Stocks.bet lets you bet on companies using a blockchain-based decentralized app. Here’s our review.
What Is Stocks.Bet?
Stocks.bet claims to be the first blockchain DApp that lets you hedge risk on the stock market when the markets are closed.
Key functions of Stocks.bet include a pari-mutuel betting DApp and a spread betting app.
A token sale for Stocks tokens (STBT) is expected to begin on March 25, 2018.
The beta version of the Stocks.bet is already online today. It allows you to bet on the short-term price movements of stocks like Apple, Microsoft, and Google. Betting opens the moment the markets close the day before and continues until 30 minutes before markets open the next day. Price movements are tracked during the first 60 seconds of the opening of the market.
How Stocks.Bet STBT Token & Stock Market Blockchain Betting Works
Stocks.bet advertises itself as “the ultimate combination of betting, blockchain technology, cryptocurrencies and stocks.” It’s an Ethereum smart contract-based DApp that allows you to bet on the price of listed stocks (like Apple, Microsoft, and others), then win from everyone who bets against you.
Users bet with ETH on one of the listed stocks to have the highest gains in the first minute of trading. All bets are placed in the blockchain, allowing users to see the total number of bets, the total bet amount for each stock, and the payoff odds deriving from them. This allows users who follow the crowd to easily pick a winner – although the consensus pick obviously comes at a lower reward.
Meanwhile, bettors who want to expose themselves to a higher degree of risk can choose an underdog for larger payouts.
Obviously, there are similar betting websites out there. Stocks.bet, however, seeks to differentiate itself from the competition by not requiring users to signup or deposit funds to a centralized entity.
Stocks.bet’s development is open source. All funds are secured by Ethereum smart contracts. Stocks.bet enables a completely trustless peer-to-peer betting environment, with prices pulled from the AlphaVantage.co API using Oraclize.
Stocks.bet will also offer a user-friendly interface designed to capture a wide range of users – from casual bettors to serious investors.
In layman’s terms, Stocks.bet lets you bet on stock prices. You bet on which stock gains the most money over a certain period of trading – like the first minute, the first hour, or an entire day of trading. You’re betting on major, large cap stocks like Apple and Microsoft. Here’s the basic process with each bet:
During the betting period, Stocks.bet will deploy the contract and open betting. The betting period begins when markets close (say, at 16:30 New York time). Betting remains open until stock markets open in the morning.
Bets are locked 30 minutes before the markets open for the day (830 New York time).
The rally period ends after a certain period of time. Prices are fetched at 9:31 New York time to determine the winner. Prices are compared to the closing price the day before, then the rewards are sent to the winning bettors.
On the technical side of things, Stocks.bet’s back-end consists of a smart contract on the Ethereum blockchain (written in Solidity). Node.js and the Truffle framework is used for the administration and management of the contract and the front-end. Apart from this core logic, Stocks.bet uses Oraclize for smart contracts and blockchain application management, OpenZeppelin for additional smart contract development, and Arachnid/solidity-stringutils as a utility library for Solidity contracts.
The beta version of the Stocks.bet platform features stocks for three companies, including Microsoft (MSFT), Google (GOOG), and Apple (AAPL).
How Do Stocks.Bet STBT Tokens Work?
Stocks.bet tokens are listed under the symbol STBT. STBT token holders will earn all of the profits generated by Stocks.bet directly in the form of ETH.
Stocks.bet will generate profits from the takeout – a small cut taken from the betting pool of all stock’s rallies – before paying out the winner.
Currently, Stocks.bet charges a takeout fee of 5%. They claim that other betting platforms typically charge rates of 15% to 25% in standard betting. Using a decentralized model, Stocks.bet is able to keep costs low.
Stocks.Bet STBT ICO Details
The Stocks.bet token sale for STBT tokens will take place from March 25 to June 30, 2018.
There will be a total fixed supply of 125 million STBT tokens minted prior to the token sale. The tokens are ERC20 tokens on the Ethereum blockchain.
Of the total supply, 100 million STBT tokens will be available during the crowdsale (hard cap), with a 2.5 million token soft cap. Founders will receive 18.75 million STBT tokens.
Of the funds raised from the crowdsale, 60% will go towards development costs, 5% to bankroll, and 35% to marketing.
Who’s Behind Stocks.Bet?
Stocks.bet was founded by three anonymous individuals with experience in web development, blockchain development, and financial analysis.
Stocks.bet’s team is deliberately anonymous. Here’s how the company explains it:
“The team prefers to be anonymous for the benefit of the project until there is a need.”
Despite the anonymity, the Stocks.bet team is open and transparent about its work. You can visit the Github page here. The project is open source. The team can also be freely reached on other social media platforms.
Stocks.bet lets you bet on the price of stocks using the Ethereum blockchain. The concept is somewhat similar to binary options trading: you’re betting on the very short-term price movements of stocks.
In the beta version of Stocks.bet, for example, you can bet on the price movements of Microsoft (MSFT), Google (GOOG), and Apple (AAPL) stocks during the first 60 seconds of the market opening (from 930 to 931am New York time). If you choose the correct stock that gained the most money during this brief period, you’re entitled to a share of the payout.
To learn more about the platform and how it works, visit online today at Stocks.bet. The company’s crowdsale begins on March 25.