In the past week, users of the decentralized block chain game FOMO3D and PoWH3D has skyrocketed. They are currently the
#1 & #2 gas burners on the Ethereum network (excluding exchanges like Idex/Forkdelta/etc).
So what exactly is
FOMO3D and
PoWH3D?
Fomo3D is a blockchain game that is meant to mock common Ponzi's such as Bitconnect. They essentially advertise themselves as the "transparent ponzi". Transparent because the game is based on an immutable smart contract, which means that you can view the source code and know exactly what will happen, while the developers cannot just change things on a whim (unlike Bitconnect which was their own, closed-source coin). As of right now there is only one game mode (Fomo Long), with another game mode (Fomo Short) being released next week. The game is basically one big lottery with a couple added twists, with users purchasing keys with ETH. The price of a key increases with every subsequent key purchase, and each key purchase resets the "timer" of 24 hours. If the timer ever runs out, the user who bought the last key wins 50% of the pot, with the other split up between other keyholders, PoWH3D holders, or the next round depending on which of the 4 "teams" you contributed your key to. With a current pot of 21,000 ETH ($9.5M), being the last key holder would net you close to 5 million dollars. The issue is that with people constantly buying keys (and in turn, resetting the timer), the game will not be ending anytime in the foreseeable future.
So why do people buy keys now when they definitely won't be winning the jackpot with it? The answer is dividends. Every time someone purchases a key, you get a % of the purchase based on how many keys you own. This means that those who got in early are making thousands of % of ROI off dividends alone. Again, this is sort of like how a Ponzi normally operates, with the difference being that you know exactly what will happen because the game is based on an immutable smart contract. You can view the game statistics/prizepool/dividends or buy keys at their website,
exitscam.me (notice the name, which was absolutely intentional)
PoWH3D is basically a token that is closely related to FOMO3D. The price of PoWH3D increases by a set amount of ETH every time someone buys, and decreases by the same set amount every time someone sells. This means the token has no set circulation and can be inflationary or deflationary depending on if people are buying or selling. Here's the twist- When you buy and sell PoWH3D you are taxed 10%. This tax is then paid to other PoWH3D holders as dividends. This means that the more you hold and the longer you hold for, the more in dividends you are paid. As more people buy, the price of PoWH3D increases, and so do you dividends as more ETH is contributed.
In addition, a portion of the key sales from FOMO3D goes to pay/reward PoWH3D holders as a "bonus dividend". This means many people are profiting immensely by just holding PoWH3D. Basically, as volume increases on both FOMO3D and PoWH3D, so do your dividends. The only way to buy/sell PoWH3D is by sending utilizing their smart contract, which you can do at the
official exchange here.
Personal thoughts (these are my views only and NOT financial advice):
Personally I have NOT invested in FOMO3D Long because I feel like it's too late and the dividends aren't worth it. I will probably buy a couple keys in FOMO3D Short when it comes out as I can get in much earlier (which is the key to maximizing profits). However, I have invested a couple ETH into PoWH3D as the dividends are actually pretty decent, I am able to sell it immediately (unlike the FOMO3D keys), and I get dividends from both PoWH3D transactions AND FOMO3D key purchases. This entire thing is one big game of psychology- if you believe that there will be more people buying keys/PoWH3D, you can make a good profit. I find this all extremely interesting as this is an example of the power of Dapps and smart contracts.
