CEO of Amazon, Jeff Bezos, once said "your margin is my opportunity". When a new market opportunity arrives and is proven to have a potential of a gold mine, competition arrives quickly armed with shovels and pick axes.
This is exactly what happened in the world EOS apps. EOSBet was the first crypto casino to enter the market with its Dice game. It became an overnight success. In the first month it generated daily volume of 2.4M EOS and became not only the highest volume EOS dApp, but also a dApp that generated more daily volume than all of the ETH and BTC-based applications combined. New competition was only a matter of time and on Sep 21st BetDice officially launched its competing product.
Very quickly BetDice dethrowned EOSBet as the top dApp by volume and number of transaction. At the time of writing, in the last 7 days it has generated 38.4M EOS in volume, which is 10x the amount of volume generated by its nemesis EOSBet.
BetDice is a simple, yet ingenious crypto app that got launched with a dice rolling game. The Dice game rules are straight-forward: a die (singular from "dice"), controlled by the pseudorandom number generator engine, spits out a number between 1 to 100. Player selects a number below which he/she believes the die will land. If the player guesses correctly, he/she receives a reward based on the probability of success. As an example, pick "roll under 96" wins every time a number is generated below 96. Player has a winning probability of 95% and will receive 1.0368x the wager amount. If the outcome is 96 or higher, the entire bet is lost. This week the team also launched their second game under the BetDice umbrella - Lottery.
There's no need for me to analyze the exact details and various strategies behind each game. When i was preparing for this post, I found this excellent write-up by EOSModerator who reported on the intricacies of the game ad nauseum. Feel free to peruse them yourself.
What I do want to focus on is reasons behind BetDice skyrocketing popularity and future growth potential.
Reasons for success
Team: Professionalism, speed and adaptiveness
BetDice is only a 1-month old project. Given its nascent age it is really astounding how much thought has been put in developing, designing, marketing, incentivizing and promoting this project. Yes, BetDice has started as a "fork" of EOSBet, another crypto casino project, but it has since long evolved into something a lot more mature and diverse.
The team is located in Hong Kong and has significant amount of game developing experience, both online and mobile. Dice is their first venture into crypto space. So far it has stuck closely to the roadmap in which it promised to develop up to 3 new games per month. Judging by communication coming from the team so far, I am very impressed with its professionalism and expertise in the field. They focus on all the right metrics of running online gaming, gambling and crypto businesses. DAU, LTV, CAC are the metrics that are frequently being discussed by the team members and community. It is clear that the team does not only have short-term goals of making quick buck on the crypto hype, but rather focuses on the long-term strategy.
One of the biggest success factors that propelled BetDice to the top of the dApp leaderboard is the mining functionality for its DICE token. DICE mining harkens back to early bitcoin mining days. BetDice started by paying out 100 DICE for each 1 EOS wagered in its game. After each 5% of DICE pool has been mined, DICE reward gets halved. This kind of structure incentives early-adopters, creates immense FOMO and fuels explosive growth. We are currently at 6.25 DICE/1 EOS reward - a significant reduction from the original reward. Yet, less than 50% of the entire DICE pool has been mined yet. So if you think you are late to the game - you are not!
DICE Token trades on the exchange
Speculation and gambling have always come hand-in-hand. It is not surprising that the biggest gamblers could also be biggest speculators. BetDice team recognized it early on and provided that opportunity for its gambling customers to try their luck in the market by listing the DICE token on several decentralized exchanges. From early days of the project players could either hodl their DICE tokens for an investment opportunity, or speculate on its value in the open market. Either way price discovery of a DICE token has played a key role in the growth of a project, as gamblers who accumulated tokens could immediately see their value by getting a quote from one of the exchanges. Since presale DICE token has generated 10x return to its investors, which is an unprecedented return for a crypto project in today's market conditions. DICE token is now traded on the following decentralized exchanges: Newdex, Dexeos, Southex, Deltadex, EOSDAQ.
Vibrant and active community
BetDice manages a vibrant community of supporters. Their English-language Telegram group is extremely active despite being only 1700 members strong. Some community members create very well thought-out pieces of research on DICE token and project valuation. Project also managed to gain attention of several EOS Block Producers who are frequent commentators in the group.There are also other language dedicated groups and channels, such as Korean, Chinese and Russian.
Involved community serves another important purpose. It works as an extension of the biz dev and marketing functions of the project as they have a direct incentive to help expand project's user base. On the other hand, disgruntled community acts adversely by demotivating other existing members.
What future holds
Future for BetDice looks bright and promising. Players are excited about the upcoming games. Baccarat which is the most popular game in the Macao casinos adhering to the Chinese gamblers has been discussed as a potential addition to the BetDice gaming portfolio. Sic Bo, or Hi-Lo is another game popular among the Asian players.
Overall, crypto casinos have a number of advantages over the traditional physical casinos, as well as the non-crypto online gambling establishments. Some of these were outlined in the BetDice whitepaper (available upon request from the team):
1) High Flexibility. Crypto and online casinos can make changes on the spot. Promotions can be announced and implemented immediately, payout ratios can be adjusted and maximum bet amounts changed all depending on the current market conditions.
2) Traditional casinos tend to have much slower speed. Number of games a gambler can play in the physical casino in a unit of time is limited. In a crypto casino, one can technically play one bet each second. Deposit and withdrawal processes are also very slow in the traditional casinos. If you ever stood in line at a casino to cash in your chips, you know what we mean.
2) Tokens are valueless. Chips at one casino are worthless outside its walls. BetDice accepts payments in both EOS and DICE tokens so far. EOS is a widely-accepted cryptocurrency that can be used in multiple apps and for multiple purposes.
3) Traditional casino games are not provably fair. Third-party verification and auditing is necessary, which brings centralization concerns into the equation.
4) Online and traditional casinos collect a lot more private information on its players than crypto casinos. This could be a big detractor for people sensitive about disclosing their private data.
All in all, crypto casino apps are poised for taking over a large share of the online and traditional casino market. There are obviously a lot of caveats that need to be overcome, regulation being the biggest of them. As of now projects like BetDice exist in a pseudo-legal environment depending on its location and location of its players. However, this does not seem to stop gamblers from flocking to dApps like BetDice for the opportunity to gamble and potentially earn extra passive income.