Ethereum's gambling problem gets worse every day, Ponzi schemes increase

20 August 2018 at 10:06 // News

  The warning cries are mounting, coming from technologists who are not clear for their secrecy of risk, a collection that includes the developers themselves.

From July this year, things like Ponzi schemes, fraudulent schemes in which previous investors are paid with the money taken by new investors, giving the impression that the scheme is a viable investment, they have flooded the rankings among decentralized applications (dapps) that operate on the biggest blockchain in the world, even surpassing the rhythm of the famous CryptoKitties.

But if the user counts and the volumes of transactions seen on these applications are huge, the amount of interest is greater than the many risks that consumers feel when using them. Cries of warning are mounting, coming from technologists who are not clear to their risk of secrecy, a collection that includes the developers themselves of the game of chance.

Gambling Dapp

The JUST team, developer of FOMO 3D, a group of unknown developers behind the gambling game, warned last week that what appeared to be an almost similar copy of his game was chewing
one third of the total computational power of the network, increasing more
$ 7 million in Ethereum within a period of one week.

The JUST team has communicated privately and publicly, claiming that the game of impostors is "LastWinner", a Chinese mobile app, developed to "trick" users by displaying fake bot-related gambling activities.

The JUST team reports that the game basically uses its 200,000 Ether, as a means of facilitating thousands of transactions that are performed by computer robots. The goal is to offer the legal and popular gambling appearance of the game, in order to entice users to participate with their own Ether hoping to win and collect big.

An unstoppable force

Pseudonym "Justo_Bot", warned users that LastWinner could be managed by illicit criminals. He wrote:

"The scale of this portfolio, the scale of these robots. The amount of pure gas you are using I sincerely believe you're probably looking at a criminal syndicate that runs this in China to cheat people on a scale that the ethereum network He's never seen before … He's very ugly. "

However, just because something looks like a fraudulent affair, it does not mean it is.

Lane Rettig, developer of Ethereum, the determinations on the panorama of the operation created by the alleged LastWinner can not be positive.

Amberdata's CEO, Shawn Douglass, said that gambling and matching clones do not seem to disappear at any time, given their attraction to a growing user base on Ethereum.

Douglass noted:

"If there was a demonstration mechanism in which you can enlist a lot of participation and accumulate a large amount of money, I think you will see more … I do not think the foundation ethereum can control it as a decentralized organization ".

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