Some of the cryptocurrencies from this sector are doing great and enjoy the attention from investors recognizing the potential and appeal of contemporary online adult entertainment. There is also a connection between online casinos and trading speculative financial assets like crypto. Some say that using a trading bot on coins with high volatility is also close to a game of chance, which is, to some degree, true.
The similarity between crypto investments in obscure coins and crypto casino games is coincidental yet inevitable. The economic uncertainty makes every decision related to tokens that are not recognized as too big to fall quite risky. Knowing which investment routes to take is crucial for a contemporary retail investor. For the gamblefi crypto sector it is doubly so. We decided to put together a list of the best crypto for gambling enthusiasts.
What is GambleFi?
During the crypto winter, when many retail investors felt desperate and hopeless, the idea of gambling away some of their depreciating assets seemed appealing. The merge of gambling and crypto had started way before that in the late 2010s, but started turning heads in the 2020s.
This entertainment industry is a fusion of barely legal practices employed by some adult entertainment websites and decentralized finance that allows anyone to access virtual halls and stay anonymous. The implementation of smart contracts makes everything transparent yet maintains a very high level of security and privacy. In some cases, the underlying blockchain infrastructure is used to deploy Dapps that improve random number generation and offers new kinds of betting opportunities.
Top benefits of GambleFi tokens
The variety of GambleFi projects in the industry is relatively low since the range of practical application is limited. These platforms either offer access to traditional tabletop games or offer development tools to teams that want to deploy applications strongly focused on providing excellent user experience in the betting industry. However, the interest from the crypto community is apparent.
Below are some advantages that make GambleFi coins an interesting investment prospect:
- Transparent and fair. Many of these entertainment companies make a huge emphasis on the heavy utilization of the blockchain technology by recording all outcomes of your activities on a public ledger. Since smart contracts used to power adult entertainment applications can be scrutinized by anyone, they appear fair and reliable.
- Enhanced security. The proponents of the ndustry claim that decentralization makes the digital infrastructure robust against hacks and fraudulent activity while offering players a way to relax without exposing personal information.
- Cheaper service. In theory, the elimination of middlemen reduces costs associated with online games of chance. To a certain degree, it is true but transaction fees should be accounted for. Many of the digital assets in the category are layer 2 and layer 3 solutions that take advantage of rollups to reduce costs.
- Accessible globally. Some of these platforms do not follow know-your-customer policies and operate from poorly regulated areas to ensure that everyone with a functioning internet connection can gamble without any issues. By avoiding traditional banks and payment systems, crypto casinos serve millions of international players.
Risks of investing
When it comes to investing in these digital assets, doing your due diligence is hugely important. The industry is in the grey zone legally and investors must be aware of various risks associated with buying and holding GambleFi coins.
Here are of the risks recognized by experts:
- The uncertain future of the juridical framework. Many internet adult entertainment establishments that operate within traditional financial ecosystems are subjected to scrutiny and we still do not have universally accepted rules and regulations with each nation using unique approaches. Nevertheless, international law exists. Some of the companies may not fit in the existing juridical framework and fail to comply with widely accepted international legal practices.
- Technological risks. While privacy and safety are on a high level in DeFi environments, it is possible to design smart contracts that have exploitable inherent flaws. Such issues can lead to massive losses of funds.
- The lack of user protection. Clients who feel wronged often do not have any ways to legally dispute any issue since many of the companies in the larger sector often do not adhere to juridical guidelines. It is hard to expect every single gambling establishment to strictly follow some imaginary code of conduct. If you’ve been wronged, the arsenal of instruments for legal recourse would be limited.
- Volatile crypto prices. Gamblers may find themselves in situations where their winnings are quickly nullified by unexpected price crashes which happen regularly in highly speculative cryptocurrency market. While this particular issue is a type of risk that must be accounted for by players, it is not intuitive enough for laymen to seriously consider every time they use these services.
The future outlook of the industry appears bright. The market size of blockchain was over $66 billion in 2022 with industry projections suggesting a 12% CAGR until 2028. Interestingly enough, the popularity of crypto gambling is incredibly high with over 40% of users having engaged in it at least once.
How does GambleFi work?
The core difference between traditional adult entertainment websites and the ones deployed on the blockchain is the immutability of data and publicly recorded outcomes of all sessions ensuring transparency and fairness. Decentralization allows these establishments to operate in an environment that makes users feel appreciated and respected.
It is easy to find a brand that issue its own utility tokens that are used to make bets and participate in various events. The separation from the larger economic environment makes ecosystems more stable yet makes them vulnerable to liquidity and volatility risks. There are downsides and advantages to using this approach in adult entertainment.
In general, users do not feel any difference between traditional and crypto casinos aside from the currency they are using to play. On the other hand, potential investors and retail traders should be aware of the inner workings of projects they are interested in since the mechanics and infrastructures may be very different.
The best crypto for online gambling
The blockchain gambling sector is not as prominent and diverse as DePIN and DeSCI which have much wider spectrums of practical application. Finding a good target for investment is not challenging since many projects perform similarly. Differences in market cap and prices may seem dramatic, but overall trends are shared across the industry.
The similarity should not infuse you with the false sense of security. You should still recognize risks associated with investing in tokens that are deployed on less prominent blockchain networks like Solana and Cardano. These projects will naturally a higher level of risk yet their potential for growth is notably higher compared to those deployed on popular networks like Bitcoin and Ethereum.
Let’s talk about top GambleFi tokens that you should keep an eye on in 2024. We picked the entries in our list based on several criteria:
- High security and privacy. Companies that offer full anonymity, transparency, and high level of security are prioritized.
- Advanced technology. We do not like traditional online establishment posing as blockchain-adjacent services. Our picks use blockchain to improve random number generation and make the experience fair.
- Token performance. Of course, our readers are interested in prices and the market performance of crypto tokens associated with companies in question.
Rollbit
This platform has the first-mover advantage as it was among the first real betting experience offering a wide range of popular traditional games like slots, blackjack, roulette, and even sports booking. The Rollbit token is RLB. It reached its peak in November 2023. Right now, it is trading at $0.06 with a respectable $170 million market cap indicating a healthy level of interest from the crypto community.
Here are some of the reasons people believe in Rollbit:
- A diverse selection of games. The catalog is full of traditional tabeltop games that you can find in every online adult entertainment establishment. Slots, roulette, blackjack, and other types of entertainments are available to all visitors.
- The native token’s performance. As mentioned previously, the token maintains good metrics and reaches about $3 million daily trading volume on Uniswap showing that players are quite active and engage with the platform regularly ensuring future growth and improvement.
- NFT deposits and loans. Users of the platform can receive a credit line against their assets to continue playing. You can use NFTs as collateral and enjoy an uninterrupted gaming experience with a sufficiently large portfolio of digital assets.
Rollbit delivers an excellent experience to players, but investors should be careful when trading RLB. The token is traded mostly on decentralized exchanges making it susceptible to liquidity shortages and volatility.
WINR Protocol
GambleFi price fluctuations are quite troublesome for many players and retail investors. WINR Protocol hopes to address this issue by using an infrastructure that ensures the quality and reliability of on-chain gaming to provide a stable and fair environment for everyone. The enhanced transparency and security as well as provable fairness make the WINR token less volatile compared to other similar financial instruments.
Here are some of the advantages of this platform:
- Autonomous liquidity procurement and incentives for players. WINR is known for its flexible digital infrastructure allowing developers to easily integrate gamifying elements in their projects and deploy them without the need to address issues related to liquidity.
- Fair RNG. The main selling point of the sector is its transparency and fair technology ensuring that outcomes are recorded on a ledger. Smart contracts add another level of anti-fraud and anti-cheat capabilities.
As a source of developer-friendly tools, WINR token does not have the same weight and presence in the crypto market. It has a relatively small $14 million market cap but can be traded on a wide variety of DEX platforms. As a freshman of the industry, WINR has a potential for explosive growth.
BCB
Deployed on the Ethereum blockchain network, BCB is an already established household name with a focus on traditional offerings from websites with games of chance. Users of the platform can engage in sports betting and play a variety of games like blackjack and roulette. These features are offered in a decentralized environment guaranteeing fair gaming and an easy access to games.
Below are the advantages of this GambleFi crypto project:
- Fully decentralized. The platform does not have any centralized management. The architecture is designed to be secure and transparent with all outcomes recorded on an immutable digital ledger which is something that traditional adult entertainment websites do not offer.
- A massive sports booking section. While many other similar companies focus strongly on a variety of games and introducing new ways of betting, BCB is focused on offering sports betting in a variety of disciplines including soccer, hockey, basketball, football, and more.
The native token BCB is regularly traded in relatively small volumes due to its utility within the BCB ecosystem where the coin is used to make bets, earn bonuses, and purchasing rewards from the platform. With a solid $7 million market cap, Blockchain Bets is a great choice for contemporary crypto investors interested in promising products.
One of the downsides of the token as an investment target is the current downward trajectory and low daily trading volumes.
Which GambleFi coin to buy
Picking the right gambling coins to invest in is relatively easy. You should consider several factors when determining the potential of tokens in the long run or for speculative trading:
- Daily trading volumes. The vast majority of assets in this industry have utility usually useful only within their respectable ecosystems. They are usually not traded on centralized exchanges. Daily trading volumes serve as a reliable indicator of the token’s popularity outside its native environment. If something is only available on a couple of DEX websites with low volumes, it is not a good fit for speculative trading.
- The product behind the token. The WINR protocol is a good example of a token with a great potential tightly connected to the overall trajectory of the sector. If the industry takes off massively in the next decade, so will WINR as it offers technologies incredibly useful to developers of decentralized gambling solutions.
- The popularity of a company. If you are interested in a financial instrument offered by a specific project, it is a good idea to visit online communities dedicated to cryptocurrencies and see if there are any discussions about the token. If no one talks about it, chances are the token will never reach the necessary momentum to bring high returns.
- Availability of the token. Retail traders should be working with coins that have high liquidity and can be traded on a wide range of centralized exchanges. If you cannot sell your tokens due to liquidity shortages on a single DEX platform they are listed, high GambleFi price numbers will feel useless.
Doing your due diligence and researching target investments before putting capital in them is a great practice. In some cases, checking out the product personally can be a valuable experience that provides insights into the consumer-facing aspects of the platform. If you did not enjoy your time partaking in adult entertainment, others will likely also feel disappointed and quickly abandon seemingly promising internet establishments.
How to play GambleFi games responsibly
Many platforms deployed on popular networks make accessing their games as convenient as possible. For example, you may use your Metamask wallet to quickly log in on many Ethereum-based online casinos. The connection is near-instant and allows you to start playing after exchanging your cryptocurrency for native utility tokens.
There are virtually no differences between a typical adult entertainment website with betting and the one using blockchain technologies. Consumers of the product will never see how inside mechanisms operate and most won’t be impressed by the public ledger containing results of their games for potential inspections. In other words, there is no learning curve. Just go to a crypto casino and play to earn crypto!
Should you invest in GambleFi tokens in 2024?
The biggest hurdle to clear is liquidity. Many financial instruments issued by these companies are traded on DEX platforms (in most scenarios) and often encounter issues with transaction delays due to low liquidity. These problems do not appear regularly, but are frequent enough to warrant the discussion. The absence of these tokens on centralized exchanges means that advanced trading tools like an AI crypto bot or a GRID system will not work.
If you truly believe in a company and want to support it, by all means buy its tokens and hold them or provide liquidity on decentralized exchanges. However, as investment targets, these financial instruments do not work as well as digital assets issued by other forms of decentralized ecosystems.