Here is my review of Ethertote.
ETHERTOTE - Betting Dapp based on Tote betting
Ethertote is an Ethereum betting Dapp that works similarly to “Tote” betting in the UK. If you aren’t familiar with Tote betting, basically you bet on a horse and all the stake money for the race (across all horses) gets pooled together to form a big pot of money, and is then divided out to the winners who bet on the horse that won.
Ethertote is a similar concept, however rather than betting with money, you bet with Eth, and rather than betting on horses winning a race, you bet on crypto’s performing well over the course of a week. There are 25 crypto’s to pick from, which are the top 25 crypto’s based on Market Cap. Whichever crypto performs best over a week is the winner, and if you bet on that crypto, then you get a share of the total Eth pot.
Because there are so many crypto’s to pick from, it won’t be easy to win, however you can bet on more than one crypto if you want to, which can potentially lead to a strategy where you can staircase your bets as the week goes by if the crypto who you think will win is gaining ground. Also, you can bet on Tether as a fallback option which tends to not be affected as much as other crypto’s when the market is dropping (as we have seen more often than not over the last 6 months!)
The minimum bet is 0.05 eth (roughly $14 based on current prices), but the potential returns could be huge if enough people bet, and you are lucky enough to be on the winner.
What is particularly interesting is the dividend. It pays 5% of all the pooled Eth to a “token fund” which gets distributed to TOTE token holders, which means you could actually make a regular return with this token even if you personally never play it and are not into gambling. I’m not a massive gambler myself (A £5 Saturday football accumulator and a bet on the grand national is about as much as I bet!) but there are obviously plenty of people out there who do bet with Eth (as FOMO 3D has proven), especially in the Asian and US markets.
The team behind the project have chosen to remain anonymous, which is a concern, however they do explain their reasons for this by clicking on a link on their “Team” page, which takes you to a medium posting about why they have decided to stay anonymous. Although isn’t ideal, I can at least understand from reading their post the reasons why they have chosen to keep their identities private. On the plus side, they are making a big deal about verifying and publishing all their smart contract code, which if you do understand ethereum and blockchain tech, you will see that it can’t be tampered with once deployed.
The whitepaper isn’t as detailed as some others I’ve read, however by the time I’d finished reading it I couldn’t really think of any questions I had that it hadn’t already covered, so I guess it served its purpose.
In terms of competition, the only one I can find that is similar is Ethorse, which is a three-horse-race betting Dapp, where you pick one of the three horses, and whichever horse wins after an hour, you win a share of the pot. In this game, the three horses happen to be Bitcoin, Ethereum and Litecoin.
The key difference between the two is that Ethertote gives you 25 crypto’s to bet on as opposed to 3 with Ethorse. Also the Ethertote game lasts for a week rather than 1 hour. I can see some advantages to it running over the course of a week. Firstly, it means you are not in any mad rush to put your bet on, you can monitor the markets, see what other people are doing, check gas prices aren’t too high, etc. Also, it could have an effect similar to a lottery where the more people play, the more new people want to play, because the prize is getting bigger and bigger.
Another interesting element is that Ethertote only accepts 1000 bets for each crypto, so there is a potential “fear of missing out” element whereby the front-running crypto gets jumped on really quickly which increases the betting pool, which then attracts more players.
In terms of buying tokens, the ICO only lasts for a week, which is going against the grain of a lot of other ICO’s that go on for weeks (even months) and Ethertote have said they will burn all unsold tokens, which means for those who bought them, they would (potentially) be worth even more if you were to trade them on the exchanges due to the limited supply.
Based on this, I could see a potential price spike as soon as the ICO ends, which is good for a short-term investor who wants to get in and get out to make a quick profit.
Looking at their GitHub, they’ve been uploading stuff since February, and their domain name was registered on Feb 16th, which is encouraging as it means they’ve been actively developing the project for over 6 months, as opposed to some ICO’s that seem to appear from nowhere and then launch their ICO.
Been around for over six months
Have a working Dapp on their website
Limited supply of tokens, of which unsold tokens get burned
They are locking their own tokens and Eth raised from the ICO into time-locked smart contracts
Gambling - people love gambling
Potential to earn a lot of eth if you are lucky enough to win
Earn a dividend from games played if you hold the tokens
People may see the game as too difficult to win
Fairly simple whitepaper
On the whole, the good points outweigh the bad points for me, so I think I’ll be buying some, but I’m really interested in what others think.