Topic: Exchange for sale - Coinnext - page 3. (Read 5191 times)

You should not be trading on your own exchange

No, providing volume is not faking volume. It is running your own trading bots with 0 fee trading to reduce the spread. That is fine to do. In fact, a very positive thing for all users.

Supplying volume to your own exchange is basically the same thing as faking the volume... Also known as fraud. Excel where others fail? Lets be honest, no one cares about live chat if theres no volume, same goes to cold storage / proof of reserves.

With enough capital you can supply volume, then if you have lets say 10 buyers you can get a considerable amount of traffic just from signatures on the forum.

You just have to excel where others fail, so for example implement full cryptographic proof of reserves on all coins, as well as multi sig cold storage. Provide good customer support (live chat isn't being done on many alt coin exchanges).

Im sorry, but you could not "easily" be the next mintpal / crypty etc. They are established and have been around for over a year. People trust them. This market is saturated. There will be no more big altcoin markets. Even crypto-trade which offers securities / vouchers / altcoin exchange / and Fiat currency support has struggled to get any volume. People go where there is volume. Have no volume, your screwed. The fact that your still at 1.6BTC daily volume after months of 0% fee's and having a userbase of ~1700 users shows that its not going anywhere. No one will place a buy or sell order if it appears that it will never be fulfilled. Altcoins skyrocket and crash quickly, they go where there is volume. There is good volume with Bter, crypsty, mintpal, thats why people go there, because they know their buy/sell orders will be taken care of in a reasonable timeframe.

Im sorry, but this is a money pit. I understand you are not going to make a profit on this, never accused you of that, your likely going to take a loss.


Goodluck with your auction, and goodluck to any future owner. You will need it.

I'm just going to put it out there once again, with the right management you could easily become the next mintpal/cryptsy whatever with this. Its really just about what you can do as support/admin.

Well actually 70% of our traffic is free traffic that comes from coin communities such as this one, we chose to also have a certain budget for payed advertising, but that doesn't make it a moneypit, this is something that we were going to calculate and the future owner should as well, if an ad is ROI you keep it otherwise you don't renew it. Either way, current ads are all payed for and come with the sale.

About volume, I am not going to sugarcoat it, our volume is very low. But our sale price is priced accordingly low as well, I am not making any profit by this sale, so I'm not trying to "fool" anyone here. We either find someone to take it over or we will close it down.

To increase volume, the truth is that after 1 month in operation you can't expect more then what we currently have. Having 1700+ users deposited and trading on a bugfree platform, even if it's for satoshis, is an okay result for our first month.
I suspect it will take between 3-6 months to get to a point of decent volume. That is at least how long approx. other exchanges before us took (I monitored this a lot over the last 6 months).

We have had several days with volume nearing 4-5 BTC, a few even were we got to 10 BTC (certain coin launches and days when there was general a high volume on exchanges, basically when coin markets are bullish trading traffic increases/when bearish they drop). The total volume on the front page, if that is your source, resets every day.

We actually already did all of that, we've also run an active crowdcurity campaign and payed a few hundred USD in bounties.

I believe this site has already been checked by crowdcurity


In regards to the OP:
Even with a few thousand in advertising and a good platform, and 0% fee's you are unable to get daily volume over a single bitcoin and change. Do you see why this is worrisome? Huge. Huge. Moneypit.

1) You're not liable

2) Raise enough funds for a security audit of the code, and servers. As well as a crowdcurity campaign.

One thing to consider which im sure many of you haven't, what if the exchange gets hacked and a lot of funds go missing?

All those that join the group buy could be joint liable for the missing funds.

Wouldn't be the first or last time its happened.

I actually got an email from a pretty awesome Bitcoin hosting provider, asking us not to sell and willing to give us free hosting of all our servers to allow us to continue growing without constraints, really a very attractive offer. I think they might be willing to do the same for the buyer so I can always refer the buyer to them.
However if $400 per month is a scary lot for you, this might not be the best project to take over, this is really not just a website but a real startup.

Currently exactly 1,729+ registered and email verified users. (Note how when I posted this topic less than 24h ago, we only had 1600ish).
Over 90% of those users have deposited coins.

We actually have been very active marketing wise. We have several advertising campaigns (around 20) running and already pre-paid for (probably around 2K USD total). Around 30% of our visitors are coming through some kind of payed campaign, so that's actually quite reasonable.

A few that pop to mind (there are many more)
cryptocoincharts.info
cryptocointalk.com
altcoincalendar.info
cryptocoinsnews.com
coinmarketcap.com

We've partnered with coin developers and have given away around 1-2 BTC worth of free comps. That's a major acquisition channel as well.
We also have been highly active on twitter since day one, and have currently 331 genuine followers.

Most of the marketing we did however is free. We are currently visible in every community of each coin we have in our market (bitcointalk/reddit/twitter/forum/cryptocointalk).

There is probably more I forget to mention now, but the baseline is that on the contrary we have been highly active in the marketing departement.

They have 0 marketing from as far as I can tell to, so the name is really not worth much.

You could make this profitable, thats not the question. The question is how much money do you have to throw at this to make it profitable? This is a huge money sink.

Current volume is ~1.6BTC at day. Say they finally start charging fees, they would make ~$85 a month in fees. Thats a net loss of $415 from just server fee's alone. Your in the hole right off the bat.

I'm going to disagree with you. If you're clever you will certainly be able to make this a profitable business.

I would take part in this myself, but obviously working on a similar project.

Look. Yes, the software is worth more than the opening bid. That doesn't mean shit. People aren't looking to buy the software, they are looking to buy the business. The fact is, is that its a saturated market and that this will not make money at 10BTC. The amount of money that would have to be spent on marketing would be insane. And you say that the exchange hasn't been hacked? Thats because no one has heard of it! The volume is so little no one will spend their time trying to hack it. If this ever gets up there in volume, maintaining security on the site would be a huge issue.

Im sorry, but this is a massive money pit.

The IPO is too expensive with little value added from this auction.

I would have to read about it.