The crypto gambling industry has a rapidly growing giant that largely flies under the radar – Rollbit. Despite being only the 79th ranked project by market cap, Rollbit generates the 2nd highest revenue in crypto, trailing only behind Ethereum. Even more impressively, usage and revenues have expanded from 10% to 30% month-over-month. This article takes a deep dive into Rollbit and why it may be one of crypto’s most overlooked opportunities.
Rollbit has three core products:
- Online Casino – A full suite of classic casino games allowing crypto deposits/withdrawals. Includes slots, blackjack, roulette, and more.
- Degen Perps – Up to 2000x leverage trading on various crypto assets. Caters to risk-tolerant traders seeking adrenaline-filled action.
- Sportsbook – Betting lines on all major sports and matches.
Additional products like a centralized exchange AMM are in development as Rollbit expands its ecosystem into a one-stop hub for crypto gambling.
A Business Built on Real Adoption
Unlike many crypto projects focused on token speculation, Rollbit targeted real world usage first. They ran aggressive marketing campaigns promoting Rollbit’s platforms themselves rather than the $RLB token. This strategy attracted droves of active, paying users to their products. Rollbit now processes over $1 million in daily revenue, an impressive achievement cementing their position among crypto’s largest revenue generators.
With $500 million+ in estimated annual revenue, the majority unrelated to speculative DeFi activity, Rollbit has a credible claim as the first major business native to crypto. The proven market fit across its offerings provides a solid foundation for continued growth.
The $RLB token plays a crucial role in Rollbit’s ecosystem by offering various utility functions and value capture mechanisms for protocol supporters:
- Daily Lottery – The lottery allows $RLB holders to use their $RLB as entry tickets within a lottery with cash prizes. Each round’s prize pool will come from a portion of Rollbit’s casino profits.
- Casino Rakeback: $RLB holders receive rakeback on casino profits proportional to their stake.
- Trading Fee Discounts: Holders can use $RLB to reduce trading fees on Degen Perps trades.
- Hourly Buybacks: Rollbit uses its revenues to buy back and burn $RLB tokens every hour, leading to a deflationary effect.
Rollbit reinvests a portion of revenues from each business line into buying back and burning $RLB tokens.
|% of revenue
More than 36% of the total token supply has been bought back and burned, demonstrating a commitment to reducing token circulation and enhancing scarcity, a concept that has drawn comparisons to the successful tokenomics of Binance Coin ($BNB) and DEXTools ($DEXT), two of the most deflationary tokens in circulation.
Bull Case and Investment Outlook
Rollbit’s current offerings still have ample room for user growth both within crypto and beyond:
- Degen Perps revenue could easily 10-20x in a renewed bull market as trading volumes skyrocket. Their niche has proven product-market fit.
- The sportsbook remains largely untapped outside of crypto users. Mainstream adoption would dwarf their current sports betting revenues.
If Rollbit captured just 2-3% of the $300 billion global gambling market, it would represent a 10x increase over their current revenues. With continued execution, this is achievable.
Focusing specifically on revenues flowing into $RLB via buybacks provides a snapshot of earnings power. For the following Price/Earnings valuation we have considered only the revenue that is used to buy-back and burn $RLB.
If we value Rollbit at a 100x P/E typical of hyper growth companies, it would reach:
Valuation: $5.1 billion (over 8x its current market cap)
Price per $RLB: $1.60
Even at a more moderate 50x P/E, Rollbit would see: 324%+ upside to $0.80 per $RLB.
This indicates substantial upside potential for $RLB as revenues continue surging.
Rollbit’s risk/reward profile skews positively for long-term investors. While risks around regulation and competition persist, Rollbit maintains a commanding position with its first-mover advantage and relentless execution.
As the team continues releasing data, our analysis will further crystallize Rollbit’s immense value and the upside opportunities for $RLB holders. Even based on initial data, Rollbit’s breakthrough growth is undeniable. $RLB offers asymmetric exposure to this accelerating crypto gambling juggernaut.
Rollbit executed a brilliant crypto growth playbook: drive product adoption first and let the token follow. With revenues comparable to Ethereum, real business lines secured, and products resonating with users, Rollbit is quietly building the first mega-business native to crypto.
As adoption ramps towards critical mass, $RLB offers asymmetric exposure to this accelerating growth story that the market has yet to fully price in. Rollbit has a commanding head start that won’t be easy to replicate by late entrants to the crypto gambling space.
Article written by Pierandrea Cecconi (@PierArmy), Project Development Blockchain Army