Gambling initial coin offerings (ICOs) are on the rise as the industry tries to cash in on the hottest trend in crypto-currencies.
This is despite ICOs facing regulatory scrutiny and increased threats from hackers.
An ICO is an unregulated means of crowdfunding via use of crypto-currency. Ethereum is, as of 2017, the leading blockchain platform for ICOs, with more than 50% market share.
The ICO is the second big disruptive model to come from the blockchain after Bitcoin, enabling decentralised fund raising, but there are not yet many clear regulations in this area.
Decentralised gambling was cited by Ethereum founder Vitalik Buterin as an application that would have numerous benefits over the existing centralised system, "creating gambling services with near-zero fees that have no ability to cheat".
With blockchain technology, risks against embezzlement are also minimised due to the restrictions on access to the investment funds. The payout amount can be locked on the account of the smart contract at the time of placing the bet and cannot be expended or spent prior to the settlement. None of the parties can make changes to the bet that has already been placed, or spend the prize fund.
Johannesburg-based Gron Digital, a blockchain-based open gaming platform, has launched its ICO. The gambling platform provider says it aims to revolutionise the gaming and betting industry by overcoming legacy issues, and protecting both player and industry from the myriad of challenges that impact its reputation and growth.
According to Gron Digital, the gambling and betting market's reputation is limping into the 21st century, held back by problems around fair competition, fair gaming, trusted service providers, random number generator and return to player percentages, and parimutuel betting.
Gron Digital says it is using technology built on the blockchain to overcome these drawbacks on a secure, transparent, auditable and fair platform for participating individuals and organisations.
"Gron Digital is a self-sustaining ecosystem that will offer casino gaming, lottery and sports betting on an open platform, designed to reinvigorate flagging player trust through cryptographically verifiable transactions that require no human intervention," says Tebogo Makamo, CEO of Gron Digital.
"Extensive research and development, as well as customer feedback, has helped ensure Gron Digital will house established and reputable gaming and betting products," he adds.
The ICO has already launched with the intention of raising the equivalent of 57 000ETH, which will be allocated to software development, operations, advisors, marketing, legal fees and contingencies.
The company says once the crowdfunding initiative succeeds and the utility tokens are issued, Gron Digital will be listed and traded on major exchanges.
"ICOs currently have plenty of negative press surrounding them as they've been overdone, overworked and have often under-delivered," adds Makamo. "However, not all ICOs are created equal and the one developed by Gron Digital has been crafted by advisors and trusted partners with extensive gaming and betting industry experience. As a result, the platform is specifically targeted with properties built in to protect consumers, children, addictive personalities, suppliers and more."
The Gron Digital project focuses on building the credibility of the supplier, enhancing the legitimacy of the industry, and protecting both user and service provider from the impact of illegal operators, the company says.
"Our solution is an intelligent blend of the cryptography and genius of the blockchain with the modern demands of the gaming and betting industry, creating a space of trust, transparency and secure identity," concludes Makamo.
Share