Why EDG is Undervalued: The Hype Train, The Drop, The Gambling License, and More
Why Edgeless is a Marketable, Unique, and Profitable Idea: Most of what I’m going to write here will be directly copied and pasted from the team’s white page which I encourage you to read yourself. The online gambling industry was valued at USD 45.86 billion in 2016. However it has two major problems: the price of the gamble and transparency. Edgeless wants to be a decentralized online casino that wants to implement complete transparency, no fees for withdrawing or depositing, and most importantly, the casino will have 0% house edge. The casino will profit through player mistakes and imperfect play and the concept of gambler’s ruin and variance.
The Hype Train: So let’s begin with the hype train that caused EDG to become inflated that set the stage for a more than 40% decrease in value. EDG gained the majority if its recognition from the cryptocurrency community through an article on steemit titled: “The Next Rockets? Most Interesting tokens in TOP 100 market cap” and an article from PokerStrategy.com where poker professional Mark Kennedy said that Edgeless was one of the most interesting gambling projects at the moment. It was shortly after the release of these articles and the video demonstration of Edgeless’s BlackJack that the project began to sky rocket in value, increasing from $0.62 to $1.47 in less than a week. During this time, investors began to draw many assumptions from upcoming updates. Many assumed, without any concrete information, that on September 28th Edgeless would announce they obtained their Curacao gambling license and that there would be a full launch. Many in the r/edgeless community speculated how much the value of EDG would increase on launch with their assumptions ranging from $2 to $20. These unrealistic expectations set the condition for the big drop.
The Big Drop: On September 17th EDG announced that their launch would be a “soft launch” only available to 800 people, and that more information would become available about the Curacao gambling license in October. This, of course, was not the moon landing that many investors expected and the price for EDG plummeted from $1.40 back to approximately $0.80 where it hovers between $0.70 to $0.90. The reaction from the community revealed hysteria and how little investors really understood what they were throwing their money toward. Some posts called for the edgeless team to apologize for rumors generated by the community while others demonstrated a clear misunderstanding of the purpose for the license, why it was delayed, and what the license was even for. Some started to doubt there was even a product despite there being videos of the development of the product and a launch date.
The Gambling License: The purpose of the Curacao gambling license was misconstrued by some in the community that Edgeless wouldn’t be able to operate at all without the gambling license. However, Edgeless was trying to obtain a Curacao gambling license to legitimize their business and so that gamblers could deposit fiat on to the site rather than just EDG tokens. The only reason the license was probably delayed was because Curacao, from 2002 to 2014 used to have their own vetting systems for online casinos called the CFATF that was a haven for many money laundering schemes and even terrorist financing. This changed in 2014 when Curacao agreed to conform to the vetting procedures of the FATF (vetting procedures which 36 other countries follow). Since the tech that Edgeless is using is new to online casinos, undoubtedly the FATF regulators want to ensure that the smartscript technology that Edgeless uses to generate the randomness of their games is legitimate.
Why The Soft Launch and Licensing are The Right Steps for Edgeless: Why this was a mystery to previous investors is still a mystery to me. Why would you not test the security and quality of the product on a select few rather than just releasing it to everyone and it possibly failing miserably with bugs, glitches, and security breaches? The Edgeless team can use the feedback from the soft launch to further increase the quality of their product before making it public. Furthermore, the Edgeless team is confident they will obtain their Curacao gambling license, which will legitimize their business and set it far apart from the other scam casino’s that implement unfair house edge.
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