Problem

The original gambling model is an intermediary-based model where players play against the middleman (the house). If you have been to a casino or tried your luck at sports betting you know that things always favour the house.

The problem with this model is that the middleman applies house edge on every single bet player make. It doesn’t matter if you win or lose the house edge is always applied before you start playing.

The middleman’s profit is what the players lose during the games.

So the main problems in betting are:

• High fees
• House edge applied on every single bet
• Bets can be manipulated

This is what ByteBet intends to change in an interesting way.

Solution

ByteBet uses blockchain technology to eliminate the middleman by creating a decentralised betting platform.

This means that players don’t play against the house but against each other. The money a player loses will be the prize another player wins. The money stays in the community instead of landing at the intermediary. Players can also create their own, customized bets on the platform.

How will ByteBet generate profit?

Profit coming from the fees and levied on the winner’s prize. According to ByteBet, their fee is not more than 1.5%.

This image from ByteBet’s whitepaper shows how the betting process works:

Benefits for token holders

ByteBet’s tokens (BBET) can be used to create and take part in bets.

The biggest benefit is that a portion of the fees are shared with token holders and community members who help validating the bet results.

This works like a proof of stake concept, the more BBET tokens you own, the more BBET tokens you receive after the games. This way a token holder can receive a portion of ByteBet’s profit.

Team

According to ByteBet’s website the project has three team members. A really positive thing is that their LinkedIn profile is publicly available. Checking their profiles turned out that they have already worked together in a tech startup for a few years.

However, they don’t have experience in the crypto space, they have startup experience, creating and bringing software to the market.

The only issue here is that there are only three team members and building a great team is crucial for the success of ByteBet. Would be great to see some advisors on board as well.

ICO

ByteBet intends to publish maximum 10 million, non-mineable BBET tokens. The trick here is that each token will be generated according the amount of founds they receive but not more than 5 million tokens.

During the crowdsale, maximum 5 million tokens can be generated and the final token supply will be determined by doubling the amount of tokens generated in the token sale.

Here is an example from ByteBet’s whitepaper:

Let’s say during the two token sale rounds ByteBet successfully sells 3 million BBET tokens. That means the total supply will be 3 million multiplied by 2, which is 6 million.

This ICO is pretty fair since BBET token holders won’t be diluted. If they don’t reach the maximum founding goal then you have the chance to get a portion form a promising project with a really low token supply.

ByteBet’s ICO is divided into two stages.

1. Stage: Pre-sale

Start date: November 21, 2017
End date: November 29, 2017
Minimum target: 150 ETH
Maximum: 600 ETH
Discount: 30%

2. Stage: Main round

Start date: January/February 2018
End date: ???
Minimum target: 3000 ETH
Maximum target: 50000 ETH

Big plus: they’re not trying to raise millions in the first round but rather have an incremental approach, raising the necessary amount first to kick-start the project and a larger amount later to scale it up.

Conclusion

Scam alert? No
Roadmap is realistic? Yes, but definitely requires a larger team
Market potential: 9/10
Business model: 8/10
Team: 6/10 - They're working on getting advisors and new team members.
Token utility 7/10
Community: 3/10 - Really small community
Whitepaper: 9/10

What ICO should I analyse next? Let me know in the comments below.