In an unfortunate turn of events, Hive account@magicdice suddenly shut their shop today and ran away with all liquid funds in their wallet.

Hive account@investingpennies and Hive account@themarkymark first broke this news today. Although their operations were quite shady and several red flags were present but exit scam wasn't quite expected by me. I could see that their intentions weren't fair and business practices were questionable but I felt that they just want to claim unfair share of profits from the operations. But I was wrong. They actually ran away with all the funds!

How did people lose in it?

Players lost all their MAGIC tokens that used to earn 40% share of platform profits. All unclaimed profits and future profits are gone now. Many have delegated their SP in lieu of MAGIC tokens but those tokens are no where now. Many players wagered and borne losses as they were earning MAGIC tokens in proportion to their wagering amount. So they consider these losses as an investment for earning future dividends.

Aside that Marky reports:

For the last few weeks, they stopped paying dividends to a few of the larger players who stopped playing a while ago.

The MAGIC tokens were not tradeable yet. So all these tokens were merely ledger entries.

Why did they scammed!

Magic Dice was the first gambling dapp on Steem blockchain and was hugely successful with thousands of players and hundreds of thousands of STEEM wagered on a daily basis. It was earning profits almost daily.

So the question remains, why would they exit such a successful business?

Apparently, it looks like all these wagering volume and profit reports were fake and manipulated. They were running some bots through their own alt accounts to create artificial volume to lure others and pocketing most of the MAGIC tokens and dividends in the process.

They were either not satisfied with whatever little profit they were making or their cost of running these operations was too high. But it doesn't appear to me like that.

If they were incurring unexpectedly high losses, they could have reduced the maximum winning limit per bet or discontinued one of the over and under-rolling tool. There were several tools at their disposal for cost reduction and seeking additional funding. They can also raise additional funds through diluting their 60% share the way Steem Bet is doing.

Apparently, it wasn't the case. They just wanted huge money at one go. They weren't happy with the golden goose laying only one gold egg daily. So they killed the golden goose and ran away with it!

Careful! They can strike back!

It appears to me that they are confident that they can pull up these type of businesses again easily. Now they have all the codes and experience. They just need to change the front-end design and start the business with a new name and scam for some more!

People are saying that the person behind Magic Dice was the one who ran dMania earlier viz. Hive account@zombee. So yes, he can keep scamming for easy money under new garb every time.

That's why I like Hive account@epicdice

_{Image credit: @@Hive account@blocksensei of Epic Dice}

We need to be careful when we choose a dapp. I don't know why almost all of the gambling sites seems to be run by anonymous teams. There is no practice of writing an About Us or Our Team page on gambling sites. Although blockchain gambling dapps are quite transparent in their coding and some are even open-sourced. But teams behind them like to remain anonymous.

However, some gambling dapps on EOS have acquired legitimate gambling / casino licenses but most teams' and companies' credentials are difficult to verify. So in a way, this scam is good if it can bring some change in bringing transparency for the teams behind gambling dapps.

To my knowledge, Hive account@epicdice don't claim to have any government gambling license or is regulated. But it's the most transparent, fair and issue-less platform. The team is very responsive and within reach if you have any issue or suggestions. They issued SE tradeable tokens from the day 1. So you need not lock your money in tokens indefinitely. Dividend pool, house-edge, team holding everything is transparent and verifiable.

Even the rolled dice number is provably random and unpredictable by anyone. This is the first dice game using only the random Steem transaction ID from every bet as the source of input for random number generation between 1 to 100. Since a unique transaction ID is generated for every Steem transaction, no one is able to predict the next transaction ID before the block is processed. Unlike other gambling dapps, no client or server seed is involved. So fairness can be easily proved.

Aside that Hive account@epicdice updates its dividend pool in real time. Opening bankroll and current account balance can be checked on Steem blockchain in their wallet. So profit earned is also verifiable. Dividend calculation and distribution is also automatically done every day through smart contract. No manual claiming is required. Same is applicable for referral commission and leaderboard rewards. Hence there is no scope for cheating in daily operations.

The platform do have some issues as it allows for smaller bet size (upto maximum 100 STEEM winning amount per bet) and don't have roll-over option on its interface but that can be understood as it's very new platform. Only about 3% of its 8 billion EPS tokens are in circulation at the moment. So in my opinion, it has tremendous scope at this stage.

I'm active on this platform for about a month now and I'm the largest token holder after the team. This I'm disclosing to let you know that I'm not affiliated to their team but I'm heavily invested in it.

Want some free tokens and STEEM?

If you want to try EpicDice, I can give you some gift to use my referral. Here's what I can offer:

I'll give you minimum 1000 to max 10000 EPC (calculated at random) to all new users using my referral link. And for every 5000 STEEM/SBD wagered, I'll give you 10 STEEM out of my referral rewards.

_{Please note that, I may need to confirm exact wagered amount by you from EpicDice team and it may take some time to arrive at what I can offer as currently its interface doesn't provide me this data. For existing players, I'll offer 10 STEEM per 5000 wagered STEEM/SBD. But please note that my referral gets effective one day later.}

Tagging all MagicDice delegators here

This is just to inform you that Hive account@magicdice is no more active on Steem and you are requested to undelegate your precious Steem Power to Hive account@magicdice. In case, you have already undelegated then please excuse this tag by me.

I can see some of you are still sending transfers to MagicDice with no result. Please stop doing that. In case you want to play dice with your STEEM / SBD, I can vouch for the new Epic Dice platform. Do try it with my referral link. I'm offering free EPC tokens and STEEM for wagering through my referral link:

My EpicDice referal link here

Epic dice is gonna be EPIC!!!!

What do you think compelled Magic Dice to make an exit scam?
Any opinion about Epic Dice?

What Compelled @MagicDice to Exit Scam from Steem? (My FREE EPC Token Offer for Players Inside)