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August 1 2017

ICO Alert Report: BitDice

ICO Alert Report: BitDice

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Pre-sale Period:
August 1, 2017 — August 10, 2017 for existing bankroll investors (existing users) with a 20% bonus issued during presale period.

Crowdsale Period:
August 15, 2017 (00:00 UTC) — September 15, 2017 (00:00 UTC)
Crowdsale will end if hard cap of $25,000,000 is reached.

Token Distribution:
CSNO tokens sent to your ERC-223 compliant Ethereum wallet (MyEtherWallet, Mist, etc.).

Tokens will be tradable within 7 days of crowdsale completion, but it’s expected to happen within a few hours after the crowdsale closes.

70% of profits are distributed to token holders quarterly.

Allocation:
68%: sold during crowdsale
30%: retained by project
2%: used for bounties

Use of Crowdsale Proceeds:
40%: used as the BitDice Casino bankroll to pay out winning bets and bonuses
25%: used as reserves that can be used to buy out tokens on secondary markets to reduce public “float” (tokens held by the public)
25%: used by BitDice Casino for capital expenditures, including platform development and business expansion
10%: used for promotion and marketing purposes

Growth Rate:
Fixed supply of 100,000,000 CSNO tokens.

ICO Price & Contribution FAQ:
Amount of total USD contributed divided by 100,000,000 CSNO tokens.

Contribution accepted in Bitcoin, Litecoin, Ether and Dogecoin.

ICO contribution is denominated in USD, and total USD contributed is calculated at the end of the crowdsale or when the hard cap is reached.

Bonus for early contributors:

  • Week One: 15% bonus
  • Week Two: 10% bonus
  • Week Three: 5% bonus
  • Week Four: No bonus

Investment Target:
$10,000,000 investment target; $25,000,000 hard cap

If the investment target of $10,000,000 is not met, the team will still retain the total investment amount for use towards the BitDice project.

Lockout Period:
Team is considering adding a lockout period for crowdsale funds distributed to them. Join the slack to confirm with the team before crowdsale.

No lockout period for crowdsale contributors.

Social Media:
Twitter — https://twitter.com/bitdice
Slack — https://bitdiceteam.slack.com (@alex and @davebd are the team owners/team admins and are best to answer questions accurately)

What is BitDice?

BitDice (“BitDice Casino S.L.R.”) is an online cryptocurrency casino registered in Costa Rica (ID# 3–103–696267)(1) that was founded in 2014. BitDice has the largest bankroll in the cryptocurrency casino industry (4,000 BTC) and the second most Bitcoin wagered of any major online cryptocurrency casino(2). It’s important to note that there is a difference between traditional fiat based online casinos and online casinos that use cryptocurrency. BitDice allows users to deposit Bitcoin, Litecoin, Ether or Dogecoin and play with it on their casino platform. Currently, you can play a dice game, blackjack and over 40 other slot games provided by Endorphina(7) — an online casino slot game software provider. There are over 20,000 unique users of the BitDice platform and more than 230,000 bitcoins have been wagered since inception(4).

BitDice Company Performance
BitDice has grown well over the past few years (2015 — Q2 2017). Cumulative wagered bets in BTC alone have grown 45% year-over-year on average, while the total number of bets has grown by 144% year-over-year on average. BitDice profit has grown steadily as well, averaging 104% growth year-over-year, and exploding in 2017 by growing 168% and 93% year-over-year in Q1 and Q2 respectively. BitDice’s bankroll investments (amount in total user bankrolls) has grown 84% year-over-year on average and those bankroll investments have returned 50% on average(4).

Gaming
The ICO Alert team created an account and tried the BitDice blackjack and dice game. Both games were a lot of fun, even after losing a little bit of Bitcoin. Account setup required a standard username, email and password and was created instantly. The blackjack game UX/UI is put together pretty well, as it’s easy to discover things like notifications, account settings, deposit/withdraw interface and more. At the time, there were 31 total people online. There is a Bitcoin faucet that allows you to earn 0.0000025 bitcoin every 15 minutes and there was a jackpot of roughly 1.3 bitcoins at the time. There’s an option for “hot keys” to speed up the betting process by using a keyboard, but the sound button did not work at the time for some reason. There is an easily referenced “Provably Fair” hash and client seed to ensure the game on BitDice is provably fair (5). The only issues encountered were slow processing times (cards being delayed) or the blackjack “Deal” button not executing and requiring the user to reload the page. This could also be caused by Internet connection, etc. on the user end.

There are great loyalty incentives and a leveling system that BitDice uses to keep players coming back to their platform:

Leveling System: a system that rewards users for participating and wagering more. Level 1, “Spectator,” must wager a total of 0.1 bitcoin. Level 5, “Satoshis Pimp,” is the highest level and must wager a total of 20,000 bitcoins.

Loss Back: credits users’ bankroll with a percentage of their loss that increases based on the level of the user. (Level 1 receives .007% back)

Bet Back: credits users’ bankroll with a percentage of their bets made that increases based on the level of the user. (Level 1 receives .003% back)

Daily Chest: a daily chance to win an amount of BitDice tokens.

Jackpot: a progressive jackpot system where 1% of the House Edge is added to the jackpot pool and increases with every bet. The jackpot is won if you hit 77.7777 in the Dice game, but bets must be larger than .0001 bitcoin.

Technical Specifications(3)

While BitDice is an online cryptocurrency casino using Bitcoin, Ether, Litecoin and Dogecoin, they do not operate their casino on the blockchain due to these constraints, as stated by the team:

  1. Low speed and limited bandwidth capacity (latency between user action and subsequent result). Smart contract bets only allow 2 bets per second per user, while BitDice can currently process 20 bets per second per user.
  2. Lack of flexibility in game variations and logic. Some games are very dynamic in nature, where latency is simply not allowed.
  3. High cost of smart contract execution. For micro bets, the scenario occurs where the fees exceed wager amounts, making some games unfeasible.
  4. Inability to pay out rewards, incentives, and other bonuses to loyal players.
  5. Insufficient control over players to detect fraudulent actions related to bonuses and affiliate payouts.

6. Complications connected with seamlessness to play games.

7. Inability to attract clients who prefer betting with fiat currencies.

8. Complications related to integration of complex-logic games to the platform aimed at maximizing wagered amounts.

9. Technically impossible to verify players’ domiciles to comply with certain regulations.

10. Dependency on unknown 3rd party Oracle providers.

With that being said, BitDice makes it clear they plan investing time and resources into running their platform on a blockchain at some point in the future. They’re particularly interested in Ethereum and IOTA at the moment.

Although ICO Alert did not have the security of BitDice audited, BitDice does provide explanation in their prospectus and appear to be detailed in securing their platform. The website is the only public access point and acts as a proxy. The site communicates via strict guidelines with a web server. While this web server communicates with other servers, those other servers are never exposed by communicating with the website. The backend engine is also split across multiple micro-services that each run with different access privileges, which helps prevent malicious actors accessing sensitive data.

The most critical part of the code is written in Elixir, but the prevailing code is written in Ruby. It is BitDice’s goal to eliminate the Ruby portion of the code and fully move into Elixir by Q1 2018. This should help many functional components of the platform as well, like reducing any downtick in speed and allowing for several thousand online clients at once.

BitDice is proud to have fought off hundreds of DDoS attacks and have never undergone any security breach or leakage. Users can enable 2-Factor Authentication, email confirmation, IP whitelists and more to help ensure their funds are safe from bad actors.

ICO Goal & Further Detail

The overarching goal of the ICO for the BitDice team is to expand into the fiat online casino industry. Their belief is that while they’ve been successful in the cryptocurrency community, they will need funds to market and expand their business to the larger fiat online casino community. The online gambling industry is valued at $46 billion and cryptocurrency online gambling accounts for only 5% of that total. The team plans to use the crowdsale funds to expand into this larger part of the overall industry.

Depending on how much capital is raised during the ICO, a large portion of funds from the crowdsale will go towards licensing and compliance requirements needed to host an online casino that uses fiat currency. The integration of more games with a higher margin for BitDice will also be integrated, depending on the amount of capital raised during ICO. The BitDice team believes that if they can succeed in expanding business to the larger fiat online casino community they will see growth that will “very likely” allow for 109% to 256% token dividend yield. Meaning that if the ICO raised the minimum $10,000,000 (token price $0.10), the team believes the token dividend (70% of total profit, distributed quarterly) would fall somewhere between $0.109 and $0.256.(3)(6)

Roadmap and Summary(3)

Present Day: 2,300 bitcoins in profit; 20,000 users; 230,000 bitcoins wagered

Q4 2017: New Slot Provider (20+ added games); Live games; Start of Smart Contract R&D (Ethereum/IOTA); Add CSNO token on website

Q1 2018: BitDice’s own games, including Roulette and “BitAces”; Mobile app; Raffles on website using CSNO tokens; Licensing R&D for fiat industry expansion

Q2 2018: Sports Betting; Add BitDice’s game Baccarat

Q3 2018: BitDice’s own games including Video Poker, Plinko, and Slots

Q4 2018: Poker

BitDice appears to be a major player in the cryptocurrency online casino industry. The amount of funds received during the ICO will likely determine how quickly BitDice can expand, but as long as growth continues like it has, there is no reason to think the project won’t be successful on a slower timeline. BitDice has a product that has been used for many years, and growth has outpaced competitors in a shorter amount of time since inception. The biggest risk to BitDice seems to be outside competition from a large player in the fiat online casino industry stealing market cap in the cryptocurrency online casino industry. If BitDice can succeed in becoming a real player in the fiat online casino industry and achieve their roadmap goals, it is likely that the project and ICO will be considered a success.

View the BitDice website: https://www.bitdice.me/

View the only comprehensive list of active and upcoming ICOs: https://www.icoalert.com/


Disclaimer: This report is intended to provide market intelligence. This is not investment advice and does not constitute any solicitation or endorsement of any investment. Any investment you make is done at your own risk and at your full and absolute discretion. The contents of this report are the property of ICO Alert. All rights reserved.

References:
(1) BitDice Website, BitDice, (2016) https://ico.bitdice.me/

(2) Dicesites Website, Dicesites, (2017) https://dicesites.com/

(3) BitDice ICO Prospectus, BitDice, (2017) https://ico.bitdice.me/prospectus_en.pdf

(4)Blocktrail Website, Blocktrail, (2017) https://www.blocktrail.com/BTC/address/146syqE3vnfQp4VauBRUnUuAgvxMoitxcK https://www.blocktrail.com/BTC/address/1P8yKwe4LMRfy1kCBgC97w6Z3D3cNLYbx

(5) Dicesites Verifier, Dicesites, (2017) https://dicesites.com/bitdiceme/verifier

(6) The dividend estimation is provided by the BitDice team, not by ICO Alert and should not be considered financial advice

(7) Endorphina Website, Endorphina, (2017) https://endorphina.com/

Topics: Blockchain, Gambling, Casino, Ethereum, ICO