Augur Blockchain Gambling dApp Suffers From Lack Of REP Trading Volume, Under $100,000 At Stake
Gambling dApp Augur Is Suffering From Lack Of Volume
On January 9th, popular decentralized gambling platform Augur released their scheduled weekly report. The report stated that the Open Interest in Augur metrics to be $2,040,934.63 USD (13,451 ETH) and CASH Contract to be $1,896,284.45 USD (12,498 ETH).
Tetras Capital Founding Partner Alex Sunnarborg did a detailed analysis of the report and found that the total volume on Augur is less than $100,000.
Sunnarborg was quick to notice that even though the volume shows to be close to $2 million if one includes the markets that have already ended, it comes down to a mere $100,000. He added:
In fact, taking a look at dappradar, Augur is ranked 42nd in its rankings with only 27 users and a 24-hour volume of $11.4K. The weekly volume is even worse at just $56.4K.
Things were looking up in November when the US midterm elections were on. The platform had recorded bets of close to $2 million. The usage of this platform, as of now looks like, is seasonal. When there are things happening to bet on, traction picks up. Although normal betting events like sports haven’t been able to gain much popularity, mostly due to the high volume of competitors.
Through Augur, users are able to predict markets based on the result of virtually any future event untrustingly on the platform. With a designated reporter, users can create markets for an event and thereafter can buy shares on the likely outcomes. The settlement fees are then disbursed based on the outcome at the end of the event. The platform has an integral conflict solving design and rewards REP token holders to correct any incorrect information available. The whole process is done in a peer-to-peer way without any consolidated party.
Augur has recently been in the middle of a controversy because of lack of moderation on the platform. One can bet on any issue without being any threat of removal. Of course, this led to people making bets on assassination on controversial figures such as US president Donald Trump and world’s richest man Jeff Bezos. This incentivizes people to commit this act for financial benefits. People had made bets on the survival of late US Senator John McCain. Making money off someone's death doesn’t seem to be like the most ethical thing to do.