It seems rather obvious that the popular Initial Coins Offering is something that the gambling industry would cash in on. This may be linked to the fact that ICOs and investing in them can be classified as a gamble. In fact, in the past few months, there have been concerns among regulators about what they called the high-risk nature of ICOs.
Initial Coin Offering is a hybrid between the traditional Initial Public Offer and crowdfunding. What makes ICO peculiar is that it is based on digital currencies and its tokens have utility within the ecosystem of the company offering it. That it is high risk is attributable to the fact that the companies offering them for sale have nothing to back them with. These are companies that came up with ideas, which they feel is brilliant and needed to be funded, even though some of these ideas may never have been tried.
Analysts are saying that it is not surprising that the gambling industry has been the most prominent in leveraging on the ICO buzz to raise funds for different betting and gaming related projects. That blockchain, the underlying technology behind ICO has found appeal among gambling companies is apt because of the decentralized nature of blockchain as well as its anonymity. There have been concerns among gamblers about the integrity of the companies behind the stakes. How would they be certain that the rules are not changed after the game commences?
Blockchain is known as a decentralized distributed ledger that is not controlled by a central authority on the network. Therefore, data on the blockchain cannot be altered after being initiated. This scenario gives gamblers assurance that their winnings will be paid especially when such platforms are based on the smart contract. The same platform on which ICOs are based on.
Having an anonymous, yet reliable decentralized platform is what blockchain is all about. Gamblers who are concerned about privacy will no doubt be thrilled with the prospect of an anonymous network on which they could stake without necessarily divulging personal data such as credit cards.
According to Credit Suisse, the gaming and gambling industry was the dominantly funded through ICOs by August 2017. There even was an ICO meant to raise $500 million for a floating casino in Macau. Aside gaming and gambling, other industries that have been prominent in ICOs are Infrastructure and Development, Media/ Advertising and Asset Management. The gaming and gambling industry no doubt saw the potentials and took advantage of it by making their stakes on ICOs.