Unstoppable Scams? Ethereum's Gambling Problem Is Only Getting Worse

Ethereum has a gambling problem. Since July, products resembling Ponzi schemes, a fraudulent form of investment promising high returns for little cost, have topped the charts among decentralized applications (dapps) running on the world’s second-largest blockchain, outpacing even the popular CryptoKitties. But if user counts and transaction volumes observed on these applications are high, so too is the level of concern over the risks consumers face when using them. Already mounting are warning cries from technologists who aren’t exactly known for their risk reticence, a group that includes gambling dapp developers themselves. Such was the case for Team JUST, the group of anonymous developers behind the infamous gambling dapp FOMO 3D, who warned last week that what looked to be a near identical copy of its game was eating up one-third of the network’s total computational power, raising over $7 million in ETH within the span of seven days. Team JUST has gone on

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