CoinPoker

CoinPoker

CoinPoker is an online poker platform that integrates cryptocurrency and blockchain technology into its operations. Launched in 2017 by a group of professional poker players and crypto enthusiasts, it is among the first online poker sites to fully embrace a crypto-only model. CoinPoker is licensed by the Government of Anjouan (Union of the Comoros) and offers global access, accepting players from many regions (including the United States). The platform’s core features include poker cash games, tournaments, and an on-chain random number generator (RNG) that uses cryptographic inputs for card shuffling. CoinPoker also operates a casino section and has its own ERC-20 token, CHP (“Chips”), used for rakeback and other bonus perks.

The site became notable for hosting extremely high-stakes Pot Limit Omaha (PLO) games, including what some observers called the largest online poker pot in history at approximately US\$7.75 million in 2022. Its business model revolves around “community contributions” (rake) that are returned to players through promotions, rakeback, and overlays, reflecting CoinPoker’s “bring the game back to players” philosophy. In 2023–2024, the platform introduced a fully decentralized card-shuffling algorithm and published on-chain proof of reserves, highlighting its emphasis on transparency and security.

History

CoinPoker emerged in late 2017 during the cryptocurrency market boom. A group of poker professionals and blockchain developers, including Antanas “Tony G” Guoga and Justas Kregždė (CTO), founded the site with the goal of applying decentralized technology to online poker.

In November 2017, CoinPoker held an initial coin offering (ICO) for its ERC-20 token, CHP (“Chips”). The token sale allocated 500 million CHP, with 75% for players/investors and 15% reserved for tournament prize pools and promotions. During early 2018, the site transitioned from play-money to real-money crypto poker and began operating under a Curaçao eGaming license.

Early operations (2018–2019)

Initially, CoinPoker charged no rake to attract users in a competitive market. It adopted a full real-money crypto model, using CHP and occasionally ETH or BTC for table stakes. The platform added game variants such as No-Limit Texas Hold’em, Pot-Limit Omaha (4 and 5-card), and Open-Face Chinese poker to diversify its offerings. Early skepticism on poker forums labeled it a “possible scam” or “Ponzi scheme,” but positive reports from players (noting prompt payouts) gradually improved its reputation.

By late 2018 and 2019, CoinPoker introduced its “community contributions” rake system and a 33% weekly rakeback (paid in CHP), gradually moving toward a stable revenue model. Ambassadors, including Tony G and Isabelle Mercier, promoted the site’s ethos of giving power back to players through decentralization.

Transition to stablecoins and growth (2019–2022)

Around late 2020, the platform shifted its primary table currency from CHP to the stablecoin Tether (USDT) to reduce volatility. This decision helped attract more users who preferred stable-value chips at the table. CoinPoker retained CHP as a utility token for rake payments, rakeback, and promotional rewards.

Throughout 2021–2022, CoinPoker drew attention for hosting exceptionally high-stakes Pot Limit Omaha matches featuring Tony G and other high rollers. In early 2022, a single PLO hand reached approximately US\$7.75 million, widely reported as one of the largest online poker pots ever played. These nosebleed sessions were sometimes streamed or publicized, increasing the site’s visibility.

Recent developments (2023–2025)

In 2023, CoinPoker launched its decentralized RNG protocol, allowing players to verify card shuffles using cryptographic seeds and KECCAK-256 hashing. In 2024, the platform published a proof-of-reserves audit, showing all player balances fully backed by crypto assets held in cold storage. The same year, CoinPoker switched to an Anjouan (Comoros) gaming license and removed withdrawal fees to improve user experience.

CoinPoker continued to add ambassadors—such as Patrick “Pads” Leonard and Mario Mosböck—and launched the Crypto Series of Online Poker (CSOP) with US\$1 million in guaranteed prize pools. In November 2024, the site experienced a security incident involving a US\$2 million hot wallet hack, but operations continued after disclosing the breach and covering player balances via its cold reserves.

Platform and Features

CoinPoker offers traditional poker formats, including No-Limit Hold’em, Pot-Limit Omaha (4- and 5-card), Sit & Go’s, and multi-table tournaments. It also added a suite of casino games (slots, live dealer, and table games) for users seeking other gambling options. The poker client is available on Windows, macOS, Android, and iOS; gameplay is server-based for speed, with blockchain elements underpinning fairness and accounting.

The site’s core table currency is USDT, which provides a USD-pegged chip value (1 USDT = 1 USD). Players can deposit and withdraw in BTC, ETH, MATIC, BNB, and CHP, with internal conversions handled in the app’s cashier. CoinPoker is notable for allowing sign-ups with minimal personal information, requiring only an email and phone verification (or a blockchain ID solution), appealing to users seeking privacy or located in jurisdictions without established online poker markets.

Business Model

CoinPoker’s business model is based on a community-centric approach:

• Crypto-only economy: Deposits and withdrawals occur exclusively in cryptocurrency, avoiding traditional payment processors and enabling fast global transactions. USDT is used for gameplay stability, while CHP serves as a rewards and rakeback token.

• Community contributions (rake): Each pot or tournament buy-in includes a small commission, known as “community contributions.” A portion is returned to players in the form of a weekly 33% rakeback (credited in CHP), promotions, jackpot overlays, and tournament guarantees. CoinPoker maintains that the remaining rake goes toward funding leaderboard prizes and platform operations, rather than purely for profit.

• CHP token utility: CHP, launched via the 2017 ICO, remains a loyalty and utility token. Holders paying rake in CHP earn weekly rakeback, and higher CHP balances can reduce or eliminate withdrawal fees (which were removed altogether in 2024). By design, this system encourages players to hold CHP and participate in the site’s ecosystem.

• Revenue streams: Aside from rake (partially recycled into rewards), CoinPoker derives revenue from optional conversion fees, casino games (house edge), and occasional token sales. The platform emphasizes user acquisition and retention through rakeback and promotions, aiming to expand its community of crypto-savvy players.

Technology

CoinPoker uses a hybrid structure that retains the speed of centralized poker while integrating blockchain-based tools for fairness and security:

• Decentralized RNG: In 2023, CoinPoker introduced a provably fair card-shuffling mechanism. Each player contributes an encrypted random seed, which is combined with the server’s seed and hashed via KECCAK-256 to determine the deck order. Once the hand is complete, the seeds are revealed, allowing anyone to verify the shuffle’s integrity and see undealt cards.

• Smart contract token (CHP): Originally an ERC-20 token on Ethereum, CHP migrated to Polygon for lower fees. Players can swap CHP and USDT within the client, and the token is traded externally on various decentralized exchanges.

• Proof of reserves: To address solvency concerns, CoinPoker began publishing on-chain proofs showing that player balances are backed 1:1 (plus a small reserve margin) in cold storage wallets. The platform partners with Fireblocks for digital asset custody and keeps most funds offline.

• Security infrastructure: CoinPoker enforces standard encryption and monitors for collusion or bot activity. Accounts can be created anonymously, but large or suspicious withdrawals may trigger additional KYC checks. A 2024 hack of a hot wallet resulted in US\$2 million stolen, but the site covered user balances through its offline reserves.

Financials and Market Position

CoinPoker is privately held, so detailed financial data is limited. The platform has reported over 60,000 registered users and millions of hands dealt since launch. By some industry estimates, it is the largest cryptocurrency-exclusive poker site in terms of traffic.

CHP’s market capitalization has fluctuated with crypto cycles. After debuting around US\$0.14 in early 2018, it traded mostly in the US\$0.01–0.06 range. In 2024, CHP’s market cap stood near US\$15 million with about 98% of its supply in circulation. Revenue comes from rake, fees, and casino operations, with a large portion reinvested into promotions and player rewards.

Regulatory Status

Initially licensed in Curaçao, CoinPoker switched to a license from the Government of Anjouan (Union of the Comoros) in 2024. Unlike sites licensed by major regulators (e.g., UK Gambling Commission, Malta Gaming Authority), CoinPoker’s offshore license allows it to accept a worldwide audience but places it in a gray area for certain jurisdictions. The platform requires minimal KYC unless suspicious activity is flagged, a practice facilitated by its cryptocurrency-only model.

Security and Fairness

CoinPoker emphasizes transparency to combat the long-standing distrust in online poker fairness:

• Provably fair shuffle: The RNG algorithm allows post-hand verification of the deck, preventing manipulation by the operator or by players.

• Fund custody and solvency: CoinPoker’s proof of reserves and Fireblocks partnership are intended to assure players that funds are not commingled or fractionally held. While the platform was hacked in November 2024, core cold storage reserves remained intact.

• Game integrity tools: Anti-collusion software, device fingerprinting, and manual reviews help reduce cheating or bot use. The smaller community also self-polices suspicious behavior, reporting concerns to support staff.

Community and Reception

Despite early skepticism in 2017–2018, CoinPoker gradually built a niche community of crypto enthusiasts and poker regulars. Fast cryptocurrency withdrawals, anonymous sign-up, and frequent promotions have been praised by users.

Major high-stakes action on the site—involving multi-million-dollar pots—boosted its profile in the poker world. Critics note the site’s limited liquidity compared to mainstream operators, but CoinPoker’s accessibility for U.S. players, generous rakeback, and privacy features continue to attract users.

Partnerships and Influencers

CoinPoker has partnered with professional players and crypto firms to gain credibility:

• Poker ambassadors: Antanas “Tony G” Guoga, Isabelle Mercier, Patrick Leonard, Mario Mosböck, and others have promoted CoinPoker through high-stakes showcases and public endorsements.

• Blockchain industry ties: The platform has integrated with Fireblocks for custody and used Polygon for CHP transactions, reflecting its focus on DeFi and Web3 ecosystems.

• CSOP festival: CoinPoker’s Crypto Series of Online Poker offers major guaranteed prize pools paid in crypto, funded partly by rake contributions and token reserves.

Major Competitors

• Virtue Poker: Another blockchain-based platform backed by ConsenSys, licensed by the Malta Gaming Authority. It uses smart contracts and peer-to-peer shuffling but has struggled to match CoinPoker’s liquidity.
• SWC (Seals With Clubs) Poker: A long-standing Bitcoin-only site with minimal traffic and fewer innovations.
• Offshore networks (WPN, Chico): Traditional poker networks accepting crypto primarily as a deposit option, rather than integrating blockchain fairness or token-based rewards.

Notable Events

• ICO and Grand Opening Freerolls (2017–2018): CoinPoker allocated 15% of CHP tokens to players via large freeroll tournaments, fueling rapid early adoption.
• Record High-Stakes Pot (February 2022): A Pot Limit Omaha hand worth US\$7.75 million was reported on CoinPoker, considered one of the biggest pots in online poker history.
• Provably Fair RNG Rollout (2023): The official launch of decentralized card shuffling, allowing post-hand verification of each deal.
• Proof of Reserves (2024): CoinPoker published on-chain evidence of ~US\$16.3 million in player balances covered by ~US\$17.1 million in secure cold wallets.
• Security Breach (November 2024): Hackers stole around US\$2 million from a hot wallet, prompting a public response from CoinPoker. Player funds were unaffected due to cold storage holdings.