iDice is the latest Ethereum-based dice ICO to hit the markets. Many others have taken advantage of the hot ICO markets, Ethereum smart contracts and the enormous potential in the gambling sector – which accounts for about half of the bitcoin transactions for instance – to launch their own initiatives. As such, projects like Edgeless, vDice and Etheroll have all found their niches with certain degree of success during their ICOs. So, is there still a niche left for an iDice ICO? Apparently, there is, and that is the value proposition that iDice presents in its white paper.
Basic Characteristics of the iDice ICO
Before delving deeper into the value proposition of the iDice ICO, it is useful to establish its basic characteristics first:
- The ICO started on June 12th, 2017. It will end on June 26th, 2017.
- iDice tokens will be on sale during the ICO for Ether only.
- The structure of the ICO is as follows: During the first hour of the ICO, 1 ETH = 200 iDice tokens; during the following 7 days, 1 ETH = 170 tokens; for the last 7 days of the iDice ICO, 1 ETH = 130 tokens.
- 500,000 tokens will be allocated to the development team.
- Any other tokens that will remain after the iDice ICO, will be destroyed.
- No more tokens will be created after this ICO.
- A total of 5,000,000 iDice tokens were created for this ICO.
iDice Value Proposition
Now that the structure of the iDice ICO is clear, it is possible to analyze the value proposition. Although it seems like this is just another Ethereum-powered dice project in a segment that is quickly getting crowded, iDice sustains there is still a niche for it. The project identified mobile gaming as the niche no other Ethereum-powered dice project has conquered. iDice will therefore focus on this segment, and once it establishes itself as a mobile dice powerhouse, its developers will start focusing on other classic casino games for the same mobile segment.
This could be a good opportunity for investors. Token holders will be able to get their part of the iDice profit, proportionally to the number of tokens they hold. They will also be able to sell their tokens in the market once the ICO is over, so the token will act like stock in a mobile gaming company. Players will place their bets in Ether, and iDice will draw them with low, competitive house edges.
Is the Mobile Ethereum-Powered Dice Market Profitable Enough?
The greatest unknown here is how big the market for mobile Ethereum-powered dice really is. That will determine how much Ether iDice will rake in and how much it will be able to distribute among its investors. Therefore, investors will have to take a leap of faith when they invest. They will have to be comfortable with the following logic:
- iDice will be the first to market with an Ethereum-powered dice game for mobile users.
- It will beat vDice, Etheroll and Edgeless to this segment, giving it a great initial advantage to develop other classic casino games for mobile.
- Given that the global online gambling industry is worth about $47 billion USD, and more of that traffic is moving to mobile, this is a great advantage to have.
- Ethereum is also growing at a great pace, which means it will take an increasingly bigger part of the mobile online gambling industry; Ether will be increasingly popular among players.
- But how much is this small niche worth?
- Remember, out of that $47 billion USD, a significant part of it is fiat gaming.
- Of the remaining part that is dedicated to cryptocurrency gambling, the most significant part of it is bitcoin gaming.
- After isolating mobile fiat and bitcoin gaming, it is necessary to isolate the amount of traffic that is looking for dice games.
- This effectively leaves iDice as the king of a very small kingdom, which no one really knows how much it may grow.
Additional Observations about the iDice ICO
If investors are comfortable with all the above, then they must look at iDice from the perspective of their potential customers. Many players look for bonuses when they gamble. The iDice ICO white paper has no provisions for bonuses. This might turn other potential players off, especially those who are not necessarily interested in provably fair gaming.
Other than that, the iDice ICO looks well-structured and well positioned to succeed. Hopefully the players will follow and the investors, including the development team, will be able to generate further cashflow to create all the other Ethereum-powered classic casino games for the mobile market that they want to create. If that succeeds, investors might see their returns grow exponentially.