Etheremon, a new Pokemon version of Cryptokitties entered the market on Wednesday with new promises to game enthusiasts. Running on the Ethereum network, the developers claim that the application is fully decentralized, and it simulates a world occupied by Etheremon (Ether monsters), where you can capture and evolve an Etheremon in order to defeat others. And you can earn while you’re at it!
In its current state the game is basic, because all one needs to do is buy monsters using Ether and use them to do battle or trade. As of now though, you can’t trade the Etheremon – you can just keep them and earn a small amount each time a person buys the same kind of Etheremon. The prices range from 0.37 ETH – 1.2 ETH.
But There’s A Problem…The Application Could Be Running More Like a Ponzi Scheme
Even with the goodies this game promises, there are growing concerns that it could be a Ponzi scheme out to defraud players. The idea of a Ponzi is that early adopters keep on earning money from those joining, and once signups stop coming, it collapses.
And there’s more. Some users claim that the game isn’t fully decentralized after all, with one saying that it’s meant to rip off the crypto community. The application claims that no one can have control over the Etheremon world, either by taking them away or cheating. The smart contract, according to one user, shows a public function that allows access by the owner, meaning that they can easily transfer monsters from one address to another. Furthermore, the owner could also withdraw all funds from the contract.
The fact that there’s no restriction on Etheremon and no proof of digital asset by players makes it a Ponzi scheme, and when it finally crashes, many players will lose their funds.
Players Aren’t Bothered, Though
Even with these accusations, it looks like some players aren’t bothered, with many getting in on the action already. According to one of the smart contracts of the game, it accounts for about 2.82% of Ethereum network transactions.
Do you think this game represents a Ponzi scheme only meant to benefit a few people and the owners? Would you take a chance if you are a game enthusiast? Let’s hear your thoughts in the comments below.