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It is often stated that most crypto startups are guilty of creating “blockchain in search of a problem”.
Perhaps a section that defines the stereotype is Crypto Casino. Financial Times makes this niche market dreadful Roughly speaking $ 81 billion in 2024.
Consider the reshuffle.
Fisher 8 Capital co-established incubation and co-installed by former Almeda merchant Noah Dumate, Shafal is a casino and lottery platform, which claims at least $ 100 million in the annual “net gaming revenue”-which means VIP discount and all revenue after cashback.
The current FDV of SHFL tokens is a cheap 2.3x multiple current of $ 232 million, while most other top defi tokens compared to the range of 10–40x revenue qualities.
They will reshuffle the list of revenue number top 20 revenue-generating web 3 businesses, yet the project is largely absent from the so-called “so-called”.Revenue meta“Crypto talks on Twitter.
Architectural
Often, despite being referred to as a “crypto casino”, Shafal executes the most part of its gameplay mechanics – roughly due to the fact that posting every condition on a public chain will also include L2 network rapidly.
Additionally, most of the gambling games of Shafal are outsourced with tigaming content studios such as evolution, hacksaw gaming, practical plays, etc., so when the shuffle provides fronts and bankrool to the players, the Igaming Studio produces the results on the backynd.
This separation limits the risk of tampering of the shafal, but it also means that revenue cannot be verified.
Nevertheless in a highly commoditized sector like gambling, it can be a conscious decision, where disclosing betting volumes will highlight the strategic information about the casino’s balance sheet, the runway, and its ability to place big bets to the contestants.
How do blockchains come
Traditional casino business cards rely on network and bank wires that usually consider gambling as high -risk “sin” verticals. This means that players face various types of friction such as extremely high fees, frequent decline, chargeback complications and blocking border-limit.
These problems that plague traditional gaming businesses, introduce an attractive entrepreneurial opportunity for Crypto Casino to use blockchain, through which Crypto’s property can settled globally in seconds without chargeback risk.
This is a decisive key sales point for on-and-and-ramping off-ramping Crypto Casino, stake, rubette and more.
But then, of course, SHFL token, an ERC-20 token on Ethereum. This is where the reshuffle becomes interesting and stands out of its crypto contestants.
While the reshuffle was originally used by a buyback and burn value absuel mechanism, it introduced a weekly lottery last year, which pays USDC rewards to pay SHFL token holders.
15% of Shafal’s weekly revenue (something like $ 200K-$ 300k) returns through this lottery, which is closed every Friday at a certain time. In words, the team told me that it is about 48% annual return.
(A new onchain lottery is going to happen soon Launched,
Another 30% of the gaming revenue earned in SHFL is burning, making an deflation sink for tokens.
To date, the reshuffle has burnt about 5% of its total circulating supply.
This decision was largely inspired by strategic customer retention reasons – because Buyback and Burns were considered as an abstract value, Fisher 8 Capital Investment Analyst Lai UN told me.
Because all token movements are onchain, one can track lottery prize funding, draw and burn in real time – the levels of transparency that are almost unheard of traditional gambling.
On Crypto Twitter, gambling businesses are largely left out of conversation, perhaps for moral reasons. I have talked to other sources that some liquid funds usually have a mandate to avoid sin vertical.
But no one denies that Gambalfi provides a unique insight into the technological innovation that brings blockchain.
Companies such as Shafal have exactly exact traction because they solve an acute payment-and-wheat problem for the global customer base that wants to gamble, and is ready to accept the regulatory risk in exchange for immediate deposit and rapid withdrawal.
This regulator-paying arbitrage is the veg that allows the Crypto casino businesses to expel the $ 80 billion gray-market industry despite the lump sum restriction in most major courts or the geoblock.
Shafal recently announced a plan to channel the model in an obedient American offering (Shafalusa), indicating the development extension on the horizon.
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