Hi everyone! Another month just flew by at LocalCoinSwap. We have seen many updates, releases, newly added features, and of course, the recent completion of the third community vote.
One of the goals at LocalCoinSwap is to deliver transparency and maintain an open dialogue with our community. That’s why we host the live LocalCoinSwap Ask Me Anything (AMA) each month in our English LocalCoinSwap Telegram channel to discuss any topics that may be pertinent to the LCS community.
Q) When will the first planned for buy back and burn happen and will it be done every 3 months like the Dividend distribution was going to be?
The first buyback is scheduled for December 20, 2019. Initially it will occur every 3 months (like the dividend distribution was going to), however, we are looking to move it more regularly in the near future. Initially monthly and then possibly weekly depending on the practicality.
Q) Many country restricted cryptocurrency trading in local coin or local currency so how to solve this problem by LocalCoinSwap ?
I can’t speak specifically on the laws of individual countries that I am not familiar with. However, LocalCoinSwap provides a platform, whereas, users can trade directly with each other using a wide variety of payment methods. Unlike a regular centralized exchange where you have to deposit local currency to their bank account to purchase BTC, and this transfer may be restricted or blocked by local regulators. Purchasing BTC on LocalCoinSwap can be as easy as a bank transfer directly to another individual, or meeting up with someone in a cafe to purchase using cash!
Q) But in our country can't trade btc to local currency and it against law so how secure to like this country traders. RBI against to trade btc to bank transfer.
I am not familiar with the specific laws in India, but in many of the countries that have imposed laws restricting the exchange of local currency to cryptocurrency, these laws are specifically directed at, and imposed on banks.
LocalCoinSwap offers the ability for users to trade with a huge array of payment methods outside of traditional banks and financial institutions. These include international online payment methods, gift cards and much more.
So if it is illegal to purchase BTC via bank transfer, then you could simply purchase a gift card using bank transfer and then use the gift card to purchase BTC for example.
All transactions on the LocalCoinSwap platform are secured by the escrow system so users can protect themselves against fraud!
Q) Will we be required to withdrawal all our crypto off hot wallets before non-custodial launch?
Great question. To answer simply: No. We will not require anyone to withdrawal cryptocurrency to launch non-custodial trading.
Users funds will move automatically into their non-custodial wallets after the initial setup process, and LocalCoinSwap will pay any associated transaction fees involved in the setup process.
Q) What is LocalCoinSwap locking period for any trade and how many time taking any deposits and withdraw?
When a trade is accepted and the escrow funded (locked), the cryptocurrency is locked in escrow until the trade is either:
- Completed (released to buyer)
- Disputed and resolved (released to either buyer or seller)
Bitcoin (BTC) deposits are credited to your account after 3 blockchain confirmations. The average time for each BTC confirmation is 10 minutes, however, sometimes this can be shorter or longer.
Ethereum (ETH) and ERC20 token deposits are credited after 30 blockchain confirmations. The average time for each confirmation on the Ethereum network is 10 - 20 seconds.
Withdrawals of Ethereum and ERC20 tokens usually arrive in your wallet within 30 minutes, and withdrawals of BTC within 2 hours. Occasionally this can take longer due to unusually high network activity or when there are many site withdrawals around the same time.
Q) Any mobile SMS notification Trading completion?
Currently SMS notifications are only set up for when new trades are initiated. However, you can now set up Telegram notifications for new trades as well as further notifications during the trading process (new messages etc.)
We have found that Telegram notifications are a much more reliable way to deliver notifications to users due to some deliverability issues with SMS. Many users still prefer to receive SMSs for new trades so we have kept both notification systems running!
Q) When, if at all, will a vote be held about what to do with the community venture fund?
There is not yet a date set for a vote on the future of the community venture fund. These tokens will not be moved or used for any purpose until a decision has been made with the direct input of the community.
So far the main consensys of the suggestions we have heard from the community is a complete burn of these tokens. But we still want to gather much more feedback before we make any further decisions on this.
Q) LocalCoinSwap says without KYC, but due no KYC many fraudulent are coming and created dummy account so, how can manage your platform to that frauds?
LocalCoinSwap provides a variety of tools to allow users to be able to trade safely and avoid fraud. These include:
- Secure escrow
- A feedback system
- The ability to block traders under a certain level of reputation
- The ability to block traders without a registered phone number
- And more.
We are constantly analysing the trends in attempted fraud and developing the platform accordingly.
Additionally, although the platform itself does not take KYC information from individual users, if traders prefer to trade with KYC (for regulatory or anti-fraud reasons), they are able to signal this on their trades and perform KYC on people they trade with.
Q) If a buyer and seller are planning to meet face to face and exchange local fiat cash for bitcoin directly... is there any advantage for them to use LocalCoinSwap?
Most definitely. Firstly, If you are buying bitcoin face to face without using LocalCoinSwap, then you don’t know for sure if the seller actually has the BTC that they are selling.
Secondly, even if they do have the BTC, then you have no way of ensuring that they actually send it to you after you pay them.
Thirdly, if they do send the BTC to you after you make the payment, they could potentially defraud you by through an unconfirmed and then replaced BTC transaction.
And lastly, if the BTC block time is slow, you could. potentially be waiting for a long time to complete the trade. There have been block times of over 24 hours in the past!
When trading face to face, it is always recommended to meet in a well lit secure location with security cameras (banks, post offices, shopping centres etc.). This way it is much safer for both parties. And if one party attempts to defraud the other, there is additional evidence to resolve a dispute!
Q) You giving logo BNB in promotion pic and you not listing BNB in LocalCoinSwap for this question. LocalCoinSwap any plan for listing popular coin e.g Digibyte, BNB, Neo or others in future?
BNB was listed on the platform since we launched right up to the time they transitioned from ERC20 to the mainnet. There was not enough demand for P2P BNB trading to warrant spending time and resources integrating the mainnet into the exchange.
Thank you for pointing out that it is still in some of our images. We will resolve that soon!
Right now the focus is on launching the non-custodial functionality of the platform rather than additional coin listings. Once that is complete we will look at the appetite for other currencies to be listed on the platform!
Q) Will the buy back and burn be ongoing for a long period? Let’s say hypothetically I wanted to sell some of my lcs but at the ICO price could that happen? I mean as coins get burned the current price must rise and if we continue bringing in volume. Is it possible I could miss out selling all together if I wait for a long period?
The buyback and burn is planned to continue indefinitely. If the platform continues to make revenue, then the supply of LCS will continue to decrease through the periodic burning of tokens.
From a purely economic perspective, you would expect this action to result in a price increase in the future due to the consistent or increasing demand, paired with a shrinking supply.
Q) Have you approached any other exchanges to conduct the buyback and burn? What’s the preference so far if so? Thanks!
We have not yet discussed the buyback and burn with other exchanges. Some community members have suggested some other exchanges that they would like to see the buyback occur on, however, we are still exploring the options. If anyone has any other suggestions please share them with the team via Telegram, or through the support portal.
The prerequisites for the buyback exchange would have/be:
- A transparent platform (likely a DEX)
- Non-exclusive. I.e. accessible by the vast majority of LCS token holders
- A BTC pairing
- Not a ridiculous listing fee
- Not a direct competitor to LocalCoinSwap
Q) How different LocalCoinSwap from LocalEthereum and Remitano?
Primarily we support multiple currencies, and more payment methods. Our competitor sites all focus on a single cryptocurrency.
But we are also philosophically different in our focus on having a lightning-fast support process, customer-first attitude, and community-focused development
Q) Are you planning any other listings? What about Deex? Cost of the listing is just 500$, the volume is lower but terms are transparent compared to HotBit
I have only briefly looked at the Deex exchange, and from this initial view, I would say that it is likely not an appropriate platform for the buyback. The main reason being that it seems they are (or will soon be) offering P2P trading so that would render them a direct competitor to LocalCoinSwap.
Thank you for the suggestion though! We would love to hear more suggestions from the community on possible platforms for the buyback to occur on.
Q) Why not develop an order-based C2C?
It's quite a long way from the current style of trade we are working on providing. To do so would require extensive side development, and less focus on the priority of the platform to provide P2P trading. There is also an extensive amount of options already in this regard, to put resources towards basically building an orderbook style exchange over the top of LCS would become quite messy and dilute the project focus.
Once again, a massive thanks to our amazing LocalCoinSwap community for the continued support and feedback. Chat soon on our next Live AMA in November!
Don't forget that you can view the full transcript in our English Telegram channel.
The LocalCoinSwap team
Previous AMA events to read in your spare time: