ICO Analysis: BX.BET

BX.BET is offering a decentralized blockchain-based betting exchange and prediction market ecosystem to tackle the fragmented market of betting.

BX aims to utilize the full power of blockchain and smart contracts to give users full control over their funds and betting transactions, with full transparency and total freedom to bet as they please. BX users will be able to take over the role of the bookmaker and create their own markets, and place/offer bets with self-determined odds.

The BX token will be a key component to enable all betting transactions. Users will be able to trade bets in three different markets: sports/esports, prediction markets, and financial markets.

The BX whitepaper also claims the fleshing out of interesting features like Oracles to create predictive markets, which is a pretty cool concept.

Token

A notable component of this pre-sale is the bonus structure, which incentivizes investors who contribute more than $15,000 with a 30% discount.

Team

The BX team carries a cumulative nine decades of experience in the betting industries and seems poised to handle the execution of the project well.

Verdict

Below is a rundown of the risks and opportunities associated with BX token.

Risks

  • Competition: A quick Google search shows 7 projects offering a decentralized betting program, and that’s just the first page. Yes, creating a decentralized betting platform is a good idea, so good an idea that dozens of teams are working hard to execute it. One of the more notable competitors is Augur, hit a market cap of over $1B (currently at ~$140M), made a big splash and is generally assumed to have first mover advantage in the space. However, to look at BX’s competition within the crypto realm is doing it an injustice, especially when you look at how fragmented the betting landscape has been. -3
  • Regulatory risks: A huge reason the products and companies in the betting sector have lagged behind is regulation is incredibly tricky, especially for a project looking to create an international betting platform. The BX team has to deal with dozens and potentially hundreds of different authorities. It’s decentralized in function, yes, but not decentralized enough in company structure to avoid any regulatory upheavals. -2
  • Steep team/advisor token ownership:Only 60% of the tokens will be sold to the public. It’s worth noting that of the token sale, 10% of the tokens go to the team,15% go to a “company reserve”, and 10% go to advisors. So, of the $20m hard cap (if reached), the team gets $2M, $3M goes to the company reserve, and $2M goes to advisors. That’s about  $222,222 average per the 9 team members (locked for 2 years), $666,666 average per the 3 advisors, and $3,000,000 in what I’m assuming is a rainy day fund. This doesn’t necessarily signal foul play, but as an investor, I would be slightly concerned that 35% of all total tokens stay with the company in some capacity, either as compensation or as a reserve. -2

Growth Potential:

  • The current betting landscape is a disorganized mess: If you want to bet on an NFL game, for example, you’d have to either contact a bookie to place the bet for you, or have a custom log-in on whatever site that bookie uses (or just bet someone next to you, but that’s not always convenient). If BX.BET can clean up this fragmented ecosystem and provide users a central place to bet freely without the obstacles, I could see it picking up a ton of users from scattered betting sites. +3
  • Removal of the third party bookmaker intermediary: Value tends to be created for the users of any decentralized platform that removes third party intermediaries, such as bookies. This means better betting terms and odds, leading to higher customer satisfaction. +3
  • Size of the industry: The BX.BET promotional materials place the betting industry at $60 billion and an annual growth rate of 10%. +2
  • Discounts are appealing: The pre-sale hasn’t started yet, but those wishing to invest anywhere between $300 to $15,000 can see between 15% to 30%. +4
  • Capable team:  The BX team consists of a group of people who have deep experience in this industry. In a niche with such a high rate of competition, the team is going to make the difference. +1

Disposition

We arrive at a +6 or BX.BET. The project seems very well put together and the app has a clean interface, but the level of competition, regulatory risks, and team compensation give me hesitations.

Investment Details

  • Symbol: BX
  • Platform: Ethereum
  • ICO Date: Oct. 15, 2018
  • Minimum Investment: $100 USD
  • Token Price: 1 BX = $0.19 usd
  • Payments Accepted: BTC, ETH, fiat
  • Country: Malta

The token sale starts on October 15th. To find more information on the project, check out the BX.BET website and BX.BET whitepaper.

Featured image courtesy of Shutterstock.

Author:
Alex Moskov is a writer and entrepreneur with a passion for building and creating awesome things. Alex has experience in music tech startups, digital marketing, and cryptocurrency investing.