Rollbit Market Cap Hits A Staggering $505M, Generating Over $41M In Fee Revenue

Rollbit RLB/USD, a composite platform of an online casino and crypto futures exchange, boasts year-to-date (YTD) revenue of $355 million.

The company also touts a 70-times YTD return for its RLB token, according to a research report by Alpha Sigma Capital.

This performance places it third in revenue generation among all crypto protocols/platforms, trailing only Uniswap UNI/USD ($543 million) and Lido LDO/USD ($529 million) in terms of annualized fees.

Rollbit, operational since 2020, saw a dramatic uptake in platform usage in 2023. The platform's ease of use and high revenue generation are notable.

Over the past 30 days, Rollbit has generated $41.7 million in fee revenue, translating to an annualized rate of $508 million.

Rollbit's revenue sources are diverse, with the casino contributing 69%, crypto futures 18%, and the sportsbook 13%. The company's market capitalization stands at $505 million, in stark contrast to the $1.6 billion for Lido and $3.2 billion for Uniswap.

Further bolstering its financial position is Rollbit's token buyback program.

Funded by revenues from various platform offerings, this program uses 10% of casino revenue, 20% of sportsbook revenue, and 30% of futures revenue for daily open-market purchases of the RLB token on Uniswap.

These tokens are then permanently removed from circulation.

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This buy-and-burn approach, akin to share buybacks in equity markets, has already burned more than 37% of the outstanding RLB supply.

On a price-to-sales ratio, Rollbit stands at 0.99x, favorably compared with the average of 2.31-times for traditional competitors in the gaming sector, the report further states.

If RLB re-prices to the market average P/S, it could see a 133% increase in token price.

Additionally, Rollbit's revenues have been growing rapidly, with October's month-to-date figures showing a 19% increase over September, outpacing its competitors.

However, potential investors should be aware of certain risks.

The platform's murky ownership and licensing status, with co-founders maintaining anonymity and the company licensed in Curaçao, might pose investment risks.

The platform's restriction in major markets like the U.S. and parts of the EU, and the potential regulatory risks from these geoblock bypasses, are also noteworthy.

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