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Review of LocalCoinSwap with COO Daniel Worsley.
Can you introduce yourself and your role in LCS?
Hi, I’m Daniel, the COO of LocalCoinSwap. I have been with the project since very early on and my main responsibilities involve managing the everyday operations of the platform, as well as assisting with a very diverse array of tasks across business development, marketing, software development, and customer relations. There is a lot of diversity in all employee’s roles at LocalCoinSwap which ensures all our staff are comfortable across every aspect of the project.
I first became interested in cryptocurrency when I bought my first bitcoin at around $7. This piqued my interest in alternative financial systems which led me to my area of studies. l I graduated from the University in Queensland, Australia with a degree in Economics, majoring in Quantitative Methods. From there I have an array of experience across cryptocurrency and finance.
What is LCS?
LocalCoinSwap is a Peer to Peer (P2P) Bitcoin and Altcoin cryptocurrency exchange. But it is more than just this. LocalCoinSwap is a community and ecosystem that focuses on the diversity of availability and financial inclusion.
On the platform, users can buy and sell over 23+ cryptocurrencies, using over 250+ different payment methods, 160+ fiat currencies and in over 190+ countries worldwide. On top of the platform is a token model that allows anyone to share in the success of LocalCoinSwap via a profit-sharing dividend application.
Can you give us a brief overview of the history of LCS?
Sure, The idea of LocalCoinSwap came from the team’s own wants, needs, and frustrations. Many of the team members have been regular users of localbitcoins and early adopters of cryptocurrency. Once new cryptocurrencies started to appear in this quickly changing space, there was a huge gap in the market of places to buy and sell P2P outside of BTC. This led to the idea of a currency agnostic P2P cryptocurrency marketplace.
The idea behind the token model arose from the issues that we all saw in the giant monopolies behind the biggest cryptocurrency exchanges. There were too many unsavory practices including price manipulation, wash trading and fake trade volumes to name a few. And on top of this, a select few individuals are becoming rich of the backs of every day cryptocurrency users. The LocalCoinSwap token model allows anyone to share in the success of a cryptocurrency exchange. The P2P aspect of the platform ensures that there is nothing nefarious going on behind any order books.
What are the advantages of LocalCoinSwap over other decentralized exchanges?
There are an array of advantages of LocalCoinSwap over other cryptocurrency exchanges, these include:
It can be hard to believe but there are still huge barriers of entry for many people around the world to buy or sell Bitcoin or Ethereum, not to mention the ability to purchase other mainstream cryptocurrencies like Dash, Monero or Tether. In addition, there are still 2 billion people in the world who are unbanked or underbanked, these people lack access to identification documentation required to use centralized exchanges, there are government’s that have banned access to centralized exchanges in entire countries and traditional banking institutions that will close the accounts of anyone they think may use their account with a centralized exchange.
Due to the P2P nature of LocalCoinSwap, users from almost any country in the world, irrespective of their access to traditional finance systems, have access to buy and sell cryptocurrency. In addition, as we only facilitate the ability to buy and sell cryptocurrency on our platform, our users are not disadvantaged by buying and selling cryptocurrency with us as they may be on centralized exchanges. P2P also ensures that people can also trade directly in their local currencies without the need to access USD or EUR or other common pairings.
A wide variety of payment methods:
Decentralized exchanges only support crypto to crypto trading. And most centralized exchanges offer only limited payment methods to cash-in and cash-out when buying and selling cryptocurrency. LocalCoinSwap has over 250+ payment methods that users can actually use including cash, direct debit, credit card, TransferWise, Uphold, even a wide variety of gift cards such as Amazon and iTunes gift cards. The wide variety of payment methods available on P2P exchanges like LocalCoinSwap cannot be understated in regards to importance for widespread adoption and accessibility to cryptocurrency.
No price slippage:
Many decentralized exchanges have low volume. So when purchasing even a small amount of crypto, users often suffer a lot of price slippage causing the average cost to end up being much higher. On LocalCoinSwap there is no price slippage as the price you see is the price you get as you are trading P2P.
Profit-sharing: (Passive Income)
We give 100% of the profit from the LocalCoinSwap P2P exchange back to the community. Token holders receive 100% of the platforms profits as passive income. Unlike any other cryptocurrency exchange, this ensures that we have a very active community of over 4000 people who are personally invested in the success of the platform.
Who are the primary users of LCS?
We are seeing an increasing trend of user signups from emerging markets. Generally places with little to no access to centralized exchanges, or regions with fragile economies or strict capital controls. These include countries in Latin America, the Middle East, and parts of Asia.
Common payment methods are region specific. For example, we have seen trends of users in the US trading with SquareCash App. And users in LATM trading with UpHold, in Australia Cash deposit is especially popular.
Another user of the LCS ecosystem, is the passive income investor. Holding the LCS token, gives the right to the owner, to be rewarded a share of the profits. These are distributed in the cryptocurrencies traded on the exchange.
What is the LCS Cryptoshare?
The LCS Cryptoshare (LCS) is LocalCoinSwap’s native ERC20 token on the Ethereum blockchain. We completed a fundraising period last year where we sold and distributed LCS in order to fund the development and marketing of the platform.
Can you provide an overview of the tokenomics of LCS token?
People that hold LCS Cryptoshare tokens share in the profits of the platform. Every quarter, dividend tokens are distributed to all wallets holding LCS Cryptoshares. These dividend tokens are then redeemed for the profits that the platform made in that quarter.
These profits are paid in the very cryptocurrencies traded on the LocalCoinSwap platform. That means that if people are trading Bitcoin, then our investors receive Bitcoin. If Dash is traded, then our investors receive their profit in Dash. In our first dividend period (February 2019), all LCS Cryptoshare holders received their passive income in BTC, ETH, LCS, BNB, LTC, and ETC.
How is the dividend to the LCS Cryptoshare calculated?
The calculations for the dividend are very simple. We total the revenue made on the exchange, pay the infrastructure and staff costs and the remaining amount is profit. We then distribute 100% of the profit to our LCS Cryptoshare holders.
Dividend per LCS = Profit / total number of LCS
Profit = Total Revenue – Costs
Total Revenue = all the revenue made on the platform. This comes from the 1% fee charged to the market maker of each trade.
Costs = all the costs required to keep the platform operational. I.e. server infrastructure, security maintenance, staff wages, and general administration costs
What efforts is LCS undertaking to expand and grow?
We have a diverse marketing strategy to bring brand awareness and users to the platform. Education is a key facet of this. Everyday people have a lot to learn about the benefits and opportunities that exist with P2P cryptocurrency trading. Developing partnerships is another great way to grow our communities and volume and add value to the LocalCoinSwap ecosystem. We are currently working with numerous top 50 CMC programs to increase awareness of peer-to-peer trading around the world.
Finally, platform development is a key aspect of our strategy to expand and grow. We believe it is important to have the best P2P platform on the market as this enables our marketing team to leverage unique P2P trading features that are unavailable on any other platform worldwide. We will continue to develop and create the best P2P platform on the market.
Would you like to add further information?
Our mission at LocalCoinSwap is to develop the best P2P platform on the planet and ultimately help more people around the world to benefit from their access to cryptocurrency. We believe that P2P platforms like LocalCoinSwap are the key to ensuring that more people will have access to financial opportunities that ultimately help them to improve both the lives of their families and local communities around them. By putting profits back into the hands of the community, we believe we are leading by example to say that people come before profits. This is the way that cryptocurrency should be.
For more information please visit: http://localcoinswap.com
We thank Daniel Worsley for the interview.
- The answers have been provided by the interviewee.
- This is not a buy, sell or hold recommendation of any assets mentioned in this interview.
- Do your own research before you invest in anything.
- This press release/article/interview has been published for free.