Crypto exchanges or digital 바카라s? Unpacking the gamblification of trading
Cryptocurrency exchanges once promised a revolutionary way to invest in the future of finance. But recently, they are starting to look a lot more like Las Vegas than Wall Street. At least, this is what a recent peer-reviewed study conducted by a group of researchers affiliated with Concordia University argues. It reveals many crypto platforms today are essentially gamified ecosystems designed to resemble 바카라s. These exchanges pull users into a dopamine-driven cycle of risk and reward, using tactics similar to those from a gambling playbook: flashy leaderboards, limited-time trading contests, badges, social “guilds,” and even prize pots.
Two key concepts explained
The : financialisation, and gamblification. Financialisation refers to the way everyday life has become wrapped in financial logic—saving, investing, leveraging, and optimising. Whereas gamblification is the transformation of financial activities into game-like experiences designed to reward rapid, risky behaviour. Using BitMEX, one of the most gamified crypto exchanges examined in the report, researchers argue that financial tools are combined with game-like features to turn high-risk speculation into a form of entertainment.
BitMEX offers 100x leveraged trading, real-time competitions between user groups called ‘Guilds,’ and even leaderboards that track top traders like esports tournaments. And it works. According to the researchers, BitMEX generated billions by liquidating overleveraged users, most of whom were drawn in by the thrill of high stakes play.
Lines intentionally blurred
In a candid conversation with SiGMA News, Claude du Toit, a growth expert and crypto enthusiast, and Justin d’Anethan, head of Sales at token launch platform Liquifi, shared their views. Du Toit said there’s no denying the strategy. “These features aren’t accidental. Exchanges make their money from transaction fees and liquidations, so they have every financial incentive to get people trading frequently and taking big risks.”
“The sneaky part is how they package all this activity in respectable financial language like ‘investing,’ ‘yield,’ and ‘strategy,’ which legitimises behaviour that, in substance, closely mirrors gambling.”
Justin d’Anethan believes gamified features are mostly about engagement, “These tools make platforms more engaging and fun.” However, he acknowledges:
“Some exchanges do intentionally blur risk perceptions with gamified language and ambiguous rewards. There’s a fine balance here: engagement should never come at the cost of clarity or investor caution.”
Crypto exchanges profit when users incur losses: report
Another controversial claim highlighted by the researchers is that crypto exchanges make their biggest profits when users incur losses—especially on leveraged trades. The idea here being that exchanges take fees from every trade, but they also liquidate users’ positions when markets move sharply against them. Du Toit does not deny the ethics are murky. He said,“It may not be ethical to offer such services, but with proper education and a risk-based approach on the trading side, it becomes more sustainable. It’s like a knife: in the right hands, it makes dinner. In the wrong hands, it’s dangerous.”
D’Anethan, on the other hand, sees nuance in the model. He believes it oversimplifies things to say exchanges profit when users lose. “Exchanges thrive on high trading volumes, not necessarily trader failures. Still, some unethical exchanges may leverage informational advantages against customers—an issue not unique to crypto but more visible due to lighter regulation.”
Should crypto exchanges be regulated like gambling firms?
On being asked if crypto exchanges should be regulated like gambling companies, D’Anethan disagreed. He said, “Crypto exchanges should undoubtedly face robust regulation comparable to traditional finance platforms handling CFDs, ETFs, and FX trading. But I don’t see why anyone would say they should be regulated like gambling ventures or 바카라s.“
In contrast, du Toit thinks so, at least partially: “There’s a strong case for treating certain crypto trading activities, especially those involving leverage, perpetual, and high-frequency trading, under a regulatory framework similar to gambling.” But there are exceptions, “Not all crypto activity needs to be treated as gambling though. Staking or long-term holding doesn’t pose the same risks, for instance.”
The study also reveals a core contradiction in the crypto industry: platforms market themselves as investment tools but often operate like games. This is argued to undermine user protections and fuels financial harm, particularly for retail investors. Du Toit believes platforms must step up. He said crypto companies “should include behavioural analytics to detect and intervene when users show signs of compulsive trading, optional trading limits and alerts much like responsible gambling tools.” D’Anethan echoes the sentiment, “I think it boils down to crypto firms showing transparency, giving risk education, and responsible trading practices.”
Crypto exchanges aren’t just giving users access to new financial tools—they’re changing the way people relate to money. As exchanges blur the line between investment and play, researchers say gamblification is turning crypto trading into high-risk entertainment. Additionally, both experts agree that transparency, regulation, and user protection are essential as the crypto industry matures.
