Fomo3D Ethereum App Pays Out $3 Million to First Winner
Fomo3D is the most popular Ethereum app at the moment. Fomo3D is a gambling sweepstakes with a twist: the last one to buy-in to the pot receives the lion’s share of the money.
Slate.com recently reported on the Ethereum game with the headline: “Is Fomo3D an incisive critique, a scam, or a little of both?”
That sums up the reaction of many people who hear about Fomo3D. After the first phase of the game played out and the winner was learned to have blocked all other gamblers from attempting to win, many are questioning the legitimacy (or fairness) of the game.
Fomo3D is straightforward enough, though people wonder if something is not a little suspicious about the whole enterprise. Fomo3D’s developers call the game “a psychological social experiment in greed“.
Fomo3D Blockchain Keys
To play, people must contribute buy-in fees to the Fomo3D blockchain. The game plays out over a maximum of 24 hours. The last person to contribute receives the bulk of the cash. Whenever a 30-second period passes without a contribution, the game ends. It tims out after 24 hours – no matter what.
It’s a bit more complicated than that. While much of the cash goes to the last buyer, the rest of the money is divided proportionally among those who bought the most “keys” – or spent on the most buy-in fees.
A non-prize winning buy-in round began in July. The buy-in fee began at 49 cents a key. By the end of Wednesday’s action, the prize was $2.22. It was estimated the buy-in pool was around $9 million.
First Phase of Fomo3D
The first phase of the game played out last Wednesday and it caused some degree of controversy. The winner collected around $3 million US dollars, but it was how he won that caused the headlines. The winner clogged the blockchain, effectively blocking out all other competitors in order to win the cash.
To do so, the winner had to block out automated key-buying bots, meaning some serious gamesmanship had to be planned. On the Discord channel, one of the developers said, “absolutely out f***ing skilled” the rest of the competition.
Fomo3D Might Lose Players Next Time
While Fomo3D caused a big buzz and paid off huge for the winner, one has to wonder if the results are good for business. If everyone who contributed realizes later they never had any chance of winning, then many won’t buy in to the game next time.
It is one thing to play the lottery and have a 1-in-290 million chance to win. Despite the long odds, a lottery ticket purchaser realizes they have a longshot, but everyone else does, too. With hundreds of millions on the line, it’s worth a $2 or $3 ticket for a shot at the big Powerball or Mega Millions prize.
If those same Powerball or Mega Millions players realized they never had a chance to win in the first place — that the eventually winner had rigged the game — not many would bet on the multistate lottery games the next time.
“Fomo3D Will Play Out Honestly”
An excerpt from the Slate article shows how the game was marketed before the prize was announced: “Far from just gambling, Fomo3D is an incisive critique of cryptocurrency and the hype surrounding it. All of the game’s transactions are conducted in and built on top of Ethereum, a decentralized computing system that has its own cryptocurrency and contract functions.”
“The idea is that players can feel confident that Fomo3D will play out honestly because Ethereum is based on open-source, distributed ledgers and contracts through which everyone can see where the money is, when it should be paid out, and to whom. But that isn’t true of every cryptocurrency venture.”
Casual Players Might Not Play Again
Whether those who played in the first version of Fomo3D still “feel confident that Fomo3D will play out honestly” is a big question. Everyone familiar with blockchain technology understands the blockchain’s record is transparent and keeps a fair record. It is the gaming of the system that turned a seeming game of chance into a game of skill — or perhaps a preordained giveway — that makes one wonder about the future of Fomo3D.
One imagines the hardcore blockchain aficionados might continue to try to beat the winner’s technique by gaming out an alternative way to win. A $9 million pot isn’t built solely by hardcore fans, though. The casual buyers of keys who thought of Fomo3D as a kind of random lottery will be disillusioned.