
Total wagered – 48m EOS ($267m)
Total revenue – 891,000 EOS ($4.97m)
Start date – 8/20/18
Largest single payout – 16,565 EOS ($92k)