ZeroEdge: punting on a cryptocurrency for gamblers
New Ethereum-based coin from an online casino.
Online casino ZeroEdge has announced an initial coin offeringthat will taget the gambling industry. The decentralised online casino wants to offer players 0% house edge casino games, fee-less betting on sports and an open source platform for building online games. By hooking in their own token. called ZeroCoin, they'll be able to use the Ethereum blockchain to create a trust system for the cryptocurrency.
The goal is to increase the number of users and thus increase the value of the network. This invokes Metcalfe's law, which says the value of a network is proportional to the square number of connected users.
Adrian Casey, the CEO of Zero Edge said: "Players are not required to pay any fixed amount of money to be able to play at the casino. This can only be achieved by creating a closed loop economy with its own token where players purchase the token with fiat or crypto. Since the supply of Zero is limited, its value is directly proportional to demand."
In a summary of the system, ZeroEdge says as the casino hasn't stacked the games in their favour, gamblers can play. But to play, they need to purchase ZeroCoins. As more gamblers play, and buy more coins, the value of the coins increases. Players can deposit and withdraw funds without any fees or delays, the developers claim.
According to a whitepaper published by ZeroEdge, the value of ZeroCoin to players aren't the potential winnings and cashflow generated by players but in increasing the value of the coin.
Most people are aware that casinos, bookmakers and other operators of gambling markets aren't likely to altruistically provide the masses with games to play unless they're making a buck along the way. As in any gambling system, tokens you purchase act like poker chips - they're only of value in the game while you are playing. If you lose them in the game, the other coins or fiat currency used to purchase the ZeroCoins are lost too.
So, even though you're playing with a cryptocurrency, there will likely be real world losses.
Like CoxxxCoin, it's hard to see why an existing cryptocurrency can't be leveraged. And as with any new ICO, it's important to do your due diligence and research.