Have you known a Coin that enables credit system for Gambling? This is about it.Dragon Coin is a credit system for gamblers and will be the only coin accepted by the Macau Junkets. First up, a Junket is an independent gaming house. In Vegas, there is only one entity, the hotel or the casino, which controls all of the games. In Macau, centralized gaming houses are banned, meaning that smaller independent gaming houses, aka Junkets, are the ones who facilitate the games. More so, they providing “staking,” or taking the other side of bets, for high rollers who come to the casino. If I want to bet $1 million, someone needs to take the other side of the bet in order for it to occur. This is the service the junkets provide. Macau, an hour drive from Hong Kong currently surpass Las Vegas as the world’s leading gambling revenue, elite gamers from cross sections of different part of the globe visit every week of every year staking no less than a million dollars per individual for one night.
How Dose This Work?
Millions of dollars are arranged for the availability of a winning stake by junkets hosting VIP games while accepting the exuberant cost of making such necessary arrangement and the equally high fees in the repatriation of a VIP winning. The current cost of runing is a minimum of 5%, while the stake winner loses between 5% to 7% for costs related to their winnings. A turn over of several VIP gamers for one night can amass to US$250 million or more, after stake money and repatriation of winning cost has been dealt with. Dragon inc. will leverage the Ethereum blockchain technology to enhance reduction in exchange and repatriation fees, thus reducing billions in commissions and integrate cryptocurrency into the ‘junket’ casino experience. The Dragon financial eco-system will improve profitability and efficiency of partnered junkets by providing access to the Dragon community of elite, committed and regular gamers.
Dragon Coin Platform
Dragons solution is powered by the platform token ‘Dragon coin'(DRG) which can be easily exchanged for the Dragon chips (DGC) for staking a game. DRG tokens will bridge the gap between junket and user experience. Dragon has partnered with four junket operators in Macau; some of which are listed in the Hong Kong stock exchange, these intristic partnerships open Dragon to thousands of elite gamers, staking money in or settling repatriations of the winning cost with DRG for a cost-effective method. The platform community will not be limited to elite gamers alone neither will it be limited to Macau but plans to be established within many casinos all over the world, ready to benefit from the ‘Dragon brand’.
The Dragon brand aims to be operational as a licensed junket by 2018. The Dragon brand will initiate the ‘proof of concept’ that will enable the underpin of a global roll out and growth of the Dragon Community. The platform will establish its ATMs that will facilitate users need for fiat currency or ease of exchange. Every member of the Dragon community will be issued a Dragon debit card on the on either a Visa or MasterCard. Dragon plans to, mid-way through 2018, have a functioning network base for its ATMs machines and presented in all affiliated junkets and casinos. Dragon Inc. has already raise over US$260 million from private investors and hope to execute a token sale estimated to be US$500 million, becoming the world’s largest token sale ever conducted. The Dragon will launch the project with its first junket in the beginning of January, 2018 and complete the ‘Dragon Pearl’ hotel casino by the year 2020.
Currently, if a rich Thai businessman like Dragon CEO Chris Ahmad wanted to take $1 million to gamble with in Macau, there would be several issues. Cross border transfers of large sums of money into Macau are not so simple as going to a bank and setting up a wire. Instead, Chris would use a credit providing service in Thailand to front the money for him in Macau. He wires his cash to this company and when he arrives to Macau, a similar amount of funds are made available when he arrives. The problem though, is that the fees for this credit service are 5% each way. So that $1 mil is only 950k by the time it arrives in Macau and close to 900k when it comes back to Thai after the trip is over. The credit providers make a killing with this business model. According to the numbers “total Gross Gaming Revenue (GRR) for Macau … can be estimated to be between $2.49 billion to $3.3 billion USD monthly,” and “VIP gaming accounts for 50% to 57% of the GRR. This makes VIP gaming revenue between $1.42billion to $5.79billion USD monthly.” In comparison, Vegas accounts for only 900 million at best. If this much capital is coming into Macau every month, think of how much the middlemen are making and, of greater importance, how much misallocated capital the casinos are losing.
One thing the blockchain does really well is disintermediation, which is the process of cutting out middlemen. Dragon Coin will allow VIP clients to directly send their DRG tokens to the junket, paying only .5%, a tenth of the cost. Based on the above data, if the entirety of Macau was to switch to Dragon for credit provision, they would be able to increase their revenue by 500 mil to 1 billion monthly.
Coin Issue
The hard cap for Dragon Coin is 420 million, which could be seen as a lot in this environment. But in reality, as Dragon is a new junket, they need funds to be able to provide the credit service. For every dollar they raise, they will be able to leverage it up to 2.5 times. Thus, if they raise 420 mil, they can lend out 1.05 billion to gamblers. The more the raise, the more they can use for daily operations. 83.3% of the funds raised will be used for this purpose. Operational costs will only be around 35 million in the first year.
Triad Connections
When Dragon Coin launched, an ex-con triad gang boss was prominently featured during the signing ceremony. I actually got to meet the guy, Broken Tooth, who served 14 years in prison for illegal gambling, loan-sharking, criminal association, and the attempted murder of Macau’s chief of police. He was pretty open about the casino’s and said that it was naïve to think any casino was completely “white.” Living in Russia it’s not hard to see the truth in this. But for a lot of Westerners, this could be hard to digest. Chris later denied any connection between Broken Tooth and Dragon, stating that “He came to the event introduced by someone else as a prominent figure in Macau… He is not involved in Dragon and he is not financing Dragon in any way.”
Dragon Coin(DRG)-Conclusion
As an advisor to the project, Dragon has come a long way from where it was 2 months ago. I can say that Chris and the rest of the team are committed to providing a real solution to the issues I listed above. They have listened to the blockchain community and are working to ensure that their system is fully legal in the eyes of the regulators. I hate to use the word disruption, but these credit provision services are done right now with SMS. A switch to crypto would be a lightspeed boost forward. Plus, it would these transactions onto a permanent record where a full record of funds transferred could be audited by third parties.
Official Links for More Details
Official Website:http://drgtoken.io
Whitepaper:https://s3.amazonaws.com/drg-token/Whitepaper-Dragon.pdf
Facebook:https://www.facebook.com/dragoncoin.online
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