The technology that inspired Bitcoin and cryptocurrencies is now coming to the aid of gambling companies. A Macau-based entity has announced plans that it wants to establish the world’s first blockchain-based casino. The news is definitely exciting, but need to be taken with a pinch of salt.
Malta and a Future of Blockchain Gambling
Macau has long been the world’s foremost hub on all things gambling. Landing at the airport will put you right next to Evolution Gaming’s headquarters and while you won’t see many casinos trundling down the narrow streets with no pavements, you will certainly notice other gambling authorities and tech companies around. They all flash down on the traveller. Now, the global gambling market is expected to reach $525 billion by 2023, and we take a look at what the future holds.
Just recently, De Club International Company Limited of Macau announced it is looking to establish a blockchain-powered casino gambling club. This is a nice change from the slew of companies that have been pushing to established their iGaming operations online. According to former Jimei International CEO Kennis Wong, the plans are shaping up nicely.
Mr. Wong is helping the initiative by planning the Initial Coin Offering (ICO) which should raise estimated $1 billion and help establish the blockchain casino, the world’s first. Reading through the whitepaper of the initiative, you find the De Club International Company Limited’s intentions, which are exactly what blockchain is all about.
The company has argued that it would seek to cut processing times and establish a new trend that will introduce safeguards against fraud, making sure that the casino industry will be regarded with trust rather than suspicion.
However, De Club is not going it alone. They will rely on another company in Macau, the Wide Rich Global Company Limited, which will work on the ICO by introducing 20 billion DEC tokens. If the ICO goes well, the proceedings will be used to open a chain of casinos, not necessarily all of which will be based in Macau.
Adding Substance to Big Claims
Naturally, making big promises with ICOs is not an uncommon practice. However, Wide Rich Global has explained that all of its DEC companies will be a “cash-backed token”, meaning that real money will be at stake when investors are coughing up.
This is helpful in at least one way – it signals commitment on the part of the organizers who are prepared to deliver on the promises they have made. There have been some concerns over the network that the company intends to use, citing Ethereum as ill-suit to meet the particular needs of the undertaking.
The project hosts are also trying to determine whether Bitcoin Cash (BCH) can prove a smarter solution here. By purchasing DEC tokens, investors will also be able to host their own games, giving the entire endeavour a distinctly personalized touch.
To put things in perspective, the organizers hope to see their ICO come off by the end of 2020, which provides them with sufficient leeway to carry on a project of such scale. However, there are many dangers in the crypto sectors and unmet promises are often the source of much ill will.