ICO Analysis: LocalCoinSwap
Cryptocurrency and alternative blockchain-powered monetary systems are now far from a new thing. Individuals, corporate entities, banks and other governmental institutions from almost every modern industrial sector are now involved in this new, yet volatile ICO-flooded market.
While buying bitcoin has become as easy as filling your PayPal account, laying a hand on any other digital asset of this entirely new class, according to G20, requires complex and time-consuming registrations and participation in monopoly-focused exchange markets.
Sure, there are some platforms like Paxful and LocalBitcoins to exchange bitcoin directly with individual owners of the digital currency, using a variety of payment methods, but both are restricted to buying and selling bitcoin only.
Today, we’re focusing on a new innovative approach when it comes to peer-to-peer direct exchanges. LocalCoinSwap is a new start-up trying to solve one of the most important problems in the cryptocurrency scene: the inability to directly purchase any coin or token from anyone. In the process, it seeks to avoid centralized exchange markets and enormous fees one may experience during transactions held on a third-party website.
LocalCoinSwap is a decentralized marketplace run by individual users, who have the ability to buy and sell any cryptocurrency with any possible payment method, directly, without the need for an external exchange market, or Coinbase-like vault platforms.
As prementioned, it is something similar to LocalBitcoins, only it could be described as a “LocalAnyCoin”, since the prior allows users to buy and sell only Bitcoins with any possible payment method, including hand to hand meetups.
For example, if you have a ton of ETH or XRP that you want to cash-out, or you want to buy that IOTA before it skyrockets, you would normally have to go through multiple steps and different websites and wallets before you achieve your goal, ending up with almost 50% of your initial investment in hand.
With LocalCoinSwap you can easily find a match that wants to buy or sell exactly what you’re looking to sell or buy, respectively. Your trade will be held and performed on the LCS platform which uses the traditional escrow system, where it holds the coins to be exchanged, gets a confirmation of the payment from the other end, then releases the coins to the customer. All that with fees ranging from 3% to 10%, pretty much the same as on LocalBitcoins.
LocalCoinSwap has its own token, called LCS, which will be acting as an active cryptoshare. The platform wants to distribute literally 100% of its profits made by their p2p exchange service to the respective shareholders. So, as the site grows and more trades take place under its umbrella, the more relevant and strong your share gets, pretty much like a traditional stock-based company.
LCS holders will additionally receive airdrops of new listed ICO tokens on the LocalCoinSwap platform.
The total supply of LCS tokens is set to 100 million units, with 70 million distributed through their crowdsale stages to individual investors and will make the circulating supply, while 20 million tokens will be reserved in a frozen state for later use. All unsold tokens will be burned to benefit early participants right away. Only 10 million will be reserved for the platform in order to operate and keep updating their services over time.
$500.000 and $20.000.000 USD are the figures for the soft and absolute hard cap, respectively, and the project will be 100% transparent, with their OpenSource code on GitHub being accessible by everyone.
The starting price of an LCS is set to 0.0004 ETH, making 1 ETH equal to 2500 LCS.
The LCS team, while young, is highly skilled with a strong professional background.
Nathan Worsley, having a Bachelor and Major in Economics, is a developer of a series of successful trading algorithms based on Triangular Arbitrage between cryptocurrencies. Residing in Hong Kong, he is the founder of the company and currently its CTO. He is also behind Digital Assets Management Ltd and an experienced high volume P2P trader on LocalBitcoins.com himself.
Thomas Underwood, the CFO of the team, has a Bachelor of Commerce and Major in Accounting and Finance. He’s an experienced financial analyst and business development manager, with roles at major Australian and international private companies and he is also the Australian Regional Manager for TradingView.com
The team goes on including international professionals specialized in financial services, pure mathematics, data analysis and computer science, and many blockchain experts. All of them with decades of pre-history in the industrial sector of the economy.
Key advisers include Mr. David S. Lee, with prehistory in Goldman Sachs, while having multiple degrees from UCLA School of Law, the London School of Economics and Political Science, Harvard University, and Brigham Young University.
It is clear that they’ve done their math on recruiting and the team has filled every corner with the necessary shapes of human assets when it comes to professionals in the financial sector.
Cryptocurrency exchange really becomes an entirely new hobby for the tech generation and it won’t be restricted only to the financial circles.
Platforms like LocalCoinSwap will make it easier for everyone accessing these new digital assets, while at the same time give their customers the ability to trade directly and in real-time currencies that otherwise would require third party leeches.
The cryptoshare model is a revolutionary approach to token distribution among shareholders and it’s the first time we see a blockchain-based start-up being so generous with their crowd.
From an investor’s perspective, the following facts are important to consider when weighing LocalCoinSwap:
- While it is an innovative idea of how a community focused marketplace should work, LocalCoinSwap will be competing with already well-established platforms like Paxful and LocalBitcoins that combined have absorbed more than half of the direct p2p area. -2
- Allowing most of their native shares to be purchased by individual investors could lead to a form of centralization if major mutual funds manage to get a big chunk of the initial offering. -3
- It might take some time before users start to trust each other since the marketplace is based on trust between the two ends (buyer/seller) and the intermediate LCS platform. -1,5
- On the other hand, having a brand new token that starts with 0.0004 ETH per share with just 100 million units in supply that might be also burned in the process is more than just attractive to cryptocurrency investors. +2
- Creating a platform that for the first time would allow users to exchange their favorite digital assets directly with each other is revolutionary. As such, it will definitely attract a majority of the investing crowd. +3
- Around $50 million dollars are being exchanged in bitcoin every day under the wing of Paxful alone, so we can only imagine that number multiplying on a platform that does exactly the same with dozens or even hundreds of options to trade under a similar concept. +4
- Most of the altcoins have one major issue when it comes to capitalization: you are forced to turn them into bitcoin or Ethereum, before turning the later into various fiat currencies. With LocalCoinSwap, you can turn your IOTA, XRP or TRX directly into cash at any moment with any possible payment method. +3,5
While LocalCoinSwap sounds like a solid project, it may seem a bit romantic to others, especially if you consider the latest issues cryptocurrency exchanges face with regulatory organizations.
The Japanese exchange market Coincheck was forced to dismiss a portion of its digital products, including NEM, DASH, Monero, and Zcash in order to comply with the new regulations, while Binance was forced to flee the country of the rising sun and seek a new base in Malta, where cryptocurrencies are still unregulated.
G20 and the European Commission run the Blockchain Observatory and Forum and are already working hard to come up with a regulation plan until the end of summer. Things could dramatically change in the crypto-sphere after that point and decentralized cryptocurrency exchange markets and p2p marketplaces may not be very happy about it.
A score of 6 out of 10 is reserved for LocalCoinSwap, based on present facts.
- Type: Cryptoshare
- Symbol: LCS
- Platform: Ethereum
- Pre-Sale: March 2018
- Public Sale: Apr. 15, 2018
- Hard Cap: $20.000.000 USD
- Payments Accepted: ETH, BTC, LTC, BCH, DASH, ETC, USD, EUR, GBP and other fiat currencies (KYC Required)
- Jurisdictions Banned from Participating: none
Disclaimer: The writer has no position in LocalCoinSwap at the time of writing.
Featured image courtesy of Shutterstock.