Monthly Update: August ’19
As usual here’s the monthly overview. Edgeless continues to pursue the goal of faster user growth. Let’s see what the team has achieved in August and we’ll take a look at the upcoming plans.
Reminder - why Edgeless needs more players
The fundamental force increasing the demand for the EDG token is new players wanting to use the Edgeless service and current players reusing the Edgeless service.
These two groups need to get EDG tokens to access the service. More people wanting to use the Edgeless service leads to a larger demand for the EDG token. In simple terms, their action leads to more deposits on the Edgeless platform.
The fundamental forces decreasing demand for EDG tokens are
- Current players who win large amounts of EDG tokens and then stop using the Edgeless service.
- Bonus hunters abusing the system. Let’s take a real example to get a better understanding of the damage that can be done by bonus hunters. 100K EDG token damage to the casino was made by one bonus hunter group during April to June. These two groups were getting rid of EDG tokens. In simple terms, their actions lead to more withdrawals on the Edgeless platform.
Deposits = increase in demand for EDG
Withdrawals = decrease in demand for EDG. Yes, player withdrawals actually decrease demand for the EDG token. It’s really important to understand this, if you want to understand the entire concept.
August in numbers
Gambling numbers for August
Wagered (Total): 33,201,517 EDG ( 48,383,033.00 EDG in July)
Edgeless had between 20 and 30 players per day. This number decreased compared with July. In the previous month Edgeless had 60 and 70 players per day. Here are a few guesses as to why Edgeless had less players in August:
- South Korean crypto exchange Upbit decided to delist Edgeless from its exchange. The reason why? Upbit will no longer list any projects related to gambling.
- As the team wrote earlier, the Welcome Pack one of the most anticipated marketing tools that has helped to gain more users. Unfortunately, the majority of new players were bonus hunters and bonus abusers, betting mostly with multiple accounts. This is the reason why Edgeless decided to improve the Welcome Pack and to temporarily disable this feature from the casino in August. The new Welcome Pack will be released in September. More info about the new Welcome Pack can be found below.
- The team added more security features to the casino. Therefore, the number of fake players and bonus abusers decreased.
To boost more casino player engagement, Edgeless
Released two new games - Hi-Lo and CRYPTO GEMS. Hi-Lo became one of the most popular games in the last week of summer.
Launched new competitions
Released special offers
Similar casinos — licensed operators, based on Ethereum blockchain and offering a betting service with KYC procedure — have between 10 and 17 players per day. (Dappradar.com stats). More stats about casino players can be found below.
In August Edgeless introduced the “Lucky Wheel”, one more way to extend VIP status. By spinning the wheel, stakers can win one VIP round, double bet or get a gift card which can be used in the Edgeless casino. During this month the gift card was used more than 260 times. The majority of stakers, who used the gift card, visited Edgeless casino for the first time.
Additionally, to extend VIP status, stakers can join the staking loyalty program or wager in the casino.
Edgeless bonus and ‘Welcome-package’
In April Edgeless launched a new feature, the ‘Welcome-package’ and bonus system. The main objective of this system was to incentivize new players to try the Edgeless service. Edgeless offered a ‘no deposit’ bonus for every registered player and an additional bonus package for deposits.
However, v.1.0 of this update had many flaws which attracted enormous volumes of ‘bonus hunters/scammers’. Thousands of people (from Venezuela, Brazil and other developing countries) were registering multiple accounts on Edgeless, collecting ‘no deposit’ offerings of 27 free spins and running away.
These people had no intention to use Edgeless services. Their main goal was to abuse system flaws and scam as much as they could.
In August, the Edgeless team finally shut down v.1 of the bonus system, which is why there is no Welcome-package offering of 7BTC on the main page.
Secondly, a major bonus update is in progress which will be rolled out in September. With the upcoming update, issues will be fixed such as multi-accounting prevention, account red-flagging and manual review tools for support, more modest bonus offerings and more.
The Edgeless team expects bonus system 1.1 to deliver what it’s designed to — the increased incentivization of new visitors/players to try Edgeless service.
In the graph, we can see a major spike in daily active players in April. However, most of these players were ‘bonus hunters’. When Edgeless released a larger barrier to ‘farm bonuses’, player base decreased significantly. We are happy to announce that the current player base consists of players who have the intent to use and pay for Edgeless services.
Search of new players/player acquisition
The main Edgeless 2019 goal is player acquisition. Edgeless wants to build something that people use, otherwise all the hard work is pointless.
The current crypto-betting market size remains a major challenge.
Right now the market size is incredibly small. During this summer Edgeless connected with almost every major crypto-betting affiliate possible. The entire marketing output is only 100 player registrations a month, which is nothing.
https://dappradar.com monitors the activities of every major cryptocurrency project, Edgeless ranks 5th with only 20 - 30 daily active players.
It’s easily visible that the entire niche (crypto/smart-contract betting) has only 1000 - 2000 daily active players.
After running traffic analysis, top crypto-betting brands offer their service in ‘online casino forbidden’ countries such as the USA, Turkey and others. They do it by offering an ‘anonymous’ betting service without asking players to complete the KYC procedure. Edgeless can’t compete in these markets due to legal risks.
The conclusion is clear. After 3 years, the entire crypto-currency market (in terms of daily users) did not move much. This betting niche is still incredibly small.
In order to scale, Edgeless needs to draw players from the classical online betting market. However, this process requires a lot of ‘client education’. Most people are not familiar with cryptocurrency concepts. Service education is an energy consuming process for the potential client .
This means Edgeless’ USP (unique value proposition) has to be so strong that the potential client would have enough motivation to learn how to use a cryptocurrency related service.
What is Edgeless’ USP, product-market fit, sales angel, etc?
Every product is competing in a specific category among many other products which provide similar services.
The online betting industry has thousands of service providers. Every service provider competes offering something unique others don’t have. For example: localized customer support, star-wars themed slot machines and other ‘unique’ features which competitors don’t offer/specialize in.
In simple terms USP answers the question, why the heck should people choose your product instead of a competitors? It’s the reason why people buy a specific service.
Today Edgeless offers the following unique features to attract players:
- 0% house edge games
- Extra transparency using blockchain
- Cryptocurrency betting
- Esport betting
After running several marketing campaigns, it’s clear that 0% house edge is a ‘weak’ feature to offer:
- 0% house edge games creates a false expectation for players as they assume they will not lose money because the odds are equal. However, they still lose money due to bankroll size and then complain that games are not actually 0%.
- 0% edge games decrease bankroll surplus significantly. That means the platform cannot offer additional programs such as jackpots, bonus systems, cash-back, etc.
For a betting service it’s way better to offer games with edge plus bonus packages or cash-back than to offer no edge games alone.
In the upcoming quarter, Edgeless will look for another ‘primary’ product USP to replace 0% edge games.
Other features such as transparency, cryptocurrency betting, esport betting and staking are still being tested. Marketing campaigns are running and collecting feedback.
So far it’s clear that there is a huge ‘service knowledge’ gap between the crypto-betting user and regular-betting user.
Key questions new users have:
- Why do I need to convert to the EDG token?
- Is the EDG token real? What’s the actual value of the EDG token?
- If I want to deposit BTC, can I convert back to BTC?
Edgeless is trying to close this gap by offering additional UI/UX improvements such as better currency display, explanations on how the EDG token is connected to the ‘smart-contract’ system offering additional transparency features, safety that players can convert back to BTC, EDG price stability and more.
The UI/UX update is almost ready. It will be deployed in September. Here is one of the options of how it might look.
Staking as a marketing channel
As it’s mentioned above, Edgeless is trapped in a super tiny/almost non-existing crypto-betting market niche without any strong USP. Total marketing output is 100 registrations per month.
In July Edgeless launched the Staking Loyalty Program. The main objective of this feature is to utilise the current staking community for new player acquisition. Secondly staking is a feature which almost no casino has, it can be a useful USP.
Current stats on staking:
- 13 rounds in total
- On average 245 participants
- On average the surplus is 176 468 EDG
Edgeless is running marketing campaigns to test if the Staking Loyalty Program hypothesis is possible. It’s still early to say whether it’s a success or failure. More marketing data is needed. The situation will be more clear in the upcoming quarter.
If there were other ways to attract players, the staking conditions would be reviewed. However with the current market situation, Edgeless does not see other options.
To sum up
The team is working hard on growing the user base. Edgeless is looking for new ways to gain users faster, including the new Welcome Pack, new USP and staking as a marketing channel.
The Edgeless team
The bankroll staking model is created to factor in recent legal developments in the crypto sector. Similar staking mechanisms are used by other crypto projects.
The Edgeless team follows all legal developments and, if needed, in the future there will be changes made to the principles of staking so that our activities will be in line with regulations.
The EDG token is a UTILITY token. It has no profit sharing, dividends or any other features associated with securities.