AMA March 2019
Good Morning All. We will shortly begin our March Live Telegram AMA with Daniel, our COO, and Nathan, our CTO. 😄 We will start by having the Team give a brief introduction on themselves for our new Community Members, the floor will then be open for questions or topics regarding our LocalCoinSwap platform.
I know we are all looking forward to some great discussion - I do have one ask, please do remain respectful in our communications. 🙏
Daniel and Nathan will be with us for approximately 1 hours time total.
— Live Telegram AMA Begins —
Q) @powerfactor: Can we have multiple payment options for a single add? Instead of having to create new adds for the same token in every payment method you accept.
A) Daniel (LCS COO): It is best for users to create multiple ads, one for each payment method. This makes it easier for users that are searching through the ads to filter down to the one that suits best. We will be improving the “post a trade” functionality in the near future to make the process of creating multiple ads much quicker!
Q) @powerfactor: Also would it be possible when you post a add that any matching or corresponding adds are shown when you post?
A) Daniel (LCS COO): When you say matching, do you mean your own similar ads, or similar ads from other users? This is a great idea and definitely something we can look into. Thanks for the suggestion!
Q) @powerfactor: Another has a chat room on the platform for users to communicate been considered?
A) Daniel (LCS COO): We definitely have considered it. However, for now, it is not something we plan on doing. There are many great platforms out there for chatting like Telegram, Discord, etc. So as some would say: why re-invent the wheel?
Additionally, building our own chat within the platform would take a lot of developer time that could be better spent improving other aspects of the site like usability, SEO, trade-flow etc. And using a white-label chat/forum where we do not build the source code ourselves comes with security risks. The latest hack of LocalBitcoins came through third-party forum software they were utilizing!
Q) @CryptoSwiftly: Hi, great to see the team live. I have a privacy question please. For BTC wallets, inputs and outputs are they or can they be mixed with things like coinjoin/mixers. Do you or plan to obfuscate transactions adding privacy layers to users funds. Thank you.
A) Nathan (LCS CTO): Currently we don’t use CoinJoin but performing a deposit and withdrawal has the same effect from a user perspective.
There’s no linking on the Blockchain between deposits and withdrawals, they come from completely seperate wallets.
In the future we plan to make use of some privacy features though. Dash and Monero are both prime candidates for obsfucated sending
Q) @PrinceAl: Hi do we have any plan to create more volume and liquidity in our LCS exchange? And also liquidity in our LCS token since we are only listed in one centralized exchage?
A) Nathan (LCS CTO): The number one plan and goal for the company is always to increase volume and liquidity on the LCS exchange - everything we do as a company is geared towards this goal.
We are open to new exchange listings but it’s definitely not a priority. Trading outside the platform doesn’t generate any revenue or return for investors.
Q) @clearintell: Privacy & Data Compliance
1) What is the current jurisdiction applicable to our exchange.
2) Are there any potential current or near future changes in any laws that might impact on our exchange.
3) Is there any risk management plan and mitigation for a change should it occur.
A) Daniel (LCS COO): 1) We are currently registered in Hong Kong so that is the relevant jurisdiction. You can view our privacy policy here if you are interested: https://localcoinswap.com/en/privacy/
2) There have been some changes in HK regulations but none that directly affect the operations of LocalCoinSwap as we have been advised. They may, however, affect the operations on Hong Kong traders on the platform.
3) If there are unfavorable changes in regulation in HK, then we will move to a more friendly jurisdiction. Crypto regulation has a history of being very unpredictable so it is impossible to know what will happen in the future.
Q) @powerfactor: Has there been any decision on whether future dividends will expire?
A) Daniel (LCS COO): Not yet, we are still open to community feedback regarding this issue. If there is not a clear consensus, we will take the issue to a vote. However, It is important for us to convey all the information about the pros and cons of expiry/non-expiry clearly to users before any vote would take place.
Q) @Brettblue: Not sure if it's been brought up but any idea of a timeline for crypto to crypto and also would it not influx a higher volume to the platform if implemented any listed crypto for any listed crypto
A) Nathan (LCS CTO): Atm we are looking around September to November for C2C.
It hasn’t been a priority so far compared to other features because LBC and other exchanges that offer this feature haven’t seen any measurable volume from trading this way.
The main benefit for P2P trading is fiat onramping and despite many C2C-P2P options noone on competitor sites has actually been using them (probably due to slower experience and higher fees trading this way compared to centralized exchanges).
So instead we’ve focused on development priorities more likely to directly increase revenue
Q) @clearintell: Marketing:
1) What are the current market segments to be targeted.
2) Are there any plans to provide incentives to traders beyond the referral program.. (i.e random periods where a fee reduction is offered; random periods where a match bonus % is offered; random 1/2 Or full day where no fee applies; random coin or token focus for fee or % bonus; etc.
A) Daniel (LCS COO): 1) Currently, we are focusing on markets that have seen large increases in P2P trading over the last 12-24 months. This includes many emerging markets like parts of South America, some countries in Africa, and some regions in Asia. There is some great data available on P2P bitcoin trading so we are using this to develop our marketing targeting strategies.
2) Yes definitely. We have recently developed a promo-code system that will be rolled out shortly. This system will allow us to create promo codes that offer discounted trading fees contingent on set variables (currencies, time, count etc.). We will be using this functionality to create and market some promotions with the specific target of attracting traders to the platform.
Q) @earnwithcrypto3 & @blackdriar: Can we see improvement in metrics? Like currency traded in charts and range for volume data within specific time..."
A) Nathan (LCS CTO): Sure, initially we want to start with downloadable spreadsheets, and then we’ll look into nicer graphing solutions!
Q) @clearintell: Financial
1) What is the operating budget, funds available, expenditure to date, Reserve funds, budget allocation for marketing, development, business development, support, IT infrastructure, operations and corporate management.
2) Are unallocated funds being invested and what risk management strategy is being used
A) Daniel (LCS COO): Unlike many ICO projects that have failed to even deliver a product, we have released a top class platform in record time. On top of this, smart money management has given an adequate runway to allow 100% of the first quarter's revenue to be distributed as dividends.
Even though we are in a prolonged bear market, we still have sufficient funds left for further platform development and marketing activities to push through upcoming quarters. I don’t have specific numbers on me, but these funds are in a combination of BTC, ETH, fiat, and stablecoins.
We aren’t in the business of trading the funds we have raised like some other projects are doing. As promised we have developed the platform and are now transitioning into the marketing stage of the project. Risk management strategies include a diverse portfolio including stablecoins. Unfortunately, due to the nature of being a crypto company, many traditional banking options and risk strategies are unavailable to us, so this is why stablecoins make up a good part of our risk management.
Q) Reasonable investor: Do you plan to make adv via Yandex Direct? There is a big part of Russian traders on Localbitcoins, I think it might attract new users
A) Nathan (LCS CTO): We’re definitely interested in reaching out to the Russian community through any means possible
Q) @PrinceAl: By the way how do we address the withdrawal issue of the user to avoid waiting so long, shall we say some user after they buy crypto they want to withdraw it instantly
A) Nathan (LCS CTO): About 95% of the withdrawals have been instantaneous, but we’ve had some issues with delays due to waiting to move funds from cold to hot.
Recently some changes we’ve made and deployed last week should have mitigated most of these problems
Q) @Rangodee: I've seen Penelope in the adbank telegram. Are you guys considering advertising with them?
A) Daniel (LCS COO): You have a good eye. We are chatting with adbank about potential ongoing project promotions.
Q) @clearintell: Development:
1) Is there a specific Project Management Methodology used by the team.
2) Are there any plans to provide Project Management Documentation for the community on the site.
A) Daniel (LCS COO): 1) Yes, we use a mix of agile-scrum and Kanban project management methodology. The development team the former, and the business/marketing team the latter. We have experimented with several different methodologies and found these work the best for us.
2) This is something we are open to, however, the current focus is on driving volume. Having a staff members focused on creating public facing project management documentation that has no impact on site volume is not a priority for us at the moment.
Q) @earnwithcrypto3: Can we see flexibility in withdrawal fees? ...for example what if we wanted delay payment with lowering cost...
A) Daniel (LCS COO): This is not currently something we are working on. Users are free to wait till network activity is lower and hence the withdrawal costs are lower before initiating withdrawals from the site. But setting up something automated to capture this is not a priority. It is definitely a good idea, however, we have a long list of features that will help to drive revenue that take priority over this.
Q) @clearintell: Support - Will there be a further invitation to the community to become Ambassadors.
A) Nathan (LCS CTO): Definitely, our focus atm is on finding ambassadors who speak foreign languages and live in targetted markets like Africa, South America, parts of Asia, and the Middle East
If anyone feels like this is them and may be interested, please reach out to Kevin (@Mad4it2 ) 🙂
Q) @Friscoplayrsf: Can we sell Authentic goods such as stock for crypto through escrow like a marketplace?
A) Daniel (LCS COO): We unfortunately cannot allow this due to not being able to control what people are selling.
Q) @GF_Australia: Has anyone from the LCS team spoken to Havven / Synthetix since listing them? From the roadmap I noticed a lot of changes being introduced to Monetary policy. I also noticed the intro of the "onramp" - is this not something LCS platform could / should be positioned to handle this role globaly?
A) Daniel (LCS COO): We haven’t had recent contact with them as we have been focused on the launch over the last month. However, we have some close contacts on their team so we will reach out to them and discuss the upcoming changes they have. They were kind enough to share our platform launch announcements across their social media!
Q) @earnwithcrypt03: Can we sell services ?...I mean it would be difficult to assess but freelancing services maybe?
A) Daniel (LCS COO): Again we unfortunately cannot allow this due to not being able to control what services users are selling.
Q) @Abdus1980: Are voice msgs or video calls something we could have on the platform?
A) Daniel (LCS COO): The dispute resolution process requires LCS admin to have access to all communications between traders on a disputed contract. So if users are voice calling each other, we have no way of moderating trades after the fact. It would open the doors to scammers if we allowed this.
Q) @Abdus1981: Will Neo be added to the platform?
A) Nathan (LCS CTO): It’s on the list of coins we want to implement, but for the future our focus with be BTC, ETH, DASH and LCS - because 95%+ trading action happens on these cryptocurrencies
Q) @AGO-LLIV: As c2c is part of future implementation, is the lcs cryptoshares being considered to be used as a utility coin when c2c is launched? (ie. Binance uses bnb to pay fees on the exchange and discounts on trades). It can add value to the platform and coin on top of the dividends. It can move the trading volume to the platform as well rather than outside exchanges if theres an internal usage of it once implemented.
A) Daniel (LCS COO): This is something that we are definitely open to as it has been successful for Binance and the BNB model. However, it is not something we have started developing at all yet.
Q) @Abdus1980: Have we thought of an exit strategy if volume does not pick up considerably in a year’s time? My point being more established exchanges could be interested in buying LCS at a premium.
A) Daniel (LCS COO): Our focus till date has been on developing a world-class platform, and our focus here forward is driving traffic and volume to the platform. So we don’t have a specific exit strategy in place in a case where the bear market and volume doesn’t pick for an extended period. However, any strategies that are put in place in a case like this will be taken with full collaboration with, and consideration of the community. We have a voting system in place that would be ideal to make any big future decisions in a democratic fashion.
Q) @earnwithcrypto3: Can we have graph of each crypto according to selling price similar to Central exchanges irrespective of location?
A) Nathan (LCS CTO): @earnwithcrypto3 this kind of data isn’t too relevant for P2P exchanges, but users can always access the public data from our exchange and make the calculations themselves if they wish
Q) @Kedr91: How do you plan to add volume if your advertising campaign is not successful?
A) Daniel (LCS COO): We have a diverse marketing strategy that encompasses more than simple advertising using banners and social media. Education is a key marketing strategy that we are, and will continue to use to bring users and traders to the platform. Developing partnerships is another great way to grow our communities and volume.
Q) @gingerbreadfork: Curious if there's any particular payment methods you've tried to integrate into the platform but found challenging or impractical due to the inability to verify payment was made if/when disputes occurred?
A) Daniel (LCS COO): There have been one or 2 payment methods that we have not listed due to impracticalities in dispute management. Having a well-developed dispute management process is of upmost importance in running a P2P platform and adding new methods. Of course, we can’t go into specific details on these for obvious reasons 🙂
Here is a list of Ask Me Anything (AMA) events to read in your spare time:
Thank you everyone for a fantastic live Telegram AMA. It is very important to us that you are able to speak directly with the founders in order to ask pertinent questions that matter to you. We look forward to the next AMA coming in April.