If the rise and rise again of crypto games proves one thing it’s that people are not afraid to take risks with their crypto holdings. Rather than simply confirming the general consensus amongst the uninitiated that crypto enthusiasts are mere speculators, the boom in crypto games shows just how far mainstream adoption of crypto and crypto games has come.
The numbers don’t lie
Once you understand that globally, the gambling sector will probably be worth more than $565 billion by the end of the year and that currently nearly half of all transactions between online gambling sites and their users are done via Bitcoin, you can begin to understand that the boom in crypto games isn’t coming. It’s already here. And it is only going to get bigger.
As more people put their money into crypto, more developers will be looking to enter the space and be at the forefront of the latest craze in crypto games. The challenge for them is to create something that can rival the likes of the current excitement around Lucky Block.
Lottery-based crypto games
The crypto lottery game, Lucky Block, is currently widely regarded as being one of the most promising crypto games out there. Lucky Block launched with massive levels of presale demand and within two days had stormed past a market cap of $140 million. Currently, Lucky Block’s market cap is sitting around half of its previous valuation at $77 million. Some analysts remain optimistic, suggesting the project is well placed to reap the rewards when the crypto market turns bullish once more. Others still predict it will be the next crypto to go 10x.
After reading the developer’s White Paper, one can be forgiven for getting swept up in the hype. The team behind Lucky Block are indeed promising much.
As well as monopolizing the crypto games market, Lucky Block wants to disrupt the $230 billion global lottery industry. They are envisaging a global lottery game that runs on the Binance Smart Chain. With the aim of bringing greater transparency and value to lottery players, Lucky Block claims to have created a fairer lottery within which every player has a better chance to win. Not only that, but they are also promising solid ROI for LBlock token holders all the while making a contribution to society.
We’ve heard it all before
We’ve seen crypto projects with huge presale interest and first-mover advantages disappear into the ether. We’ve also seen crypto projects over-hype their potential and end up not delivering on their promises.
So, before we get too ahead of ourselves, it’s important to take a step back and assess the risks associated with investing in Lucky Block.
Is Lucky Block (LBLOCK) a good investment?
Buying LBLOCK tokens enables users to play Lucky Block’s games. Investors purchase the coin and use it as a substitute for conventional lottery tickets.
LBLOCK’s value soared from a listing price of $0.00290 to a peak of $0.0096 in less than a month after becoming available on PancakeSwap in January. The asset has now plummeted to a present price of around $0.0025. Notwithstanding this fact, Lucky Block is still being touted as a future game-changer in the crypto games market.
To figure out of this is an accurate estimate of Lucky Block’s potential or not, we must first understand the utility of the project.
According to their White Paper, Lucky Block is aiming to become the world’s pre-eminent crypto games platform by offering players greater transparency (thanks to blockchain technology) and instant payouts.
The Lucky Block White Paper goes on to point out that games of chance online and IRL are susceptible to hacking or being fixed. Not so games on the blockchain. This publicly available ledger makes it impossible for systemic rigging of a game’s outcome to go on unnoticed.
Furthermore, Lucky Block is promising users fast withdrawals of their prize money.
Withdrawing your winnings in crypto when gambling online is a notoriously slow process. Banks are yet to get on board with the whole crypto thing and this friction between old and new systems can often lead to delays of several days (or even weeks) when cashing out. Lucky Block has stated its intention to side-step this problem by allowing users to withdraw their LBLOCK tokens instantly after a win.
On paper, Lucky Block presents itself as a crypto project with a real-world use case that could potentially make a difference in people’s lives. However, taking a closer look reveals some worrying signs.
Lucky Block is registered in the Cayman Islands. This may not seem like an issue at first, but when you consider that the company is seeking to offer lottery services, it starts to look a little fishy.
There is no mention of a gambling licence on the Lucky Block website. This crypto project could be in hot water further down the line if it’s discovered that they are operating a lottery without the requisite licences.
The team behind Lucky Block have a questionable history when it comes to crypto projects. Stay with us on this one, and follow all the links. This is where things start to get very murky indeed.
As mentioned, Lucky Block is registered in the Cayman Islands as Block Media Ltd. Aside from the fact that this is a move to skirt UK tax laws, there is another twist. Another business using the exact same company name also recently registered in the UK. Take a look at their listing on the official UK government company name register here, and be sure to check out the two people named as the directors of Block Media.
Meet Mr. Oliver Parish and Mr. Luke Jewitt.
Do these names sound familiar?
You might be thinking that these two aren’t connected to Lucky Block. After all, according to the White Paper, they aren’t members of the Lucky Block team. However, thanks to the diligence of a few Redditors, a possible link has been uncovered.
Mr. Parish was named on the original website of StakeMoon as CEO. StakeMoon is widely rumoured to be a scam project that none other than Scott Ryder, the Lucky Block CEO himself, once promoted. In fact, he is still currently listed as StakeMoon CEO.
Now, Luke Jewitt’s name probably rings a bell since he shares a last name with Lucky Block ambassador Jamie Jewitt, a former UK Reality TV star. Luke Jewitt and Jamie Jewitt are brothers. As it turns out, Luke Jewitt was sentenced to 10 years jail for his involvement in a £5.2M drug smuggling operation in 2016.
So, all this murkiness begs a few questions: how reputable are the people behind the Lucky Block project? Is a convicted criminal actually part of their team? How will Lucky Block gain a gambling license when you must be beyond reproach for this to occur?
Reddit is currently awash with rumours that Lucky Block is nothing more than a scam. Redditors point to the fact that the ‘lottery’ is seemingly postponed in perpetuity and project milestones are never achieved.
There is also the allegation that the UK Gaming Commission is after Lucky Block for calling themselves a “lottery”, and that any hint of this word has now vanished from their branding. Considering the project’s utility in offering a fairer lottery for users, the future for Lucky Block on this front doesn’t look bright.
Combine this with the very public records of the team behind Lucky Block spending big on holidays and lavish lifestyles, and potential investors would do well to be very wary of this project.
Could the risk be worth it?
Any investment carries with it a degree of risk. But, when it comes to crypto projects, some are definitely riskier than others.
Lucky Block may have caught your eye with its flashy marketing and promises of big returns. But, as we’ve seen, there are some very real concerns about the team behind the project as well as the viability of the project itself.
It’s always good advice that before throwing your money into any crypto project, you do your own homework. And, if something sounds too good to be true, it probably is.
The crypto world is full of projects that are nothing more than scams. And, while Lucky Block may not be an out-and-out fraud, there are some red flags that investors should be wary of.
Lucky Block may have taken the crypto world by storm, but is that necessarily a good thing? Only time will tell. For now, we urge caution for anyone considering investing in this project.
That said, if the Lucky Block team are successful in steering the project through the process of attaining a gambling license and they can meet their future promised milestones of expanding into the NFT space and gaining further traction through marketing and charity fundraising, then the project could still turn out to be a huge success. But that remains to be seen.
What are your thoughts on Lucky Block?