We recently held our December YouTube AMA with our LocalCoinSwap cofounders, Nathan Worsley (CTO) and Daniel Worsley (COO), where they addressed technical questions related to the LocalCoinSwap P2P exchange, our recent community vote, exchange listing procedures plus much more. You can read the transcript below…
Q) Can a cryptocurrency be delisted? How do you make that decision?
Daniel - So yes a cryptocurrency could be delisted from the platform and there's a few things we take into consideration when making the decision to delist or not. Now the first thing that may cause a crypto to be delisted would be if there was some sort of technical issue with the blockchain that could lead to say a 51% attack or some other way that uses funds could be lost. The second thing that could cause us to delist a crypto would be if there was something fraudulent going on with blockchain or the project that the cryptocurrency was associated with. The third reason that we may do this to a crypto would be if they just wasn't enough trading volume to generate enough revenue to pay for the infrastructure needed to keep that crypto listed on the platform
Q) Is there a KPI that indicates a crypto is no longer economically viable to be listed?
Daniel - So there's operational costs that come along with listing each new blockchain on the platform. Now these costs are mainly server infrastructure that's involved in processing deposits in withdrawals and checking for transactions. Now if there's not enough trading volume to generate enough revenue to cover these operational costs then it's no longer economically viable to list that cryptocurrency on the platform.
Q) Is it possible to sign exclusivity deals whereby a crypto is traded only on our platform for say 6 months?
Daniel - Now this is possible but it is really dependent on the cryptocurrency in question. A lot of projects aren't really interested in having their cryptocurrency only traded on one specific platform. If there are projects that we are listing where this is possible then by all means this is something we'll look to sign these sort of deals on.
Q) Can we ask projects to make available a certain amount of crypto on the platform for trade upon listing?
Nathan - Maybe a minimum daily requirement for 6 months? Every time we list a new coin and we talk to the people behind the project we always ask them to help provide liquidity on our platform. Sometimes they can other times they aren't holding a lot of their own coins. So it's up to them to encourage their community to come and trade and that's something that we can encourage their community to do as well!
Q) Is it possible to ask projects to advertise on their webpage, and across all social media that their crypto is listed on LCS?
Nathan - Yes it's definitely possible and in fact every time we list a new cryptocurrency we reach out to the people behind that project to ask if they can announce us on their social media at the same time as we announce them. We feel it's in the best interest of LocalCoinSwap to seek out every kind of dual marketing opportunity that is available to us.
Q) Will LocalCoinSwap be listing any additional coins other than the original 20 promised - What is the procedure on choosing these coins?
Nathan - The plan for LocalCoinSwap is to continuously implement coins so once we've implemented the initial batch of coins for a hard launch we're not going to stop there we're going to implement more coins on a continual basis. In terms of picking those coins we've decided that after the implementation of tether which is our next implementation, should be doing about one to two weeks, we're going to specifically choose coins that we feel are in the best interest of the community. We've noticed for some of the coins that we've implemented we haven't had a lot of trading volume on them whereas for some of them, such as our recent launch of (edit - XRP), have generated huge amounts of hype. I mean there's obviously some appetite to trade certain coins over other ones and perhaps the twenty that we originally picked weren't the best reflection on what the community actually wants. So, we've decided that after Tether, from this point onwards, we're going to launch coins in consultation with the community and business to business partnership opportunities.
Q) Will there be any more competitions for community members?
Daniel - So yes we will be having more contests run across our social media or community members. Now we're not quite sure what these contests will be yet but would love some input from the community about any great ideas you have for contests that we could run!
Q) What will happen with community venture and team locked dividends in February?
Daniel - So each dividend period dividend tokens are distributed to all wallets that are holding LCS. Now any dividend payments that come while the team and community venture fund tokens are locked, now they're locked for one year from the conclusion of the ICO, all of those tokens will be locked along in those wallets. Now once that one year period is up those tokens will then be unlocked and all of the dividends allocated to the community venture fund will be redeemed and added to that venture fund and all of the dividends accumulated in the team tokens will then be owned by the team.
Q) How can we increase volume on the platform?
Nathan - There's only one way to increase volume on the platform and that's to increase trading that's going on on the platform - which means increasing the number of advertisements on the platform. So we'd really look to the community and say if you want to help increase volume please trade on the platform. Start to put a buy ad up, put a sell ad up, make profit but you're not just making yourself profit you're helping grow the community at the same time!
Q) Do you want focus on countries where P2P exchange volume is higher (Venezuela, Argentina, Chile..)?
Nathan - That's a good question, yes absolutely! We were doing a market analysis recently of our competition and we saw, just to give you an example, localbitcoins our largest competitor makes about 40 to 50 million dollars in revenue every week. Of that 40 to 50 million dollars only about five million comes from the US. So the largest amount of their revenue is actually coming from these kinds of countries where they have limited access to banking or the government monetary policy is really bad! So currently over the next couple of weeks we're working on localization of the site into as many different languages as possible so that's a big thing that we want to push for in the coming months. To really target those regions of the world where there's such huge demand for peer-to-peer trading!
Q) Where does the team stand on listing LCS on a more reputable CEX? Can we prioritise a new listing on an exchange, obviously behind hard launch though?
Nathan - We've actually reached out to a lot of exchanges to list LCS and unfortunately we've had problems because well at the end of the day we're a competitor so they're reluctant to do this to us for that reason alone. We are currently listed on hotbit where we've had a decent amount of trading volume and we are open to listing on other exchanges but our primary focus is always going to be to drive volume for LCS on LocalCoinSwap itself.
Q) How will we ensure that community members do not use their referrals for their own benefits and fraud the system?
Daniel - So we are constantly on the lookout for users that have various accounts and are using various email addresses to sign up to the exchange. Not just for the referral program but also because they may be involved in other fraudulent activity. Now any users that are found to be frauding the referral program will be banned and they will not receive any of their referral bonuses.
Q) Do we have a date for Hard Launch yet?
Nathan - We don't have an exact date however we're getting a lot closer. After we implement Tether then we've completed the coin side of things that we were constrained for before the hard launch. We've got a little bit more to do on the homepage a little bit more to do on the post trade, a profile page update, a marketing landing page and I think that's it.
Q) Is there a custodian holding funds from the ICO?
Nathan - The funds that we raised in the ICO are not being hodled they're being spent. Just like we outlined in the white paper we're utilizing them for wages for infrastructure for marketing and for security. The actual funds themselves are held in a multi signature cold wallet which is held by three staff members and for any transaction it requires the permission of two out of three of those staff members.
Q) Do you have an established QR code for the exchange?
Nathan - That's a really good idea and I hadn't thought of that! Yes I mean there's a couple of websites where you can do this for free but yeah I think we should get something official together and release it shortly.
Q) How many users are there currently on the platform, and are we seeing growth?
Nathan - Right now as of today we have 1263 registered users. About 500 of them signed up in the first week and the rest have been signing up ever since. The rate of sign ups has increased lately in the last three weeks by about 5 to 6 percent a week. We hope that that trend will continue to grow.