I will like to start with a small disclaimer: From now and further, I will only consider the possibility of investing only in those projects that I like both technically and ideologically, and of course meet my prospects. Therefore, I have no short-term speculative interest, not without any exception but most likely. You can follow my diary of an investor in the crypto and ICO world on my Telegram Channel Cryptos Kreps.
History of the online poker rooms related to crypto-currencies
In this topic, among some lot others, I'm naturally a very capable person, just for being a person who has devoted to poker gaming and business more than 10 years.
The idea of an online poker room working with crypto-currencies is not new, and even has already been tested; and, even with the current crypto-boom, it is not bringing stars from the sky to the creators, although it's showing some growth. But let's start with a little of history.
The first online poker room available to play only with a crypto currency was Seals With Clubs. It was opened about 5 years ago and in that time, it was almost the only online poker room available for American players (there was no applications like PokerMaster, BlackChipPoker, Bovada, etc.)
At that time, the room showed a good number of poker players, up to 400 active connections playing limits from NL100 to NL400. The Bitcoin value was significantly lower compared to today, and the games were played by joy, as there was no promise of huge dividends like an asset.
With the time, Americans began to accept other poker room, and of course, the room was built on a cheap browser software, no marketing at all, etc. At the moment, there are only 50 guys online and a rare game in micro-limits. It is a corpse with one foot.
After that, Betcoin reached the market, accepting and conducting games only in Bitcoin. Long story short, Betcoin Poker announced the closure of its poker room just a week ago due to low interest and some legal problems. This is a very important point to understand the relevance of a crypto-room (not to be confused with a room where the rates are implemented based on a smart contract).
Today, the only working cryptopoker project is Nitrogen Sports. About 100 players and sometimes very expensive games are played, and a good number of tables are player at medium limits. This room is a good choice for Heads Up players. The poker room is reliable and is well known primarily as a bookmaker.
Now, let's go back to CoinPoker, and of course we will start reading the Whitepaper. Here is a link to it: https://coinpoker.com/downloads/coinpoker-whitepaper.pdf?v18010903
After the traditional phrases of an introduction, I get to this "Millions have already been invested to get the software to this state" - and this is what is alarming. I installed the software myself, and I advise you to do it, and it's really not so bad, but for sure "millions in its development" could not be technically spent; I have a good idea about the cost of developing such platforms and it is below a million. Marketing lies. We put a minus there.
I quote here: "The timing is perfect for CoinPoker as recent forecasts expect online poker to surge in popularity with previously taboo markets coming back online (such as parts of the U.S) and poker growing in popularity in emerging regions such as Asia and South America. Expenditure is set to treble of the next 3 years."
Also here, not true. The poker market is actually showing some regression, although in some market there is a significant grow, for example, Asia.
Further on, the analysis of the problems of the poker market is taking place in the White Paper, and will be good that people that write about it be familiar with the industry. I read the document to the end and for you in a very concise form I will describe what I consider advantages and disadvantages of CoinPoker.
Advantages of CoinPoker
- On ordinary rooms, the player does not own his bankroll until it is on his personal Bitcoin ewallet. About this, history knows a lot of examples of non-payment of money and other frauds. A room built on a smart contract allows you to write down the required number of chips from your personal account at each bet, and in case you win, it instantly transfers the bankroll to your account. That is really cool.
- Commissions that ewallet's take from poker rooms for a deposit through their platforms. Skrill, for example, takes up to 8% from the room from the player's deposit. This is why the poker rooms request to their players to win back at least the amount spent by them for payment processing services. Here, this problem is removed, so the obligations for wagering rake will be either minimal or absent.
- The problem of attracting recreational players to the room. Here, too, there is a share of optimism associated with the fact that the room will advertise itself among the project investors, as well as exchange speculators as second hand. That is, the influx of new blood into the ecosystem can occur due to an audience so far in poker that does not play regularly but is also interested in the crypto market. Time will tell if this happens. I am positive about this. At the moment, having only 377 players, I looked around the game, and it was like an organic one. Freerolls are actively played, and according to our reviews, their local CHP token is actively being won there.
- There is a waiting list and a cap per costumer, up to 1,000, that is, in order to take part in the ICO, you must first reserve the necessary coin quota to include your address. This is the healthiest model of sale, since in case of a speculative sale (not the CoinPoker case to be honest) gives the possibility to enter into the project not just to one large player who distributes the tokens among lots of people (pros for marketing and for "decentralization").
- Open source model of the random number generator (under development)
- 4% of rake with following caps (column in the right, in the left is compared to room where there is no rake cap)
- The intention to target an audience from China, where the poker boom is now undergoing.
- Active work with the community, the existence of a live, although not super-large group in Telegram https://t.me/officialcoinpoker.
- The MVP (Minimum Viable Product) - the poker room is already working and there are a lot of games and a decent software. Clearly money has been invested, although not millions. MVP is a prototype of the product and it is good for them.
- Articles on PokerNews and HighStakesDB are a big plus
- The lack of rakeback. Instead, there is a promise to invest 25% of the profit collected from smart contracts on rake races, tournaments and other promotions.
- During the PreICO, the tokens were sold for 6 days for a total of €4million, which is in general, good.
- Transparent system for poker affiliates, also promised on the smart contract, allowing to monitor in real time the profit from the players.
Disadvantages of CoinPoker
- Project support by Antanas Guoga, known as Tony G (doubtful whether this is a plus or not, he is a public person and now is engaged into politics, but in the past it was a well-known scammer associated with some poker rooms including his own room) and a couple of little-known "ludomans" from the Aria casino. The lack of trusted names of the poker world as a part of the creators.
- Currently, it is not clear the behavior of the coin owners after getting it to the listing exchanges. Possible draining a significant part, and as a result traffic will reduce and games can die.
- The Asian guys playing big at their applications like PokerMaster, PokerLords, PPPoker maybe are not going to be interested in CoinPoker. Currently some effective strategies are not public, despite the obviously correct targeting.
- Some populist actions like Get a Tesla and other overly generous promises.
Assessment and conclusions
Idea: 3/5 - attracting amateur poker traffic at the expense of traders and crypto-enthusiasts, it is unclear whether they will stay there. Now the majority of ICO participants are waiting for the coins to get it to the stock exchanges and boost x2.
Competition in the niche: 2/5 (there are two more parallel projects on the same topic)
Team: 3/5 - many of the team members have Linkedin profiles, where CoinPoker is specified as workplace.
HYIP (numbers of mentions, discussions, references) 4/5 - 400 online connections, 1200 chat participants, 383 thousand visits to the site per month (this is very cool) and 111 thousand mentions on the internet (this is also good).
Work with the audience (Telegram chat, forum, etc.) 4/5 - very active brand in social networks, communities, communications.
Bounty program - Yes
ICO Model - WhitePaper with a cap. This is good, all right, although the CAP is too high.
Final rating: 3/5
To invest or not?
I will probably make a very small investment, as an affiliate, on which the success of the platform depends on some extent on strong software effort, getting into close markets and the obvious advantages of smart contracts for payments and games. Besides that, I'm curious to follow the project, as a beginner analyst.
I'm taking a long time. Then I will look with interest the room and the players and the situation after the coin is released to the stock exchange. Well, I'll write down and stream about the games in this poker room.
It is your decision to participate in the crowd scale CoinPoker.
If my thoughts on the ICO projects are interesting, welcome to my diary: https://t.me/cryptoskreps
If, in your opinion, there is something to add to this review, or something is missing from my sight, please tell me about it:
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Rodion Longa, leader of Worldpokerdeals.com