Topic: CoinJar - Australia's first VC-backed Bitcoin startup - page 7. (Read 39152 times)

Hi coinjar & Co,

Firstly, congratulations on launching a service which many in Australia will no doubt use. I do have one question though, you specify there's only 2% on the current spot price. For Australian customers does this include the GST element of 10%? If it does and given that once your revenue exceeds $75K you would be required to charge GST how is charging 2% on current spot price sustainable?

Thanks,

Stuart

Thanks cooldude123, we're still growing and we try our best to make everything right by our customers.

Unfortunately we won't be accepting cash trades at our offices.  Just from a security point of view, having a large number of people coming in and out of our offices, and also having cash lying around, we're just not at that size where we can guarantee safety. 

Hi, Jerrold here from CoinJar. 

Just thought I'd add another voice to the conversation.  Kelsey, we've done a lot of background work on the banking system here in Australia before pursuing CoinJar, though we're very interested here to hear why you think direct credit is a bad way to do a bitcoin business in Australia.  If you'd like to discuss on the forum we're more than happy to hear your thoughts.  Consequently I'm also happy to discuss privately via email, which you can reach at my first name, at coinjar dot io.

As for zhoutong being on our team, both us and our investors are more than happy to have him on board.  We are a public and open company, and all information about us and our team can be found on our website.  We are not hiding anything.


Jerrold

+1 to coinjar, really quick processing and low fees compared to others.

Only had one issue which was about a week ago with the manual transfer thing, but that was sorted out pretty quickly.

Do you accept cash trades at your office? It'd be really handy if you did.

I don't know what's an "ad hominem attack" (never studied psychology). I was just telling the truth. Everyone knows how to tell the truth. It's the easiest thing to do.

I'm happily developing products that make the world a little bit better. I enjoy what I'm doing - building stuff. Defrauding people will be obviously downgrading my life. Who wants that?

Transfer money, get Bitcoin and immediately transfer out of CoinJar wallet. - Suggested workflow if you just want to buy Bitcoin and not spend it with CoinJar Checkout merchants.

Keeping large amounts of coins in CoinJar is discouraged. We don't get interest from the deposits.

Also,


So you weren't even here when Bitcoinica was being liquidated. What's your authority on this matter?

Thanks for the insult. I'll take that as your sincere request to help us grow.

I'm interested in the "ground work" you've done. Please drop us an email at [email protected] and we're happy to listen to your opinions. Evidence or detailed explanation will be more appreciated than advice in all caps.

Do you have evidence to suggest depositing from a clients bank account to another bank account used by a service like this is a problem? Or just posts from people like bitinnovate and spendbitcoins saying that they are discontinuing parts of their business so you have assumed this is due to client bank transfers?

ok then so you don't know and you never actually did the ground work......OTHERWISE YOU WOULD NOT ALLOW DIRECT TRANSFERS INTO YOUR BANK ACCOUNT FROM CLIENTS BANK ACCOUNT......101 of trading btc in Oz dumbass

and don't even comback saying oh but we sat down with the banks business advisors told them what we were doing and its all cool with them....lol cause that means squat.


BTW not attacking what you guys are doing, your platform is good, your fees are great and a breath of fresh air in Oz (but trading via bank transfers will be your undoing).

Spoke to Asher on whatsapp.
He's a fellow Malaysian.
Good to see this new initiative taking shape.

Care to point out some hints?

We're VC-backed so I'm fairly sure that we (and our investors) have done thorough research on everything we've done so far. At the very least we have access to professionals in the field.

It'll be great if you can be more specific in your questions.

I signed up to check you guys out, then jaw drops, seriously have you guys done your research on this? You know why there's no others doing this?
There's been a few attempt at this by others you do know that? You know why they've failed?

Hi, love the process and the fees, a bit slow with all the manual inputs ect. but this time when I have purchased BTC it says "We will send you ฿ 1.0653 within 24 hours."

the other times I have bought BTC it has been instant (after the bank transfer)

I will use in the future, and I hope you guys introduce a withdrawal(AUD) system at some point too 

I hope all the success to you guys, you have done an amazing job with the website, unbeatable fees and a very user friendly experience.

Best Regards,

CoinJar is backed by Melbourne-based startup accelerator AngelCube (can be verified from their press release). Please be assured that VCs do due diligence much more carefully and responsibly than a few random forum members.

You're under no obligation to use CoinJar Filler or keep your Bitcoins with CoinJar. We discourage our users from saving excessive amount in their CoinJar Bitcoin wallet (and any hosted wallet in general). There's nothing scary about it. We want to facilitate instant transfers and innovative use cases of Bitcoin, and we made the decision that we need to hold the private keys.

CoinJar's business model is to make money from Bitcoin-fiat transactions, mainly from our Filler and Checkout services. 2% is very sustainable because we have access to wholesale foreign exchange rates (1-2 pips vs 300-400 pips by Big 4). We have been gross profit positive since the launch of Filler and our investors are quite happy with our progress.

A key thing to remember is that CoinJar has a long term vision that prevents us from taking excessive short-term profits. Instead of asking whether 2% is sustainable for CoinJar, you probably want to ask yourself whether 10% fee is sustainable for Bitcoin's growth in Australia. CoinJar is not simply a place for you buy Bitcoins in Australia. It represents our vision to bring innovation to Bitcoin and potentially the financial services industry. We are keen to solve problems for Bitcoiners, and buying Bitcoin is just one of them.

It'll be great if you can spend some time to learn more about our products at https://coinjar.io. If you come to Melbourne, you're welcome to come to our office or join a meetup organized by us as well. Our business is tied to the broader market (that is Bitcoin) and it's in our every incentive to grow with the Bitcoin economy and we will never work against this principle.

Unfortunately, due to huge spikes in demand, we had to fall back to manual processing to deliver the Bitcoin purchases. This usually takes no more than a few hours and we have arranged a source to continuously supply Bitcoin in large amounts. We're already doing something like $5k a day within 2 weeks of launch. It's expected that instances like this will be very infrequent in the future.

Thanks for your support BTW. :-)

Interbank deposits usually take 1 business day. If you want the deposits to clear as soon as possible, please transfer from a CBA account or before your bank's cut-off time.

Bitcoin purchases are instant. Once you have the deposit in your account, you can buy Bitcoin and get any number of instant exchange rate quotes. If you confirm the quotes within 30 seconds, they are locked in and the Bitcoins are automatically sent to your wallet.

The only personal information we collect includes your name, email and phone number. And we accept cash deposit.

Welcome home

http://www.youtube.com/watch?v=pID03RrmKowy

Damn it... I just got caught in their NON-instant btc.

I've been only positive of coin jar as I've made several transactions. All have been quick smooth and instant. All have been for $100.

I just transferred $500 into btc but no instant coins...

I had an online purchase already to go and now I dont have enough btc to buy.

Damn it, I thought you guys were INSTANT coin jar.

Yeah man, I am really concerned after reading about the founder of this website.
I read on many threads that he has scammed many people with previous websites...
[search Zhoutong]

Some have actually coined the term: "getting Zhoutonged" meaning to get ripped off or raped... "to loose all your BTC"
https://bitcointalksearch.org/topic/will-i-get-zhoutongued-63831

I have always been a big believer in "if it sounds too good to be true, it usually isn't"... 2% fee just doesn't sound like it is a sustainable business model.  All the other websites charge much higher fees, SpendBitcoin is the highest and his website explains very well why the fees are so high in Australia.

To be fair, I have friends who have used this new CoinJar service and got their Bitcoins fine (although not instantly as claimed)...  However, that is how scams usually work, build everyone's trust and then scam hard for heaps of money.

The fact that all the money and bitcoins in your CoinJar account are held in their possession is very scarey.