We are still receiving a lot of questions regarding our decision to stop lending and moving on to apply the Airdrop solution. This change was made over two months ago, but there are still questions and doubts. This is why we have decided to share this story, not only with our investors but also with the broader audience.
How it began
While creating the ExchangeCoin, one of our primary objectives was to improve the experience of new traders. We understood the problems that could be encountered because our team had faced a similar situation when we started our journey in the cryptocurrency industry some time ago. So the ExchangeCoin (EXCC) was primarily announced to create a decentralized exchange that is user-friendly.
At that time, there were a few platforms that offered decentralized trading but they were not easy to use, for example, Etherdelta, or they could only be used with specific internet browsers such as Waves. Everyone who attempted to use these platforms will testify that trading activities were not as easy as it is with the “standard” exchanges. Especially in the case of inexperienced traders who had a little knowledge of cryptocurrencies, they faced huge challenges.
We did some research and decided to combine our ambition to create a decentralized exchange with the “Lending” features which was very popular at that time, especially on YouTube. But the “Lending” feature was only intended to be a means of presenting our ideas and not the main project. We ensured that all our content including the Whitepaper emphasized the exchange and not the Lending. We have all witnessed the success of the Bitconnect and Regalcoin that applied this strategy. And we also wanted to make it possible for the ICO participants to earn extra income on our platform.
Results and doubts
We were surprised with the results- they exceeded our expectation. The “Lending” feature was excellent in accelerating our ICO, and it helped attract a lot of participants. At the same time, we observed that some popular platforms which offered “Lending” shut down because they were scams. This made us realize two things:
- Our project could be regarded as a fraud,
- Lending could be incorrect legally.
We aim to run a legal business, and this is why after three rounds of sales, we decided to seek legal counsel. Our consultations revealed that restrictions and investigations were ongoing regarding other Lending programs. The message from our attorney was clear, drop the lending program immediately and offer ICO participants some incentives instead. And this is what we did. The announcement that Lending will be stopped was made before the ICO sale ended, and we promised to organize two Airdrops. We also made plans to prepare some additional offers related to our products as compensations for this change.
Consequently, our platform suffered a massive FUD, but it was expected. Thankfully, we had the support of many experienced cryptocurrency traders who knew how the market worked regarding the challenges and the need for patience before earning. We have decided to follow the steps on our Roadmap, and we accomplished many points before they were scheduled.
The market crash
In January, our doubts about Lending were confirmed with Bitconnect announcements of its decision to end their Lending program. Within a few minutes, the price of BCC dropped by 10x. Other lending programs which tried to sustain the scheme started struggling and either disappeared eventually or removed Lending from their offers. This is the main reason why the prices of their coins crashed, and they didn’t have any alternatives. As earlier mentioned, EXCC was announced to create decentralized exchange, and we have developed the best plan to achieve and sustain this goal. The ricochet, however, hit us, and the price began to drop, this was experienced in the entire cryptocurrency market where all cryptocurrency prices including the price of the EXCC fell. But now, there is an opportunity to recover lost value.
Changes in Our System
From the first introduction of our first product, Cryptoxchanger.net has offered many options to exchange different cryptocurrencies. Unfortunately, the prices we offered were not very competitive with similar platforms; this is why we have decided to make significant changes aimed at improving our platform. One of the changes we made was to stop the use of competitions to execute some transactions. Based on the statistics, we discovered that the most common transactions were the purchases of Altcoin for Bitcoin. This is why we decided to review our product to offer only BTC-ALTCOIN purchases, increasing the number of currencies offered to 208 at the same time. We also eventually reduced the exchange fees, and now our platform is more competitive with other providers because we can offer much better rates and shorter processing times for trades. This helps to keep the exchange price close to the displayed rates. Furthermore, we implemented the first EXCC feature, and its holders can benefit from lower exchange fees. We have also continued the Affiliate program which started during the ICO, and we share 50% of the revenue generated from the users’ referral exchange fees. The referral structure introduced at the ICO phase has been retained.
Many of the questions we received asked why we didn’t list our coin when we are an exchange. What we offer is the purchase of one currency for another instead of trading. We APIs from other exchanges to perform these transactions, so we can only offer coins listed on the exchanges with which we are affiliated. Unfortunately, the EXCC is not yet listed on any of the exchange we partner with, and that is why we are unable to include EXCC in our exchanger. There has to be a buyer before we decide to sell something. So, at the moment, this is the way our product works.
On-going and Future Plans
In the following weeks, we will rebrand the existing CryptoXchanger to become Xchange.me. This decision was made for many reasons; first, the new brand name is very catchy. There are many past examples of how a good brand name can contribute to business success. We have made attempts to purchase different domains but Xchange.me was our best choice. Another reason for rebranding is the advice we received from our marketing specialists who believe that our platform is being regarded as a post lending platform even though lending has never been launched. The infamous Bitconnect dragged all other platforms down regarding Lending, and we want to put a distance between our platform and that unfortunate event. We achieved a working product in the beginning, and we are working on delivering the promised decentralized exchange. Rebranding is only a small step, but it is a step forward. However, all the benefits that users were privileged to receive on the CryptoXchanger will be retained under the new brand.
In January, we hired a group of developers who have been working on the creation of a decentralized exchange. They have just finished investigating the existing EXCC source code, and the next phase is to prepare the new roadmap plus Whitepaper. The Whitepaper will be quite technical, so everyone should take time to study the details critically. We plan to release periodic updates regarding on-going developments while sharing the work progress publicly.
In Q2/Q3 2018, we will be releasing an impressive feature (which is part of our old roadmap) for all our users. It is an entirely independent web wallet which will be released with the rebranded exchanger. We have currently integrated the web wallet on our exchanger website which is still fully functional, but our goal is to achieve an independent product. Furthermore, we have decided to create a multiple coin wallet which features many merchant options. These are very good ideas for our platform, and if you know about the strategies used by Coinpayments, you will understand what we aim to achieve. The multi-currency wallet will be fully integrated with our exchanger to enable merchants to receive any cryptocurrency supported by our platform as payment. This means users will receive cryptocurrency such as BTC into their accounts through our systems automated process which will perform a conversion for the merchants.
Stay Tuned For Our Surprise
So far we have revealed the two projects which will be powered by the EXCC, but that’s not all. Do you remember the surprise we mentioned in the Previous Medium post? We have been working hard, and the task is almost complete. We will soon be free to share more details with everybody. But we can assure you that it will be our largest product, and it will make the ExchangeCoin even more popular all around the world.
Thank you all for the attention.