An online casino platform based on cryptocurrency has mysteriously disappeared, leaving investors with pretty much worthless tokens
Where Has DooTron Gone?
A gambling application based on the Tron network called DooTron appears to have gone missing in the past week. There has been no indication given as to what may have happened.
Two tokens were available on the DooTron platform. The DOO token came from a complex Hi-Lo game. At the time of the platform’s disappearance, there were more than 59 million DOO tokens in circulation, with 1,204 separate holders. A further 12 million tokens are frozen, with the holders unable to get their dividends.
Not long before DooTron vanished, a second game on the platform was launched, with its own token. Shoot was a variation of Hi-Lo. Slightly more than 1.4 million SHOOT tokens were issued as it was a newer game. A number of exchanges withdrew these tokens from their platforms after DooTron vanished.
At a Tron-based casino for every bet a person makes, they will get a casino-centric token. Thus, the more bets they make, the more tokens they will get. The tokens can be sold or kept in order to get dividends from the casino’s profit pool. Certain Tron casinos will have as much as 70% of all profits in the pool.
These games are deemed to be fair as the game results were determined by the Tron blockchain. This system is even fairer, and tougher to mess with, than the usual types of online casinos.
With every play on the casino, more tokens are mined. Of course, there will be more tokens when the casino is more popular.
The fact that cryptocurrency exchanges delisted DooTron supports some people’s view that there was some form of investigation into the platform and the operators of the casino may have decided to run for it. A lot of investors took to Twitter to express their disdain at this news.
Some people pointed out that the tokens that are currently frozen will still be able to issue dividends. This is due to the smart contract that is in place. However, those tokens that are available to withdraw are worthless, because no exchange will list tokens that are useless.
For those who invested in the DooTron platform, they will just have to wait and hope that it will magically reappear online.
The World of Cryptocurrency
When the cryptocurrency sector was in its infancy, it was mainly tech-savvy people who spent a lot of time online who knew about Bitcoin. For most people, however, it was an alien concept.
Over the years, the likes of Bitcoin became associated with criminal enterprises. Bitcoin, for example, has been the main form of currency for dark web marketplaces for illegal goods and services, such as the Silk Road. As a result, stories in the mainstream media, for the most part portrayed cryptocurrencies in a negative light.
However, in 2017 it was boom time for the sector. Monumental gains were made across the board, with the price of Bitcoin rising from less than $1,000 at the start of 2017 to nearly $20,000 by the end of the year.
Everyone was hearing about these massive gains and how people were becoming millionaires almost overnight. People who had no idea about cryptocurrencies were taking out loans to invest in the hope of making quick profits. This led to a bubble which ended up bursting in 2018.
Institutional investors have been putting a lot of money into the space and government authorities have been developing rules and regulations for the sector.
Blockchain technology is the basis of all cryptocurrencies. This technology has countless different applications. Many startups utilizing blockchain technology would issue their own digital tokens in exchange for investment funds. This was through an initial coin offering (ICO), which is a similar idea to an initial public offering (IPO).
This allowed many great startups in the sector to flourish. However, it also led to a lot of unproven projects obtaining funding and ultimately failing, leaving investors with pennies on the dollar.
During the cryptocurrency wave in 2017, many online gambling platforms began adding the likes of Bitcoin as a deposit and withdrawal option. And new online casino platforms sprang up, operating solely through cryptocurrency.
The idea was that transactions could be done almost instantly and for cheaper. It would also help people stay more anonymous when they were gambling online.
Many gambling-related blockchain startups began to crop up and get investments. But with the disappearance of DooTron, investors may become wary.