FunFair (FUN) gains 183% as the blockchain-based gaming industry grows

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Many DApps and blockchain-based games are designed with casino-style and RPG features that allow players to use cryptocurrency for gambling. 

FunFair is essentially a white-label, turnkey blockchain-based casino and the platform aims to provide services with zero set-up fees and no monthly minimums.

The platform’s native FUN token is the fuel behind every function on the FunFair platform and players need to use it to place bets, and winnings are also paid out in the same way. FUN tokens are used to compensate game developers and pay for fees and services to affiliates and within the game.

Since Jan. 28, the token has rallied by 183% and the move appears to be backed by the growth in users, amount wagered on the platform, and on-chain transfer volume.

FunFair (FUN) token / USDT at Binance. Source: TradingView

It is worth noting that FunFair itself is not a casino. Hence it only holds a testnet version (showcase) on their website. Nevertheless, they provide links to two real use cases which are both powered by its technology.

In June 2017, the ICO raised $26 million for 21.3% of all FUN tokens. Founders and advisors kept 14.4%, while the FunFair Foundation retained the remaining 64.3%. Since then, the Foundation decided has buned more than 6 billion tokens, reducing the max supply to 11 billion.

The team aims to offer transparency to prevent cheating from casino operators and players alike. By using peer-to-peer technology and smart contracts, FunFair can eliminate the usual required trusted third party.

The platform hosts classic games like virtual slot machines and Blackjack and FanFair Technologies and third parties are actively developing new games. The system is entirely browser-based using HTML5 and WebGL standards to deliver a smooth mobile experience.

Multiplayer games and second layer scaling

In October 2020 FunFair created a new business unit to explore multiplayer games and a distribution agreement was signed with EveryMatrix’s remote gaming server which is used by 600 casino brands globally. Shamrock Treasures was the first game launched using this technology and it is currently avaliable to third parties and approved by regulators.

FunFair has also integrated second layer solutions to reduce gas fees and its FunFair Wallet already supports xDAI. The L2 option will also serve as the base for the upcoming multiplayer games launch.

Daily active users soar

According to the FunFair blog, participation (gambling) has increased by 255% compared to the precious quarter, and the number of players grew by 140%.

Furthermore, several payment options such as Uniswap, Changelly, and Moonpay have been integrated into the FunFair Wallet.

On-chain data shows that activity started to pick up just ahead of the new year, surpassing 1,000 daily active addresses, while transfers recently reached $10 million.

FUN daily transfers and unique addresses. Source: etherscan.io

The only feature that seems to be a possible game-changer is the integration of MetaMask but FunFair’s roadmap does not show an exact date for this.

Meanwhile, social activity metrics from TheTie shows that FunFair’s recent growth and new product lines appear correlated with the token’s price appreciation.

FunFair (FUN) Twitter activity vs. price (USD). Source: TheTie

Blockchain-based gaming is a vast market and multiple analysts have said that the sector could develop into a multi-billion dollar market in the next few years.

FunFair’s blockchain transparency and its white label technology will likely be attractive features to game designers and these features alone seem to be the primary substance backing the recent rally.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.