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beware scammerExit scam

The most simple and common crypto dice investment scam is for the operator to shut down the site and take all investors’ and players’ balances.

This can happen on any site that holds customer balances but the presents of the house bank make it more profitable, and therefore more common, on crypto dice sites. The incentives are perverse because stealing a large house bank gives the operator more money in 1 day than they would make running the site honestly for a number of years.

I invested 1000 m฿ in 9 dice sites for the purpose of tracking and comparing the returns. In the first 6 months 3 of the sites, that is 33%, are exit scams. My 3000 m฿ are gone forever and statists calling for licensing and regulations in the name of consumer protection have 3 more examples to point to.

Underpaying investors

Investors receive a % of the site’s profit, therefore all an operator has to do to underpay investors is under-report site profit. Then they can keep the difference for themselves. There are a number of sneaky and dishonest ways site operators can do this undetectably.

A site could exclude some profitable bets from the site profit figure. A site operator could make a player account and use knowledge of the secret seed that determines bet results, to win with that account. This would result in a loss to the house bank which would only be a loss for the investors but a win for the site operator.

These scams could be done continuously on an ongoing basis. If the operator did this to make a site that would have a 1% profit have a 0.8% profit, people would just assume the site has been slightly unlucky.

Scam prevention

The only way to ensure you will not be the victim of a crypto dice investment scam is to not invest in crypto dice sites. That is my advice for now as the ecosystem is mostly comprised of scammers, amateurs and the B team.

The best crypto gambling sites are not so desperate for liquidity that they would give 90% of their site’s profit to investors. They can just run high-quality gambling services without house bank investment and keep 100% of the profit.

There must be a way to make a crypto dice site trustless with multisig transactions, smart contracts, open source code, et cetera, but no one has done it yet. When someone does I will certainly consider investing as I do love how the model gives anyone the chance to be the house.

If you can’t resist choose where to invest carefully and spread your investments out over a number of the more trustworthy sites. Look for sites that have operated the longest and have the best reputation online. See how they performed on our investment comparison table.

Our list of dice reviews:

18+ only. Gambling can be addictive, please play responsibly.
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Eugene Abungana photo

I have worked with several companies in the past including Economy Watch, and Milkroad. Writing for BitEdge is highly satisfying as I get an opportunity to share my knowledge with a broad community of gamblers.

Expert On: Crypto Gambling Blockchain
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