Recently, the GambleFi field has suddenly emerged, and Rollbit (RLB) has gained even more momentum. Today we will take a look at this project and why its popularity has continued to soar recently.

Rollbit platform and RLB token overview

Rollbit platform: the leading GambleFi platform with extensive coverage

Rollbit is a company founded in The comprehensive GambleFi platform launched in February 2020 provides diversified products such as casino, sports betting, futures trading, and NFT market. Rollbit's current market value exceeds $633M, and according to the official website, the platform currently has more than 1 million registered users.

The Rollbit platform was upgraded to V2 in March 2021, and has been upgraded in terms of rule design, user experience and other aspects. Currently, in terms of participation threshold, Rollbit takes into account both Web 2.0 players and Web 3.0 players, making it user-friendly. You can register an account through email, enter the platform through Steam and Twich accounts, and directly participate in platform activities by connecting to an encrypted wallet (currently only MetaMask is supported).

In terms of products, Rollbit, like most GambleFi platforms, adopts the "game lobby" approach. mode, offering different games in each zone. In addition to some common and traditional games, Rollbit also has many innovations.

The platform has set up many games in the Casino area to enhance the interactive experience between users, including Challenges that can be initiated by any user, and bonuses that users can interact and compete based on the balance in the prize pool. Bonus Battles; in the sports betting section, Rollbit supports players to bet on a wide range of sports events, including but not limited to NFL, NBA, Soccer, UFC, e-sports, etc.; in addition, another major feature of the platform is futures The trading section trades more than 20 top cryptocurrencies, with trading leverage up to 1,000 times.

RLB Token: 100% Airdrop

RLB is the utility token of the Rollbit platform, originally launched as part of the Rollbit Lottery product. Holders can obtain rewards through staking and participate in lottery draws and other activities.

RLB was issued without going through the normal ICO process. In other words, it did not conduct external financing when it was issued, there was no OTC transaction, and 100% of the tokens entered the market through free airdrops.

This issuance model attracted the first batch of "believers" for Rollbit. Why do you say this?

Let’s review a similar case: yearn.finance in the DeFi field. Its tokens immediately attracted market attention when they were issued, because the team did not raise any financing for the project, nor did they reserve any $YFI tokens, intending to make the platform truly belong to every user who owns the tokens. This is also known as the "Fair Launch" model. This made YFI not only praised as "the embodiment of the true decentralization spirit", but its currency price once surpassed Bitcoin and exceeded US$60,000.

Following this logic, compared to those projects in the same track where teams reserve some tokens, RLB’s token distribution, which is similar to Fair Launch, is undoubtedly more in line with the decentralization of the blockchain. The spirit is also easy to gain recognition from users.

Why is RLB so popular recently

Implementing a token repurchase and destruction plan

On August 9, the co-founder of Rollbit Lucky (@Lucky_Rollbit) stated through his Twitter that in order to further enhance the importance of RLB tokens to the entire project ecology, the platform will launch a "token repurchase and destruction plan."

According to the plan, the platform will withdraw a portion of the daily fee income to purchase RLB on the open market and send it to an address that is not controlled by any entity for the purpose of destruction. Funding for token purchases includes 10% of casino revenue, 20% of sports betting revenue, and 30% of thousand-fold futures revenue.

This plan will continuously reduce the circulation of RLB in the market, provide continuous buying pressure for the token, and thereby provide support for the increase in token prices. Moreover, since the repurchase funds are derived from the platform’s income, from this perspective, the more the platform’s income, the more funds are used to repurchase tokens every day, and the greater the amount of RLB destroyed every day. , the currency price has more momentum to rise - it sounds like a good story of mutual success between the platform and currency holders. The market was very moved after hearing this, so the RLB currency price soared by nearly 70% that day.

On August 10, another co-founder Razer (@Razer_Rollbit) further announced that RLB’s repurchase and destruction plan has entered the automated execution stage and will be executed every hour. This news slightly boosted the price of RLB currency, breaking through $0.20 in one fell swoop.

NFT holder sharing plan

On August 12, Rollbit struck while the iron was hot and released further good news: pledgers of the platform NFT (Rollbot) can buy back from the hourly RLB Receive 10% share from destruction.

Based on the real-time data on the Rollbit Dashboard, we can roughly estimate the benefits this plan can bring to Rollbot stakers.

As shown in the figure below, the RLB allocated to users from the buyback plan is currently around 5,000 pieces per hour. The unit price of RLB is almost $0.20, so the platform will distribute about $1,000 to users every hour. The total rebate in one day is almost 25k to 30k knives - which is definitely generous in the current sluggish market environment.

Migrating to the Ethereum network

This happened at the end of June. Although it took a long time, it obviously kicked off the strong trend after RLB.

RLB was initially deployed on the Solana blockchain. The collapse of FTX last year brought a series of negative impacts to Solana, and projects in its ecosystem were also affected. On June 28 this year, considering the development bottlenecks caused by the Solana blockchain, Rollbit migrated RLB to Ethereum.

What happened to Solana? Please refer to the research article: Solana Ratings Update - Solana Network or Solana Not-Work?

As a public chain giant in the encryption market, Ethereum’s active ecosystem has brought vitality and more attention to RLB. In the 10 days following the token migration announcement on the Rollbit platform, the price of RLB rose from $0.021 on June 28 to an all-time high of $0.0695, an increase of more than 230%.

In the announcement, the Rollbit team also stated that it will give users sufficient time to migrate their RLB to Ethereum, and user positions will not be affected in any way.

The GambleFi narrative in the bear market

Under the current lack of market liquidity, many users will choose to turn to meme coins or gambling projects in order to seek entertainment or profit realization. This may not only be because these areas have lower barriers to participation, but also because they generally have higher user activity and liquidity - which is very attractive to users who want to get in and out quickly.

For the memecoin field, please refer to the course: Memecoin Guide - How to Discover and Trade Memecoins

In addition, compared with traditional platforms, the combination of The GambleFi platform, which uses blockchain technology, has more attributes that attract players, such as fairness, transparency and decentralization. These qualities may appeal to users who value game rules or anonymity.

Doubts accompanying the popularity of Rollbit

Although many users in the market have been placing orders recently, the trend of RLB currency price has indeed not disappointed (so far) ), but with this wave of popularity, many people still raised doubts about Rollbit, and even revealed the "black history" of some projects.

Transparency concerns caused by suspicion of "invisible banker"

Currently, Rollbit is not fully operating on the chain. If we speculate with "the greatest malice", the betting, income, turnover and other data that users see on the front end of the platform may all be created from a black box.

On August 20, Twitter user thiccy (@thiccythot_) posted that there seemed to be invisible bookmakers among Rollbit’s large position holders.

According to thiccy’s observation, there are multiple addresses with large positions that are continuously selling RLB, with hundreds of thousands of pieces each time. Although some selling occurred before the token repurchase and destruction plan was implemented (that is, the moment when RLB took off significantly), this phased reduction of positions can also be regarded as normal arbitrage behavior, but it also triggered our thinking: in terms of transparency, The Rollbit team could certainly do better - without decentralization and transparency, what advantage does GambleFi have over traditional gaming venues? Anonymity exclusive to the bookmakers themselves?

The contract detection result of

For reference, the current platform in the encryption market that claims to be GambleFi on the entire chain includes but is not limited to @WINRProtocol, @Goal3_xyz, and @SankoGameCorp.

The dark history of joint KOL calling for orders to cut leeks

This "surprise" came from the discovery of user Alisko2000 in r/CryptoCurrency, the largest cryptocurrency community on Reddit.

This user claimed that he accidentally discovered some suspicious past about "RLB Shiller". For example, KOL @gainzy, who was once targeted by ZachXBT, who is known as the "blockchain detective", is suspected of selling RLB tokens while accepting sponsorship from Rollbit. The amount of the sale even exceeded US$3 million at ATH.

Of course, it is not the original sin to invite influential people to help the platform. After all, sometimes the smell of wine is afraid of the alley. Only when someone shouts will more audiences see the buried value. However, in the crypto market, it is not uncommon for KOLs to cooperate with project parties to cut leeks, and Rollbit, which has such a record, has many KOLs from all walks of life helping to sell orders during this wave of rise. This has to make people wonder: This is Is it coming to harvest again?

Can the rising flywheel keep spinning?

In Rollbit’s story, the platform now has a very attractive “rising flywheel”, that is, the platform makes money and distributes the points to users , user confidence increases, market buying pressure increases, the platform continues to make money, and continues to give commissions to users.

Let’s take a look at the token repurchase and destruction plan and the pledger sharing plan mentioned earlier. Generally speaking, this win-win situation between the platform and users is formed like this: the platform makes money and then gives some of it to users. And they are all based on the same foundation: the profitability of the Rollbit platform - to put it more directly, the money the platform earns from players participating in the game. I have to say that this model is somewhat "big". Generally speaking, "Ponzi" type stories are particularly attractive for a period of time, but become unsustainable over time.

Why is Rollbit said to be “big”? What is a "Ponzi scheme"? What characteristics does it have? Please refer to the entry: What is a Ponzi Scheme?

Back to Rollbit, both the platform and currency holders make money from players. Participants in the game will win or lose. Equal division is "steady happiness". So, as a GambleFi platform that does not have any more advantages than traditional online casinos in terms of business, how long can Rollbit attract players to "give away money" in its gaming venue? If it is impossible to maintain the stickiness of platform players and improve the ability to continuously acquire customers, this "flywheel" may inevitably slow down or even stagnate at some point in the future.