General Idea
LocalCoinSwap wants to create a platform where buyers and sellers could trade any type of cryptocurrency directly among each other. With the recent user’s shift towards decentralization, a safe and easy to use P2PÂ exchange without any unnecessary verification requirements or waiting times, may be very appealing to many cryptocurrency enthusiasts. Moreover, the platform utilizes a secure escrow system that solves the trust issues when it comes to online P2P trading.
The current problem
LocalCoinSwap has noticed that most of the available cryptocurrency exchanges have many drawbacks that could be easily fixed. A centralised mainstream exchange are often fraught with inefficiencies, security risks, long wait times and unreasonable verification requirements. This results in high barriers to entry for a huge number of potential users. Centralised exchanges also allow very little investment opportunities for individuals. Top exchanges have daily volumes in the billions of dollars, and investors have no mechanism through which they can share in the profits. LocalCoinSwap believes that the future of the digital currency ecosystem relies on the development of P2P exchanges and fair share of profits among investors.
The exchange
Thanks to the blockchain technology the whole platform will be fully transparent to the users. All of the transactions and taken fees will be recorded for everyone to check. The creators of the platform want to make it very easy to use. A new user can start trading almost immediately after signing up, as no identity verification are required.
As the platform has a P2P model, an escrow system will make sure that all of the transactions are safe. It acts as an intermediary between buyers and sellers and create a trustless connection. When a new trade is set up, LocalCoinSwap takes possession of the cryptocurrency, while the buyer and seller finish the transaction of fiat payment. Once the seller can verify the fiat transaction has been received, the cryptocurrency is released to the buyer.
Community engagement
With all of the transaction taking place between private users, a well developed rating and feedback system can increase the quality and reliability. A trader can then check for the reviews and feedback of the matched user before accepting the trade.
Moreover, the platform want to remain in good contact with all of its users. They will focus on activity and communication through popular social media accounts, Telegram groups or Slack channels, as well as their own integrated forum.
New Tokens airdrops and listing
Not many exchanges list tokens outside of the top and most popular ones like Bitcoin, Ethereum or Litecoin. Traders and investors who specialize in various smaller altcoins and ICO tokens need to register on multiple exchanges to trade their less popular coins. LocalCoinSwap would like to provide a variety of tradable coins on their platform. There will be regular votings taken among the users and shareholders to add new cryptocurrencies to the platform. All it takes is a strong userbase, because the platform’s focus is on servicing the needs of the greatest number of users possible, rather than providing preferential treatment to any single cryptocurrency.
New projects could launch their ICO tokens or raise pre-ICO and presale funding on the platform. The requirement for listing new ICO tokens is that holders of LCS Cryptoshares receive an airdrop of some proportion of the new tokens in advance. That way, new projects can promote their tokens among platform users and encourage them to actively trade them.
Cryptoshares
The biggest and most interesting feature of the project is the introduction of Cryptoshares. LocalCoinSwap wants all of their investors and token holders to benefit from supporting the platform. Cryptoshares entitle the holders to guaranteed rights to 100% of the total profits from the Localcoinswap exchange through cryptocurrency dividends.
Moreover, Cryptoshares holders will have an opportunity to take part in the platform’s decision making process on listing of new tokens on the exchange, the direction of new business ventures and design considerations or functionalities for the platform for example.
ICO phase
The Initial Coin Offering will start on the 15th of March, 2018. The price is set at 1ETH = 2500LCS. They aim to reach at least $500,000, while the hard cap for the Cryptoshare token crowdsale is set at $20,000,000.
The team
The team behind the project is relatively small, however they seem to be well-prepared to deliver fully working platform. The developers and programmers are very skilled and have previous experience with blockchain technologies. There are also people responsible for the finances of the platform and the whole operation and management.
Final Thoughts
To sum up, the project offer interesting solutions and improvements to regular mainstream cryptocurrency exchanges. With P2P transactions and people seeking decentralised platforms and marketplaces, LocalCoinSwap may be a good alternative to centralised exchanges owned and sometimes manipulated by individuals or big companies. The project seems to be prepared very well, the site’s design looks good and all of the information are provided transparently and with many details. The biggest feature and advantage for many investors will be the benefits that come by holding Cryptoshares token. A well-prospering exchange may yield significant profits and they will be shared among these lucky investors.