Thank you for reading, I am Dukefish, an EOS advocate and this blog series “Life of a Small Time Investor” is intended to share my experience with the crypto world and help those learn from my mistakes and triumphs. Though as always, this blog is not investment advice just how the chips have fallen for me so far. The greatest knowledge I can part to you is make sure you Do Your Own Research!
Weathering the Storm
So the price of Bitcoin (BTC) continues to tumble with red percentages seemingly across the board, this weekend being no exception. How low will it go? Where is the capitulation bottom? Nobody truly knows, and those who claim to do so, are most likely wrong. Bitcoin is still the ‘gold’ of crypto and is bringing all the other markets down along with it. As it is now BTC sits below the $4000 USD mark which many commentators prayed was the bottom and there is every chance it will continue to go south. Many youtubers and twitter accounts related to crypto have gone dark and silent and there seems to have been a mass exodus of people leaving this space, as the huge returns they were all hoping for have never manifested. It is interesting to see if BTC drops below $3,000 USD as this seems to be the consensus that mining costs are definitely not profitable below this mark.
Again this correction of the market is positive in terms of wiping out weak hands and novices from the investing space, and the volume of transactions has been high, so who is buying all these cheap coins? There are numerous conspiracy threads and comments on people suspecting market manipulation or that institutional money is driving price down before they decide to get into this market. It should be noted that the Bakkt platform was delayed a month due to ‘too high demand’ for its services, ETF’s are coming eventually once all the legality can be ironed out, and big banks (JP Morgan, Goldman Sachs etc) are all opening crypto related trading desks. These are big players and they would not be interested in a market that is seemingly going broke.
The underlying principals of crypto haven’t changed and the technology is continuing to evolve. It does not the big institutional players to come along and save it, its fundamentals were created to overthrow and usurp these people in fancy suits. This space is not going away, there are lots of doom and gloom and people spouting this is the end of the crypto market! This is all nonsense as the market has suffered several of this 75% or greater drops before. Though there is a chance BTC could crash down to nothing, history dictates that it will survive, it may not bounce back to ATH but this is it not a space that is going away. As a small time investor grabbing greater quantity of coins at a low value seems like a good idea, but only with the assumption that long term things are going to turn around.
Enough about the fall of Bitcoin, I am still balls deep with my love and possession of EOS and what is occurring in this ecosystem. I’d like to draw your attention to the EOS alt coins that have had there own share of drama these past few days. EOS Go homepage has a wonderful UI on the marketcap of EOS tokens and there has been some green on this board which is a welcome surprise. There are many projects on here, some of which I still have not had chance to properly research and explore. Though it is good to see that a large and healthy market has risen here on EOS and can only be a positive thing for moving forward into the future.
Screencap from EOSGO Homepage
The most noticeable and news worthy movement has been the fall in the price of EOSBlack. This was a genesis block airdrop and was until very recently the most valuable of the EOS alt tokens. But its price dropped from approx 0.25 EOS to 0.0034 in just one day. Now EOSBlack is essential its own sidechain with the intent of creating a space for new Dapps to be created funded and released. While noble there is no product to date and the value of these tokens was mainly due to speculation. It appears the reason for such a drop was initial private investors got skittish and dumped there large volumes of tokens due to malicious rumors circulating in there space.The block producer EOSKorea have also issued 56 million new Black tokens over the weekend, so the volume of tokens has increased driving the price down, though reading the whitepaper of the company this issuing of tokens was discussed.
Thankfully I had sold my Black tokens several weeks ago when I was fully engrossed in DICE and gambling, so I have not been burnt like some people who were still holding these coins.
This morning a video appeared on reddit by /u/grandmoren regarding an urgent update to Scatter. It appears a vulnerability with the latest version of Scatter has been identified and patched rapidly. The details of the vulnerability have not been explained as of yet as people are encouraged to update to this new version asap. They do not what it revealed as malicious players could choose to exploit it further. It is highly critical that you update to the latest version now available on Github here.
Once significant numbers of updates have been established more news on this will be presented to us all, but if you use this, which many people on EOS do, it is crucial that you go and update your app.
As always when I discuss these gambling apps, I always start with this word of caution, gambling is addictive and you can lose it all. Remember to only wager what you are willing to lose. The casino model is one of the most profitable businesses out there for a reason. Now warnings aside, I am aware there are plenty of dice games and and now a couple of Baccarat sites out there. However I have been dabbling with the only gambling site that offers something new, EOS Crash.
Now EOS Crash is essential a digital version of chicken. It is based off of the original “Crash game”invented originally by “Bustabit” and generated over one and a half million Bitcoin wagered in total. It has also appeared on the Ethereum network hosted by Edgeless Casino. It differs from dice games in quite a few ways.
- So you place a bet and wait for the game to begin. A multiplier begins to rise in value, starting at x1.00.
- The value continues to rise and then it eventually stops and ‘Crashes’.
- You are able to place a bet and assign a “stop value” for the multiplier. For example x2.00.
- As the multiplier rises, if/when it reaches your “stop value” then boom! You win and get a payout.
- If it “crashes” before your chosen “stop value” then you lose.
Oddly it took me a little while to fully understand and get my head around this. It is worth noting even if the multiplier rises to x10.00 for example and your “stop value” was x2.00, you still only get paid out at the “stop value” of x2.00.
You can however do the more adrenaline pumping and nail biting method of placing a very high multiplier. Say you put a “stop value” of x50.00 and then start to watch that line head upwards. Then the option to “Cash Out” appears and you receive a payout at the current multiplier value, if it is lower than your stop value. You could risk watching it rise until it hits your “Stop Value” or you can chicken out and cash out at a lower multiplier. Hence it really does feel like a game of chicken playing it this way and I tried it a few times and it was too much for me!
As with all these gambling apps EOS Crash has their own coin, “Crash” (no surprise there!) that pays out dividends. At present no dividends have been paid out but the first payout is due on 1st December 2018 with the predicted value of per 10k CRASH: 7.145 EOS. (At time of publishing). According to their whitepaper the dividends offered will be 60% to players and 40% to the team. The whitepaper also highlights that they will implement monthly or weekly dividends drops but it has not been decided as of yet.
Which if you want to farm for the dividend, be my guest though my brief exposure to this game I saw very few users. I do not think I saw it peak into double digits of users while I was playing. The majority of other people strategies was to bid at a very low multiplier, so I assume they are farming for the crash tokens.
Now I played for several hours over the last few days and it seems the average range the multiplier crashes at is between x1.50 and x4.00. Yes, higher values do occur and the highest I ever saw it go was x97.40, which is an utter madness. The UI is pretty clean and easy to use, you can see the last ten games or so in the top right of the screen.
EOS Crash is a welcome variation to the gambling dApp market and it does provide something new in the EOS ecosystem. I couldn’t find a definitive answer on what determines the cause of a crash but it is still gambling so there must be some RNG code hidden in there somewhere. I do not think that it is going to be replacing traditional dice gambling Dapps in terms of market-share at present, but I look forward to seeing where the team take this game.
The bear market is still here and shows no signs of going away, the downward trend of red is also strong and it seems that the year is going to end on a low point. It is still a great time to pick up coins at these low prices as when it there were at ATH people were crying out “Wow I wished I purchased at lower prices”. The EOS space is still going strong and like I said earlier in the article, the technology is still there, the infrastructure has not gone away. Cryptocurrencies are here to stay and we all just need to weather this storm.
Thank you for your time!