Is anyone even trying to hide the fact that this is a ponzi scheme?
Nothing to hide.
It can be statistically proven that you have better odds at SatoshiDice, considering that the people running this scam are going to take a cut.
1. Can you show to us how you get your statistical proof?
2. "going to take a cut", is your speculation, or a fact? if it's a fact, do you have any proof?
I need to deal with 2. before I can get to 1. Are you going to tell me, in a public arena, that
you will take no profit from this venture? Seriously, go ahead. I will shut up until you have provably violated that statement. Which you will.
As for 1.: The expectation value for a betting system where there is a house cut, martingale or not, is always negative. If 2. is the case, and there's an ADDITIONAL cut for this operation, you're better off just cutting out the middleman.
The thinking here is that the odds of the martingale blowing up can be reduced by generating a huge sum to bet with - "deep pockets". Two problems with this.
The first is that, after enough bets, any martingale without an infinite wallet to back it will inevitably blow up. There are a limited number of coins, so an infinite wallet is clearly not happening.
The second one is that any gambling site which DOESN'T already have a bet limit will soon have one. So when you get your inevitable bad luck, and the Martingale needs to double down a few times to get its money back, you're going to run into bet limits. This will force the martingale to implode more quickly than it would otherwise.
So you'll probably be ahead for a while, because the odds are in your favor. Then you're going to have bad luck and lose a lot of money.
Investors: skip the bullshit and do a few 97.6562% bets on SD.
Edit: Well, nevermind all that about point 2. He was perfectly upfront about his own cut.
House Edge: LetsDice.com will have a house edge of 1.98%
This will be distributed in the following ways:
1% as site profit (his cut)
0.5% as player referral bonuses (ponzi fuel)
0.48% adds to the jackpot
In case all of your eyes have become trained to ignore this warning:
Warning: Moderators
do not remove likely scams. You must use your own brain:
caveat emptor. Watch out for Ponzi schemes. Do not invest more than you can afford to lose.
It's really pretty genius, I'll admit. You don't have to actually steal the coins out of the ponzi at the end, like most scams - instead you'll eventually lose all of them in a Martingale disaster, which "isn't your fault". At least not legally. But by then it won't matter that you've lost everyone else's coins; you'll already have taken your cut.
You've invented a way to steal money away from idiots without it counting as stealing. Bravo.