Gambling dapps would be the perfect example of the old saying:
“When something sounds too good to be true, it usually is.”
More people would do well to remember these words as low risk high reward forms of investment recently became among the most popular gambling dapps running on the Ethereum blockchain.
Many technologists are already warning people about the risks of gambling dapps. The user counts and transactions on these dapps are already very high and there’s alarm bells ringing on potential exploits.
The developers behind the FOMO 3D gambling dapp, warned users that a potential rip-off of their creation was consuming more than 30% of the network’s computational power. By getting access to such a large percentage, the rip-off managed to collect a little over $7 million worth of Ethereum for less than 7 days.
Gambling dapps and their rip-offs need to be kept in check
The Chinese LastWinner app has raised concerns from many users and analysts. Many users have reported that the game has unbelievable amounts of bots which carry out transactions with the game’s own Ethereum. Simply put, the bots make the game appear as highly active and aim to lure new users with the promises of unreasonably big cash outs.
User activity on Etherscan saw users express their concerns about the obvious spikes in activity. The rip-off app had surpassed the apps it was designed to impersonate. Many data providers quickly managed to identify the spike as an anomaly.
This will further increase suspicion and uncertainly for gambling dapps. Many people quickly jumped to conclusions and blamed the original FOMO 3D dapp. The risk is further increased since the codes for both games aren’t disclosed or verified as of yet.
It is however, very premature to label something a scam and outright denounce it. Ever since their conception, cryptocurrencies have been called anything ranging from a Ponzi scheme to an outright rip-off and money laundering machine.
Ethereum creates the closest thing to a free market and most people will make money out of something if they can. Safety concerns have never been much of a barrier for inexperienced users when very quick and very massive profit was concerned.
When it comes to decentralization most people who understand the concept, generally are in massive favor of the benefits it provides. However, when something starts going the opposite direction, they are quick to call for censorship and that’s just not how it works.
In the end users are the ones who engage in these gambles and while the Ethereum platform provides the ground for such actions, it doesn’t encourage a single user to make use of them.
You can also check out:
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- Talent Growth System by Coinbase is Already Practiced by Global Giants - Dec 19, 2019
- Double-Spending: Potential Risks and Integrated Solutions - Dec 18, 2019
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