BMJ Score: 3.6
Quick Summary24 Investors read this
CommentaryThe betting industry is a $60 billion sector that is consistently growing, and BX.BET promises to revolutionize this space by providing users with an entirely new betting experience. The market lacks transparency and trust, and we like that BX.BET enables global users to take up roles that have previously been handled by bookmakers and ultimately will lower fees, create fair odds, and eliminate the middleman. While the market is promising, there is a lot of competition here. BX.BET outlines its competitive landscape in its whitepaper, and the project seems to have a lead in terms of a market liquidity strategy and betting exchange. However, their go live date is behind schedule. The team is solid and has extensive relevant experience in the industry. Additionally, they have an advisor in charge of developing strategic partnerships, but there are no partnerships listed on their website. This is concerning. While we like that this is built on the ETH platform with a utility token that has a direct use case to access the platform, the MVP is not scheduled to go live until Q3 of 2019. This is a fast market space, and we worry that BX.BET’s late release date might hurt its ability to capture market share. If BX.BET is able to bring its whitepaper to fruition, we see a valid place for it in the market.
- How to invest: To participate in the pre-sale, register at the following link.
- Discount: 15% $300 USD - $2,000 USD; 20% $2,000 USD - $15,000 USD; 30% Above $15,000 USD
- Eligibility: Residents and citizens of Algeria, Bangladesh, Bolivia, Democratic People’s Republic of Korea, Ecuador, Ethiopia, Indonesia, Iran, Iraq, Jordan, Kyrgyzstan, Morocco, Nepal, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, USA, Vanuatu, Yemen are excluded from participation.
- Token Price: 1 BX = 0.19 USD
- Jurisdiction: Malta
- Minimum Payment Amount Pre-Sale: $300 USD
- Currencies Accepted: ETH, FIAT, BTC
- Problem addressed/solved: The betting industry has experienced decreasing levels of trust and a lowered reputation in recent years. The traditional online bookmaker faces many problems including a lack of trust, transparency, and intense regulation, all of which stem from their centralized structures. Companies are in charge of the outcomes, odds, and even player funds, a situation which leads to a lack of transparency and trust for the end user. BX.BET allows users to place bets using the token, and smart contracts give users full control over their funds.
- Target customers/customer/ segments/verticals: At first glance, you might think that BX.BET wants to specifically target sports betters, but this is far from the truth. Their platform allows for anyone to create their own marketplace and become the bookmaker, meaning that you can create and place bets on sports, financials, predictions, or nearly anything your heart desires.
- Value creation: The BX.BET project’s most valuable attribute is its removal of the middleman. The need for bookmakers is long gone as BX.BET replaces them with a peer-peer exchange system where everything is tracked on the blockchain and handled by the use of smart contracts. BX provides its users the unlimited freedom of creating their own markets, acting as a bookmaker, accepting bets, or offering their own odds at any time. There are no restrictions on the type and amount of bets, as the community decides whether a bet or a market gets accepted.
- Competition: Gambling has become a popular industry for blockchain startups as it is clearly fragmented and lacks transparency. Other projects like Trueplay have got the time advantage on BX.BET, and more are soon to follow. Heavy contenders here would be for Decent.bet (though it is not fully decentralized), Bethereum, Wegerr, Augur, and Hero. However, BX is the only one to have a market liquidity strategy and a social betting exchange. BX.BET will rely heavily on its stacked team and its focus on allowing all types of betting to be the differentiators when it comes to ousting the competition. For further information on their competitive analysis, see page 48 of their white paper.
- Market size/potential: Since 2009, the online gambling market has doubled in size, and it currently has a volume of nearly $60 billion. The recent Supreme Court ruling on sports betting gives BX.BET an additional market where they can essentially get in just as the doors open. Additionally, BX.BET will allow users to bet on financials and prediction markets.
- Regulatory risks: It will be hard to manage regulation because each kind of online game (poker, lottery, sports, etc.) has its own rules and regulations and the legislation is constantly changing. There are also the issue of ethics behind gaming and the fact that regulators have to ensure that rules protect players, prevent money laundering and underage players, as well as ensure social and taxation policies are met by licenses. While blockchain will help ensure some of these things are covered (money laundering and preventing underage players via smart contracts), taxation policies are something that will have to be monitored by the government, and this gets tricky for decentralized initiatives.
- Investor value: Investors will find value in their BX tokens as more users join the platform to place their bets on whatever they please. BX.BET plans to create a mere 200 million tokens, a supply lower than the average project, which might indicate faster growth in value as demand increases.
- Disclosures: BX.BET has done an excellent job structuring their website, whitepaper, and one pager with all the information that investors want to see in an organized manner. Their white paper has a whopping 69 pages of jam-packed content, and the one-pager gives a clear synopsis of the problem, solution, token structure, and special features. Having said that, the roadmap lacks detail and explanations as to how/why the team will take such actions. The mobile app will be released in Q2 of 2019 and the rollout will be in Q3 of 2019.
- Token distribution: 60% Token Sale, 10% Team, 10% Advisor, 5% Bounty, and 15% Company Reserve.
- Use of proceeds: 50% Development, 25% Marketing, 15% Operations, 5% Legal, and 5% Miscellaneous.
- Caps: Soft cap: $5 million USD; Hard cap: $20 million USD
- Track record: Gabriel Vollman (COO) has extensive management experience as the former COO of both Wetten.com and Frontloop Media. He, like many of his colleagues on the BX.BET team, has also worked in the iGaming industry as a manager. Christian Heins (CEO) worked with Vollman when he was CEO of Wetten and Frontloop Media. Mr. Heins boasts a technology background with the past 14 years being more entrepreneur-centered. The best aspect of the BX.BET team is their diverse backgrounds that have iGaming as the common theme among them. They have the industry experience and blockchain talent to elevate this project.
- Integrity: A few of the founding members of BX.BET have worked together in the past. They all share a passion for iGaming and online betting and intend to use that passion to solve the issues plaguing the online gambling industry.
- Christian Heins, Co-Founder and CEO (LinkedIn)
- Gabriel Vollmann, Co-Founder and COO (LinkedIn)
- Christian Lenz, Blockchain Expert (LinkedIn)
- Joschka Kupich, Co-Founder and Product Development (LinkedIn)
- MVP: BX.BET plans to release the alpha version of BX in Q4 of 2018. They’ve supposedly started their MVP development but have yet to post any UI screenshots or links to a trial version.
- Token use case: The BX token will be the enabler for all BX betting applications. It will be utilized as a store of value, which can be used to conduct all transactions inside the BX ecosystem. It will be used to place bets, create betting events, and claim rewards and prize money.
- Value-added: The BX token allows BX.BET to function as a transparent ecosystem on the blockchain. The BX token is the only token that will serve as a means of transaction on the platform, allowing for seamless payments and use across the platform.
- Decentralization: BX.BET is a fully decentralized system where all betting transactions run autonomously, securely, and transparently on the blockchain. The players remain in full control of their betting actions and funds at all times.
- Token Supply: Max supply of 200 million BX
- Technical difficulty/investment expertise needed: BX.BET does not require technical expertise in order to understand its concept and mission. In fact, they want to promote the user-friendliness of their product so that everyone who’s interested in gambling can do so safely, securely, and at a low rate. A helpful video describing their project can be found at the following link.
- Halo effect: BX.BET has partnered with WH Partners (a law firm in gaming and gambling) and What (a blockchain-based advisory firm).
- Buzz: BX.BET definitely needs to improve their marketing efforts to increase their overall traction online. They only have a combined 6,000 followers among their Telegram, Facebook, and Twitter accounts.