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What Is EtherRacing?

It seems there will be a major influx of new Ethereum-based investment opportunities/semi-Ponzi schemes very soon. Following CryptoKitties and EtherTanks, we now have a new browser-based game called EtherRacing. All three concepts are virtually the same, although the gamification element is certainly a nice touch. Whether or not people will keep investing in projects like these remains to be determined, though. After all, people will quickly lose interest as more of these “opportunities” arise.

EtherRacing Sells Virtual Racing Cars for Ether

People who are familiar with the concept of CryptoKitties will immediately understand how EtherRacing works. The concept is very similar, as interested parties can purchase cheap cars in exchange for Ether. When someone buys the exact same car as you did, you will receive a small amount of money from their purchase. This is very similar to the Ethertanks concept, although it is unclear if these two projects are run by the same individuals.

One thing that becomes rather obvious as more of these projects emerge is that they all border on being Ponzi schemes. Truth be told, Ponzi schemes are nothing new in the world of Ethereum and smart contracts. In fact, there are plenty of gambling contracts which clearly state they are Ponzis and that investors may lose money if fresh capital stops coming in. EtherRacing doesn’t state this on its website, even though people will always consider it to be on the shadier end of the spectrum.

As is usually the case with projects like these, those who invest early on will stand to make a quick profit. Some people who bought in when the project first launched made a profit within twenty minutes. Such a business model is unsustainable in the long run, though, as people will eventually move away from this project and look for the next thing to invest in. It’s a welcome change from initial coin offerings, but it bears even more risk in terms of potentially losing your money.

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EtherRacing’s website lists the various models of cars that can be bought, along with their top speed, acceleration, braking, grip, and referral profit statistics. It is evident there is some good money to be made in this regard, although only if you manage to convince other people to buy the same car as you did. For now, these cars can’t be traded or raced, although those functions will be added at a later time.

As it stands now, the EtherRacing marketplace is under development. If everything goes according to plan, it will go live on January 14. This is the exact same date as when the EtherTanks marketplace will go live, which further hints at a possible link between the two projects. It will be interesting to see if this marketplace can gain any noteworthy traction in the coming weeks, though. Rest assured people will be looking to cash out as soon as possible, especially if they haven’t made a profit from referrals.

The racing aspect of EtherRacing will not go live until further notice. The tool is currently in private beta, although not too many details have been made public about that just yet. It will be entirely browser-based and powered by the Unity engine. Users who win races will earn Ether, but no further details have been announced at this time. Rest assured there will be some interest in this particular aspect of EtherRacing. Whether or not a lot of people will lose money by buying these virtual cars has yet to be determined.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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