What is FunFair? Should you invest in FUN Tokens?

With these posts, we aim to provide an unbiased, clear, and concise analysis on cryptocurrencies that allow you to understand the technology and provide a quick stop that contains all relevant information. We do all the research so you don’t have to.   

General Information 

Website: https://funfair.io/ 

Product: Online gambling platform 

 CEO: Jez San (Significant experience in gaming and gambling industry) 

Maximum supply: 17,173,696,076 

Circulating supply: 3,839,463,249* 

Current price(September 28): $0.026807   

*11,035,227,259 tokens are locked for phase 2 ICO which may happen in October. However, the CEO has indicated that they may be burning a lot of tokens. They were intending to do a China focused ICO but due to recent ICO regulations in China, phase 2 may be cancelled. This could be a significant burn which will increase the value of existing tokens      

Product 

FunFair is a fast and fair online gambling platform built on the Ethereum platform. It utilises Fate Channels, which are off-chain channels for each transaction. Therefore, games and transactions can be processed quickly and won’t have to wait on the Ethereum blockchain. Odds are transparent and publicly auditable to ensure fairness. FunFair intends to license their platform to online casinos and companies, passing off marketing costs and operations to the licensee. FunFair itself will not operate any online casino. The following games are currently available in demo (NOTE: The platform has not been released yet): 

• Roulette
• Video Poker
• SLots
• Blackjack
• Baccarat
• Craps

Market Cap 

Current market cap on Coinmarketcap is $102,923,723 at a price of 0.026807. This is a little misleading as it’s using the circulating supply, NOT the total supply. I believe total supply should be used for a more accurate valuation as those tokens could be released any moment. Therefore, the real market cap is around $458.38 million at current prices. Keep in mind though that billions of tokens may be burned soon.

Reasons to invest   

•  Users have full control of their funds at all time. Depositing funds to online casinos will not be required. This eliminates the need to trust the casino
•  Fate channels, FunFair’s proprietary technology reduces transaction costs giving it an advantage over its competitors
•  Fair & transparent games will gain users’ trust
•  With a possible token burn of billions of token, value of each token may spike up. Supply and demand
•  Platform will be released in Q1 of 2018
•  Logo and website rebranding is coming within the next 2 weeks
•  Maximum supply is fixed, tokens are burned with each transaction. Therefore, token supply will only be decreasing
•  Binance will be listing FUN/BTC & FUN/ETH pairs which will bolster exposure. There is a reward program that will award the top 207 FUN token holders on Binance by October 1. This should give the FUN token price a lift but expect a huge decline after the top token holders receive their reward on October 1, 4AM UTC
•  Ethfinex (Sister company of Bitfinex – One of the most popular bitcoin exchanges) created this poll and FUN tokens took the top spot (https://strawpoll.com/ed6x8s2c)

Reasons not to invest     

•  Token values, like all cryptocurrencies, can fluctuate greatly
•  Fair games may reduce revenue for online casinos 
•  Uncertainty regarding adoption
•  There is a growing list of competitors: Edgeless and Etheroll
•  FunFair intended to do Phase II of the ICO in Aisa to provide them with liquidity and gain awareness.  However, the CEO has indicated that phase II may be cancelled. 
•  The CEO recently went to open a bank account in Singapore, most likely to expand operations in Asia. However, Bloomberg recently reported that cryptocurrency firms are facing bank account closure (https://www.bloomberg.com/news/articles/2017-09-26/singapore-cryptocurrency-firms-facing-bank-account-closures)
•  Awareness is low, therefore, order books are very thin. Large FUN token holders can easily manipulate the price