Gambling Game Fomo3D May Explain Why Ethereum Network Congested Again
A crypto gambling game called Fomo3D had gone viral over the past weekend in the Chinese crypto community. Having amassed 21,369 ETH, mostly in last few days, the Ethereum-based lottery-like game gives a vivid picture of fomo (Fear-of-Missing-Out) as its name suggests.
Fomo3D is a decentralized app (dApp) running on the Ethereum network. Its creator makes no secret of the fact that this is a Ponzi or pyramid scheme in which the earnings of “investors” are paid by new “investors”. It goes well until there is no one to get in, and this is exactly when the whole system collapses. Such systems have been in existence for over 100 years.
What is new is that there are now additional possibilities with Ethereum Smart Contracts. In a Ponzi scheme, the latecomers lose the most, while in Fomo3D, the last person to buy a Key at the end of a round wins the pot.
The rules in Fomo3D briefly is when an individual is the last person to buy a Key (the in-game token), he/she will win 48% of the ETH accumulated in the pool; while once someone buys a new Key, 30-second will be automatically added to the timer whose upper limit is a 24h countdown. With each Key purchase during the round, the Key price increases a little bit until no one can afford it and then the round is over, and a new round will start.
So the way to participate is to exchange Keys with ETH. The current price of a Key is roughly 0.00544 ETH, almost 5-fold increase from 0.00112 ETH of the same time yesterday.
After the round of game is completed, 48% of the total ETH accumulated goes to the winner, other 50% of the ETH will be distributed to players of four teams (players choose to join a team from snake, bull, bear and whale with different dividend rules), and the rest 2% will go to the developing team of this game.
Considering the ETH obtained, the new crypto game could be called a success. The creators of Fomo3D seem to have a penetrating insight of human nature, and cleverly play them against the players, among which are greed, the tendency to gambling, addiction and Fear-of-Missing-Out. As it reads on its official website,
“We’re pretty sure this is some form of evil super-science”
“Welcome to a psychological social experiment in greed”
“Look at them, thinking they can win this anonymously, stop them”
“Do your part, DDOS Ethereum with this one simple purchase of a Key”. The recent congestion in the Ethereum network also shows the craze of this game, a total of 75,892 pending transactions were found shown on etherscan.io, and transaction fees in the past days once surpassed the record highs in the CryptoKitties craze.
As of press time, the accumulated ETH has been up to 21,369 ETH (roughly US$10 million), and the timer is counting down freshly from 24h again and again. It might never end, or another CryptoKitties, only time will tell.