Trade and exchange of cryptocurrencies become a profitable and popular way of earning money. The functions of cryptocurrency tend to expand, however, most of the platforms are centralized, so users have to pay commissions for exchange and withdrawal of funds. The community of crypto investors suffers from the limitation of purchasing necessary coins quickly and with profit because it takes them weeks to place coins on the exchange. Moreover, they are to pay commissions for all transactions, and also the rate of the asset aren’t steady.
Figure 1. The conception of LCS is a collaborative work of users on the “ideal” cryptocurrency exchange
The developers of LocalCoinSwap implement the principle of the joint stock company in the cryptocurrency market: users hold tokens, exchange assets independently, set the rate on the exchange, and save on facilitators' commissions. The creators of the project implement the term Cryptoshares defining assets, which guarantee dividends from the platform to their owners. It’s an evident merit of the project in comparison with other ICO which are full of just general promises of high income.
The logic of LocalCoinSwap working provides a regular income from investments. Crypto assets give users a right to vote in the process of management of the platform (choice of new coins for listing, setting commissions for the withdrawal of income). As if it is a meeting of shareholders, but with transparency and reliability of blockchain.
The conception of the joint stock company is flexible instruments for communication among users: the project for listing is selected by voting, everybody can leave feedback about a contract. Users have the full information about the market, so they can control the work of the exchange, probable rate of currencies, and the amount of profit.
What is LocalCoinSwap?
A cryptocurrency exchange is built on three basic principles: security, simplicity, and pleasure from usage. The developers are focused on the interests of novice and ordinary investors, that’s why the functionality of LCS is various, and the interface is simple and transparent. Instruments for communication among users and exchange of opinions are built in the platform. For experienced traders, there are interactive graphs, subtle settings of monitoring, analytics, and the integrated forum of supporters. The platform consists of 9 layers.
1. Coins offered. The exchange is built on smart contracts and works by means of tokens based on ERC20 standard, that’s why it is compatible with up-to-date digital assets, hypersmart contracts, and AI for analysis of Big Data. Such an architecture allows placing new cryptocurrencies just after their release when the price is minimum and perspectives of a project are maximum. The list of coins reflects needs of the society: if the majority of people will vote for placement of little-known coins, so this will be.
2. Escrow system. The LCS platform act as a guarantee of every transaction to be done whether it is the exchange of cryptocurrency assets or transfer of fiat money from one account to another. The system uses P2P transactions, transfers between users without facilitators. When the operation is finished, both parties confirm the fact of receiving assets while the waiting time is set individually. For instance, it takes you several hours to transfer in fiat.
Figure 2. The LCS exchange implementation is a decentralized market of exchange of cryptocurrencies.
3. Dispute resolution. The LCS platform is a third party in disputes between users, it’s an arbitrage of peer-to-peer network. The developers have already prepared the list of possible disputes and scenarios of solutions, however, the International customer support service exists for unexpected situations.
**4. User feedback. All parties to the transaction can leave feedback which influences LCS user’s rating. Feedback from other users together with open voting create a healthy competition in the community, exclude secret arrangements of dishonest members, fake ratings, and other machinations.
5. Community engagement. The developers of LCS consider cryptocurrency exchange to be the platform of communication and exchange of reliable information about the market. For this purpose, the administration regularly posts news about the platform, overviews, information about new coins on the exchange. Such an approach will make the work of newcomers easier, involve participants into the conversation, allow everybody to keep abreast.
6. Security. 95% users’ deposits will be stored in offline wallets in order to reduce risks of loss of assets, theft of funds, or other consequences. The third-party organizations regularly conduct an audit of the security of the system, if there is suspicious activity, all servers automatically go off.
7. Simplified fee structure. The amount of commissions depends on the level of competitors (1% is offered now by LCS) and is deposited for each transaction. If a user withdraws big amounts of funds regularly, he pays reduced commission. Such an approach attracts new users and saves already existing ones.
8. Development potential. The structure of the platform consists of six blocks: authenticate users, the system of digital wallets, accrual of profit, administrative and technical support, statistical data, social platforms. Each block works independently, the most important are doubled on servers. The developers notice that the architecture of the platform is fully workable but may be supplemented.
9. Opening for new business. Successful ICO, which raised millions of dollars, get into ratings of top exchanges and attract much attention. LCS is also attractive for unsuccessful projects which have a great potential. The new ICO is placed in the exchange after the voting of crypto shares holders, and the integration with ERC20 standard, the location in non-English speaking regions, and the aim of promotion of P2P networks are taken into account. Such an approach “broadens horizons” of the platform, allows working with ambitious and extraordinary projects.
Figure 3. The logic of exchange is getting dividends from investments made in cryptocurrency
How does LocalCoinSwap work?
According to Whitepaper, the income of investors on the exchange consists of 4 steps:
1. Purchase of crypto shares. An investor purchases some tokens (Cryptoshares), investing one of the accessible types of cryptocurrencies. Tokens are issued on the basis of ERC20 standard as most of the adaptive platforms, LCS works with Ethereum smart contracts. It is preferable to invest ETH, but other currencies are also accepted.
2. Getting a digital asset. As well as other tokens the LCS shares are transferred to the digital wallet of an investor after finishing the payment. The transaction is fixed in the blockchain and all user’s data are stored in the system.
3. Receive dividends. At the end of each financial period holders of LCS Cryptoshares receive their share of common profit of the exchange. There is a date of closing registries after which all holders, who have tokens in a certain period, receive their part of profit as well as holders of ordinary shares do. Cryptocurrency is a risky asset that’s why the number of dividends can vary according to the period.
4. Withdrawal of received dividends. Investment income in LCS tokens can be converted to the investment currency and transferred to the wallet. For example, if a user invests ETH, dividends are accrued in the same currency. After distribution of funds among all members, requests for income withdrawal are accepted, and users tell numbers of their cryptocurrency wallets and funds are converted automatically.
The developers notice that the functionality of the platform is built on the current blockchain and works “as it is” requiring no substantial improvement. The priority of the team is to create a simple and clear app which allows everybody to earn money avoiding facilitators, risks, and extra commissions. By the moment of the launch, the developers offer to pay dividends in 10 the most popular types of cryptocurrencies but the list will be expanding together with the platform development.
Figure 4. The crypto shares benefits are receiving dividends, the ability to manage the exchange, receiving Airdrops of new projects
Listing of new currencies goes after the voting (the value of each vote depends on the number of crypto shares). Such an approach allows investors to pay attention to new projects, invest in perspective coins long before the beginning of the ICO and increase their income. The LCS exchange supports the creators of ICO themselves allowing them to conduct Airdrop on the platform. Such an approach let attract the wide audience with minimum costs.
The system is built on transparency and decentralization of management. Every user has a right to vote and possess the full information about current state, criterions of development of LCS. For instance, the developers are planning to post the list of improvements on the exchange every month. Users leave feedback, offers new ideas, so the exchange is developing in accord with their needs.
How is the ICO of LocalCoinSwap going?
The developers have issued 100 million LCS tokens based on ERC20 standard, in the ICO (Pre-sale and Main sale) there will be sold 70 million tokens. The price of a token is 40 cents, payment is accessible with popular cryptocurrencies and also dollars (Australian and New Zealand dollars included), euro, and pounds.
The issued tokens are allocated in the following proportion:
● 70% will be sold in the Public ICO, sales will be finished on 15th June 2018, soft cap ($500 thousand) has been already reached.
● 10% will be given to the team. This amount of tokens will be frozen for a year in order to make the asset deflationary.
● 10% is a venture fund for investment in the most prospective projects. They will be selected on the common voting of shareholders.
● 5% of tokens is a security fund - a reward for users, who work on the improvement of the protection on the platform.
● 5% will be spent on Bounty, the program for promotion of the platform in the cryptocurrency community.
Figure 5. The schematic diagram of MVP, independent functional blocks
In the ICO it’s planned to collect no more than $20 million. If this amount is reached, unsold tokens will be “burnt”. The team of the developers couldn’t even imagine such a boom in the crypto community. Soft Cap of the project was reached much earlier than it had been expected. Notifications about new investors appear once per several seconds. By today 37 million out of 100 million LCS has been sold, it makes up 53% of the Hard Cap.
The collected funds will compensate these costs:
● 30% will be spent on the development of the security system. Trading digital assets imply various risks, that’s why the developers are going to implement several types of protection, the urgent security system is placed on isolated servers. Such a solution increases the trust of users to the platform, allows placing highly risky, little-known, and innovative assets without a threat to investors’ funds.
● 30% will be invested in the placement of new crypto coins on the platform. The developers understand that investors are interested in new assets and diversification of their own portfolios.
● 20% will be spent on the future development of the platform. The team has released functional and stable version of LCS, but the market requirements increase and additional instruments for analytics and forecasting attract new clients.
● 15% will be invested in marketing, promotion of the project in the market, and attracting the attention of the financial community.
● 5% will be administrative costs of maintenance of efficiency of the platform, support, and other process members.
What will be with LocalCoinSwap next?
Figure 6. The interface of the LCS exchange
The detailed concept (the work on the project started in 2015), the well-structured and simple Whitepaper, the large-scale marketing campaign, and adaptation to user interests have created the positive reputation, the excessive demand, and the investment flow for the LCS project.
The development of the LCS conception had started in March 2017, and in August began the cryptocurrency exchange service development. By the end of May 2018, the LCS tokens were placed on cryptocurrency exchanges, the first investors gained access to the platform in June, the voting function would start working since the third quarter.
The API for third-party developers and exchange services will be launched in autumn, the mobile app for trading and the first payment of dividends will be in 2019. The team of creators of the project includes programmers, blockchain developers, investors, and owners of the business. There are also advisors of the platform supporting legal, financial, and technical aspects.
According to Whitepaper (analytics and projection), the potential profit for a crypto share will exceed $2,5 thousand by 2022. Cryptocurrency market is unpredictable but the developers are going to bring about risks by diversifications of assets, detailed research, and members’ voting.
LCS are planning to put crypto shares on real stock exchanges. Such a breakthrough will bring the cryptocurrency out of “the financial underground”, and provide the ability to invest in blockchain in several ways.
Summary
The LocalCoinSwap cryptocurrency exchange is based on peer-to-peer network and ERC20 Ethereum smart contracts. The developers strive to create a comfortable, simple, and profitable app. LCS is the first exchange in the market implementing the concept of Cryptoshare and considering token to be the digital asset allowing every member to manage the development of the platform.
Why is the project interesting for investors? The hype is surrounding the LCS due to the revolutionary idea, detailed technology, and attention to customers. The developers accept investments with several types of cryptocurrencies and even in fiat money. Roadmap of the project is really well-designed, while Soft Cap of crowdsale gladdens us with small sums.
Website: http://www.localcoinswap.com/
Telegram: http://t.me/localcoinswap/
Author: https://bitcointalk.org/index.php?action=profile;u=1371034