Coindirect is an open source platform for online gambling that aims to decentralize the casino industry – just like blockchain technology has decentralized other industries. Here’s our review.
What Is Coindirect?
Coindirect is an online gambling platform that is currently in the middle of its ICO. That ICO started on April 1 and will last until August 31, 2017, with the final public release of the gambling platform taking place in January 2018.
The company was co-founded by blockchain developer Nico Ami Lee. The goal of Coindirect is to decentralize the gambling experience by allowing players to send major crypto-assets directly to other players. The service will also decentralize gambling even further by moving casinos away from managing player’s funds.
In order to achieve these goals, Coindirect will use well-established blockchain networks like Bitcoin, Ethereum, and BitShares.
Overall, Coindirect claims you can “make money from every online casino transaction”. Coindirect takes a 0.5% cut of every transaction, then distributes those cuts between shareholders. During the ICO, each share is priced at $100 USD.
What Problems Is Coindirect Trying To Solve?
Coindirect is scheduled to launch its beta on October 15, 2017. Beginning on January 1, 2018, the company plans to start mass-scale marketing. Without a beta, we don’t know exactly how Coindirect will work. However, we do know how the company plans to make it work.
Coindirect is designed as an open source platform for online gambling where bitcoins are sent directly from player to player. This eliminates the third party – the casino – and their high fees, transparency issues, and deposit/withdrawl delays.
Online casinos have been some of the biggest winners of the rise of cryptocurrency. As the Coindirect.io official website explains, “The rise of cryptocurrency in online gambling world [sic] reduced the expenses of every online casino customer”. Bitcoin gave casinos a way to offer instant money transactions, low fees, and anonymity.
Over the years, the presence of cryptocurrencies in online gambling has continued to grow.
However, there was one consistent problem with online gambling: even when using cryptocurrencies like Bitcoin, casinos have high fees and transparency issues. Even using methods like “Fairness Check”, casinos were able to hide crucial information from players.
Another problem is that online casinos took a long time to deposit and withdraw money. That’s because they relied on fiat currencies. Moving traditional currency from one account to another is expensive and time-consuming. It also requires a third party.
Coindirect has an idea to solve that problem: decentralizing the online gambling industry.
How Will Coindirect Work?
The best way to explain how Coindirect works is to use the Texas Hold’em explanation on their official website, which explains Coindirect like this:
- At the beginning of the game, players do not need to make deposits; they just need to have bitcoins in their wallets
- The bitcoin balance is visible through a blockchain network; it’s impossible to alter that Bitcoin balance and all players can see it
- The blinds and bets are monitored by Coindirect’s open source platform; players can only bet if they have enough funds – just like an ordinary casino
- When the game is finished, the hands are evaluated and coins go from players to the winner based on the blends and bits made throughout the game
- As soon as the blockchain network nodes are able to acknowledge that the transaction was successful, the next game can be played
Advantages Of Coindirect
Some of the advantages of Coindirect over other online casinos – even cryptocurrency-based casinos – include:
- Complete transparency of the game
- No risk of frozen funds by the casino
- Instant transaction of the funds to and from players directly to/from wallets
- Very low fees
- Complete absence of a deposit/withdrawal process
The absence of a deposit/withdrawal process is important. Traditional online casinos can hold onto players funds, charge high fees for withdrawals, and implement other shady measures to ensure players never withdraw their funds.
By eliminating the third party from the scene, Coindirect plans to achieve all of the objectives listed above.
Who’s Behind Coindirect?
Coindirect was founded by blockchain developer Nico Ami Lee. Other key members of the team include Viktor Bekturganov (cryptocurrency investor, speaker, blockchain analyst, and cryptocurrency investment advisor), Samuel Haidifi (professional poker player and bitcoin enthusiast), and Ronan Saeyong (IT security specialist with a computer science degree).
You can contact Coindirect by email at [email protected]
The Coindirect ICO
The ICO started back in April and it’s scheduled to take place until the end of August (August 31), 2017. A total of 6500 shares will be issued during the ICO. Each share is priced at $100. A minimum of 3900 shares need to be sold. Otherwise, funds will be returned to investors between September 1 and September 5.
54% of money raised from the ICO will go to operations (development, project management, and salaries), 10% will go to legal costs (registration fees, lawyers), 27% will go to marketing, 4% will go to online traffic generation, and 5% will be used as a safety margin for unpredictable expenses.
Why would you buy a Coindirect share? Each share is a digital asset that represents ownership rights to dividends of the Coindirect online casino. You can make money off of every gambling transaction that takes place on the Coindirect website.
Coindirect claims that there’s a great chance for investors to secure a stable monthly income when the platform goes public. Here’s how the Coindirect profit sharing works:
Every bitcoin transaction between players include a 0.5% fee that will automatically transferred to the Coindirect account.
These bitcoins will be divided into two parts (65% and 35%), with 60% used for further development, maintenance and marketing, 5% used as management fees, and 35% shared every month between all shareholders
Based on the math on the official website, the company’s founders claim the possible annual profit from 1 Coindirect share could be $12,115 per year (giving you a total of $606 of profit). As the company continues to grow and take a bigger share of the gambling market, they claim one share can bring in $2544 per year.
If you wish to sell your Coindirect shares in the future, you can sell your shares directly to Coindirect or to a third party.
Coindirect’s ICO continues throughout the summer and is scheduled to end on August 31. Stay tuned for more information as Coindirect continues to grow and tries to grab a bigger share of the gambling industry.