This should work when you want to increase you total wagering amount. Bet on 1.01 and never increase the multiplier even after a loss. The gambler shouldn't implement martingale. Because every time he has to increase the bet amount 100 times and that's so risky.
This strategy is helpful when you can win a prize more valuable than the amount you lose. That's not helpful when there are so many whales in the contest.
Indeed, martingale does not have to be applied in 1.01 bets, but it will take longer to recover our losses where we have to bet 10 times to recover the previous loss. We do not know too, whether for 10 rolls will win 10 in a row so that it returns the previous loss, lucky if yes but if not then we will bet 2x more than the previous bet
I agree with the post you replied to (that was a reply to my post)
We shouldn't and wouldn't use martingale in this setup. As I explained above, you pretty fast get to the house edge on 1.01x, which means that it won't take a lot of bets till you recover what you lost (minus the house edge obviously). In other words, if you make 100 bets, you will see that the number of losing bets comes pretty close to what you would expect from a 1.01 multiplier. You can be damn sure that on a long enough timeline (in fact, quite short for martingale), you will be losing only the house edge