December 1, 2020

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The first loss-free lottery received an investment of $ 1 million

2 min read
The first loss-free lottery received an investment of $ 1 million

The concept of a non-loser lottery, promoted by PoolTogether, has received significant support over the past few months. With a $ 1 million investment and USDC support, PoolTogether aims to increase popularity.

 

Lottery tickets for cryptocurrency

 

Instead of depositing stablecoin DAI on the money markets, users can deposit these funds on PoolTogether, where they exchange them for lottery tickets. With these, they can win more than $ 1,000 each week. If it fails, the deposited amount will be returned to the wallet.

 

It can be so easy that only a small stake will win big profits. The advantage of a blockchain-based lottery is that the deposit is always refunded. The current PoolTogether fund has approximately one million dollars of DAI cryptocurrency, which comes from sponsored funds.

 

The fund thus provides liquidity and does not participate in the lottery, increasing the chances of winning small DAI owners, who would have a much lower chance of winning. The user’s chances of winning are increased if they buy more lottery tickets.

 

Although the idea of ​​lottery without loss is very interesting, it has met with considerable criticism for several reasons.

 

PoolTogether has been criticized mainly by the Ethereum community for allegedly wasting productive capital. Others despise a closed protocol that is not visible to everyone.

 

The biggest criticism, however, was about PoolTogether’s smart contracts, which can be updated by the team, which can result in their being changed and subsequently withdrawing funds.

 

Summary

 

The loss-free lottery, which can turn small deposits into relatively high amounts, sounds very tempting, resulting in increasing popularity. The question is whether there will be abuse or theft of the fund, because it is a closed system that is far from decentralized. However, despite this risk, it is an interesting project that could popularize smart contracts and blockchain among the wider public, as people like betting and lotteries and like to win.

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