Poker: Vaudoise Startup at Biggest Tables
- The Swiss startup Smardex is making waves in the high-stakes world of professional poker, leveraging the growing intersection between cryptocurrency and the game.
- Smardex, a decentralized finance company active as 2021, is betting big on the crossover between cryptocurrency and gambling.
- The company also invests in content creation, employing a four-person communications team to produce YouTube videos, including "DeFi the Norm," which offers behind-the-scenes glimpses of the tournaments.
Smardex Bets on Crypto-Poker Convergence in High-Stakes Tournaments
Table of Contents
The Swiss startup Smardex is making waves in the high-stakes world of professional poker, leveraging the growing intersection between cryptocurrency and the game. The company is sponsoring a team of poker players in major international tournaments, aiming too capitalize on the shared risk appetite and technological savvy of crypto enthusiasts and poker aficionados.
Key Takeaways
- smardex, a Swiss DeFi startup, is sponsoring poker players in high-profile tournaments to boost visibility.
- Cryptocurrency and poker enthusiasts share similar risk profiles.
- Professional poker players are increasingly using cryptocurrencies, especially stablecoins, for transactions.
- The cryptocasino market is projected to reach $55 billion by 2032.
Smardex, a decentralized finance company active as 2021, is betting big on the crossover between cryptocurrency and gambling. The company sponsors poker players in prestigious tournaments like the EPT series. “We sometimes commit over $2 million in buy-ins for the entire team over a single weekend,” said Jean Rausis, co-founder of Smardex.
The company also invests in content creation, employing a four-person communications team to produce YouTube videos, including “DeFi the Norm,” which offers behind-the-scenes glimpses of the tournaments. Fausto Munz, formerly of Winamax, contributes to these efforts. This investment aims to build brand recognition within the poker community, a key target demographic for the crypto industry.
Eric Rabl, another Smardex co-founder and a former professional poker player, recognized the potential in targeting poker players. “It was a natural fit,” Rabl said. ”I’m in Las Vegas at least once a year and maintained connections from my pro days, which helped with recruitment.” He emphasizes the similarities between poker players and crypto investors, notably their “lower risk aversion and willingness to accept losses to achieve long-term gains.”
Rabl notes parallels in decision-making: “It’s about detaching emotions, making the right move even if it doesn’t pay off promptly, trusting that it will statistically benefit you in the long run.” He also points out shared pitfalls: “Some become attached to their hand, like others to their crypto, and can’t let go at the right time. Revenge trading resembles a poker tilt – the need to recoup losses at all costs, leading to disastrous outcomes.”
Mehdi Chaoui, a 24-year-old professional poker player from Morocco and a member of the Smardex team, embraced both worlds simultaneously. “As soon as I started earning money in poker, I invested in crypto,” Chaoui said, citing the appeal of an asset class autonomous from traditional banking systems.
“I trade almost exclusively in stablecoins, whether for tournament registrations or to transfer between players.”
Mehdi Chaoui,professional poker player
The Rise of Crypto Gambling
Smardex isn’t alone in recognizing the synergy between these demographics. Coinpoker, an online poker platform where bets are placed using cryptocurrency, also sponsors players in major live tournaments and has launched its own blockchain token. The “cryptocasino” market, encompassing poker and other games of chance, is poised for significant growth. A recent study projects the market to expand from $6.3 billion in 2023 to $55 billion by 2032.
Currently,only 4% of online bets are made using cryptocurrency,suggesting ample room for growth. Beyond mainstream gaming, cryptocurrencies, particularly stablecoins, are increasingly vital for professional poker players, even in live tournaments. Chaoui recently participated in the Triton Series in Cyprus, paying his registration fees in stablecoin dollars. “I trade almost exclusively in USDT, whether for tournament registrations or for transfers between players, many of whom already have a metamask and a Ledger,” he said, highlighting the ease of managing funds compared to traditional banking.
Stablecoin Strategy
Beyond brand building, Smardex aims to promote its synthetic dollar, USDN, launched earlier this year, among poker players. “You have to understand the transaction volumes involved,” Rausis said. “Over a week in Las Vegas, a major player can move up to $10 million. Stablecoins offer significant savings on transaction costs.” A key selling point of USDN is that, unlike USDT and USDC, it generates a yield, currently ranging from 9% to 15% annually. Despite this advantage, gaining traction against established players like Tether is a challenge. “It took three or four months to explain the technical complexities of USDN to developers, and it naturally takes time with the players,” Rausis acknowledged, adding that he attends tournaments to promote the concept.
Can Smardex compete with online gaming giants like winamax and Pokerstars, which sponsor their own teams? The company is focusing on emerging talents like Italian Enrico camossi (with $15 million in online winnings and $4.7 million in live earnings) and Frenchman Thomas Santerne (with $5 million in career earnings, including $2 million at the 2024 Cyprus Triton). In just over a year, Smardex-sponsored players have secured eight titles in EPT or Triton events and reached approximately twenty final tables in major circuits, ahead of the World Series of Poker in Las Vegas this summer. These results are currently covering the millions invested in registrations and travel.
While visibility is the primary objective, Rausis recognizes the importance of success in major competitions: “These players sporting the Smardex logo generate more buzz for the project when they achieve results. people are starting to recognize us, which is encouraging for the future.”
Here’s a Q&A based on the provided article, focusing on SEO, clarity, and a user-kind approach:
Smardex: Bridging the Gap Between Crypto and Poker
This Q&A explores how the Swiss DeFi startup Smardex is capitalizing on the convergence of cryptocurrency and professional poker.
Q: What is Smardex, and what is its strategy in the poker world?
A: smardex is a decentralized finance (DeFi) startup based in Switzerland. It sponsors poker players in major tournaments to increase brand visibility and tap into the crypto-savvy audience within the poker community.The company’s strategy involves significant investments in sponsoring players, content creation (e.g., YouTube videos), and promoting its synthetic dollar, USDN, to professional poker players.
Q: Why is Smardex targeting the poker community?
A: Smardex recognizes a natural fit between poker players and crypto investors. Both demographics often share:
Lower risk aversion: A willingness to accept potential losses for the chance of long-term gains.
Similar decision-making processes: The ability to detach emotions, make calculated moves, and trust in the statistical advantages.
Shared pitfalls: The tendency to exhibit behaviors such as sticking with a “losing hand” (or crypto investment) and revenge trading.
Q: How do poker players use cryptocurrency?
A: Professional poker players are increasingly using cryptocurrencies, especially stablecoins like USDT (Tether) and USDN (Smardex’s synthetic dollar), for:
Tournament registrations: Paying entry fees.
Transferring funds: Facilitating rapid and efficient transfers between players.
Managing funds: for many, crypto offers an autonomous system outside of traditional banking.
Q: What are stablecoins, and why are they popular with poker players?
A: Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar. They are popular among poker players as they offer:
volatility protection: As the value is pegged to the dollar, they avoid the volatility of other cryptocurrencies.
Ease of transactions: Simplifying transfers and payments.
Yield potential: some stablecoins, like USDN, generate a yield, which can be an advantage.
Q: What is USDN,and how does it differ from other stablecoins?
A: USDN is smardex’s synthetic dollar. The key difference between USDN and established stablecoins like USDT (Tether) and USDC (USD Coin) is that USDN generates a yield,currently ranging from 9% to 15% annually.
Q: What is the “cryptocasino” market, and how big is it expected to become?
A: The “cryptocasino” market encompasses online gambling platforms where bets are placed using cryptocurrency. This market, which includes poker and other games of chance, is projected to grow considerably. A recent study forecasts the market to expand from $6.3 billion in 2023 to $55 billion by 2032.
Q: How accomplished has Smardex been in its poker sponsorships so far?
A: Smardex-sponsored players have achieved success in the EPT and Triton events, securing eight titles and reaching approximately twenty final tables in major circuits within just over a year. This has translated to growing brand recognition and is covering their investments in tournament entry costs.
Q: Who are some of the poker players sponsored by Smardex?
A: Some of the poker players sponsored by Smardex include:
Manuel Fritz
Mehdi Chaoui
Enrico Camossi
thomas Santerne
Q: What are the potential challenges for Smardex in the crypto-poker space?
A: Smardex faces the challenge of competing with larger, established online gaming companies like Winamax and PokerStars, which also sponsor poker teams. Also, the company needs to build traction for its product; as Rausis said, it can take time to explain new financial concepts, such as USDN’s yield, to potential users.
Q: What are the benefits of using stablecoins over traditional banking in poker for players?
A: The article doesn’t explicitly state all the benefits, but it implies some of the major benefits:
Speed: Stablecoins transactions can be faster than traditional wire transfers.
Lower fees: Stablecoin transactions can potentially have lower fees.
Cross-Border: Payments across borders are quick and simpler.