Gambit : Proof of Burn, Negative Inflation = Rising Price?
Recently, I decided that I should document my research regarding low marketcap altcoins. Disclaimer: This research does not reflect my investments, and I'm not recommending any sort of investment either.
Gambit $GAM
Gambit, like Signatum, is another coin I came across on Bitcointalk.org. This one is quite a veteran in the low marketcap coins as it was released in May, 2015. Gambit is a coin that was designed specifically for the trading community and over the years it has racked up quite a reputation in terms of its community size as well as number of revenue streams. What makes Gambit unique is that it operates primarily almost like an exclusive club for traders.
Burning coins, revenue stream model
The way Gambit works is that a portion of profits generated through revenue streams (whether they be affiliate links, or trading groups) are then used to buy GAM on exchanges and the bought coins are used to pay for better GAM trading analysis tools, and to further progress the development of the coin. This bought GAM, is subsequently burned, i.e. it is never put back into circulation. In this way Gambit claims to be the first coin with a negative inflation rate. Here are the statistics from their official Bitcointalk thread as of this post:
Starting Supply: 2,500,000 GAM
Tokens Burned: 1,383,606 GAM
Supply Remaining: 1,182,752
Starting Price in USD: $0.023 per GAM
Current Price in USD: $3.565 per GAM
What are the different revenue streams that Gambit has?
Gambit has a 5 pronged revenue stream model which can be broken down into the following:
- Trading classroom: Learn from industry experts regarding trading
- Proprietary trading view indicators: Claims to take the "guesswork out of trading."
- Private trading group: Price alerts, hang out with crypto legends
- Affiliate revenue: Pretty standard model with affiliate links as incentives for new members to join
- Exclusive ICO discounts: Claims to offer up to 60% off on select ICOs
The last revenue stream model I found quite interesting, and if anyone in the Gambit community has taken up this offer I would certainly like to know their experience!
The cost to join the group is a one-time donation of 0.75 BTC (or equivalent in GAM)
Interestingly to join the community it requires a one time payment of 0.75 BTC, which I found to be a lot, but if they certainly deliver on their features it may be worth it but I find this to be highly speculative. The entry fee according to the thread goes directly to benefiting the Gambit community and if the fee is paid in GAM then the coins are queued up for burning. Personally I have some problems with this because of the following scenario: imagine that you put up the 0.75 BTC membership fee and it so happens that you don't gain any positive benefit from the community features you kind of would feel a little ripped off. I would be interested to hear from someone who is inside the community on this matter.
GitHub source last commit was on July 16, 2015
Gambit does have source code up on GitHub but the last commit was from July 16, 2015. Looks like they haven't been updating the source for awhile, this could be a sign that they are at a stage in development where they don't need to add any fixes or that they are developing the rest of the coin privately. Either way I personally find this as a red flag.
Volume, Marketcap, Exchanges
Gambit is currently only on one exchange which is Bittrex, for a coin that's been around for 2 years you'd expect it to be on more exchanges. At the time of this writing Gambit has a marketcap of $7,798,734 (2,847 BTC) and a 24h volume of a meager $4,725 (1.73 BTC).
No website, no technical whitepaper
Although Gambit has a thread on Bitcointalk.org they lack a website and a technical whitepaper, I also was unable to find too much information regarding the team besides the fact that user @CollinCrypto a veteran in the space is the founder, you can view his Twitter profile here.
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