In the ever-evolving world of online casinos, crypto casinos have become the latest trend. But did you know there’s more? Beyond playing your favorite casino games using Bitcoin or Ethereum, there’s still so much more you can get from a crypto casino.
Most players aren’t aware of this, but the secret lies in one word—tokenization. You can earn money while you play! Even move from being a regular player to a micro investor and a “casino owner.” That’s the power of tokenization! So what does this somehow complex crypto term mean?
Tokenization is the process of converting an asset or anything of value into a digital currency that you can use in a platform; in this case, crypto casinos. Each casino will have tokens that players can buy, trade, and stake with on their platform.
Play To Earn With Tokens
Before the dawn of crypto casinos, online gaming sites were king. But, they didn’t have anything new to offer. The usual free spins and predictable loyalty programs had become redundant. However, playing at a top online casino would at least spice up your experience with unique bonuses and the latest games.
Enter crypto casinos, which revolutionized gaming through currencies such as Bitcoin, Ripple, Tron, and Ethereum. Players could now transact at lightning speeds and enjoy provably fair games. A major upgrade from how things were before. But, there was still more to exploit from the blockchain technology and crypto casinos like TrustDice, Bc. Game and Fairspin came up with their gaming tokens.
To earn these tokens, all you have to do is play games, claim bonuses, or make deposits. These tokens are the casino’s currency which you can use to stake and invest in the casino in return for profits.
How Does It All Work?
Let’s say you open an account with any of the casinos we’ve mentioned above and you start playing the various games. As you deposit and play, you’ll earn tokens that have a specific value attached to them. The more tokens you have, the more “currency” you have, which you can use for several reasons.
Stake
The stake option gives you the chance to earn dividends from the casino’s profits. Players can stake part of their tokens in the casino and essentially become shareholders of the casino. In the long run, you’ll find that players “own the casino” through the stake they have. After some time, the casino rewards its investors with profits from their stake. Some up to a 10% annual return.
Hold
Casino tokens are similar to cryptocurrencies, meaning they can appreciate with time. Once you earn the tokens, you can choose to hold onto them and be patient as they increase in value. After a while, you can decide to sell them at a profit.
Trade
Different casinos have varying policies regarding their tokens. While some tokens can only be used in-house, others are tied to stable assets such as USD. So, after playing and earning tokens, you can trade them in certain exchanges for a different currency.
Benefits and Challenges of Tokenization
Crypto casinos with such a business model have been noted to have a high retention rate because of the “ownership” aspect of the casino. Players feel more confident and comfortable playing at such casinos because the scare of a house advantage is non-existent.
Through a decentralized platform, casinos using tokens are more secure and transparent. All transactions are uploaded on a public ledger for all to see. The play-to-earn concept provides much appeal to players as they can get extra income from their regular playing time.
On the other hand, power can easily be concentrated if a few players end up having most of the tokens. Similarly to how shares in a company are divided, and some people have more than others.
Regulation is also a big concern and you won’t find many token-based crypto casinos licensed. Since it’s a new thing, most authorities are slowly adapting to it and are cautious about approving such casinos. The Malta Gaming Authority is one of the few jurisdictions giving token-based casinos the green light.
Lastly, tokenization in crypto casinos remains a subject not understood by many, even those in the tech community. Continuous education is needed for the different players in the industry if we are to leverage the full potential of crypto tokens in casinos.
