BitCoinage, found online at BitCoinage.io, aims to make it easy for novices to participate in the crypto industry. Find out how it works today in our review.
What Is BitCoinage?
BitCoinage is an ecosystem consisting of three core products, including an arbitrage exchange, an online education program, and an insurance company.
The overall goal of the ecosystem is, according to the official website, “to create a whole new sector in cryptocurrency…one that exists between the centralized banking system and the decentralized world of cryptocurrency…a hybrid area where people who are new to cryptocurrency can have peace of mind while enjoying the additional earning potential of cryptocurrency.”
BitCoinage also claims to be the only exchange in the world where users can take advantage of arbitrage opportunities, although it’s not totally clear what BitCoinage means by that:
“We will also create the first exchange that can trade across other exchanges using something called arbitrage trading.”
Typically, arbitrage trading means taking advantage of difference prices on different exchanges, including buying low on one exchange and selling high on another. There are other platforms online where you can do this – so it’s not clear why BitCoinage claims to be the world’s first arbitrage exchange.
In any case, let’s take a closer look at how BitCoinage works.
How BitCoinage Arbitrage Crypto Trading Exchange Works
BitCoinage is comprised of three independent companies, including each of the following:
“The First Ever Arbitrage Cryptocurrency Exchange”
BitCoinage claims to be launching the world’s first cryptocurrency exchange with access to arbitrage opportunities. Launched in March 2018, the exchange removes international borders and allows users to access multiple exchanges from a single interface.
Traditionally, “arbitrage trading” means buying assets at a low price on one exchange and then selling them at a high price on another. Arbitrage trading opportunities were common in the early days of cryptocurrency trading, when bitcoin would sell at significantly different prices between exchanges. Today, there are platforms that aggregate liquidity between exchanges, which virtually eliminates arbitrage trading opportunities. Nevertheless, BitCoinage claims users can still generate profit from arbitrage trading in 2018. The secret to their arbitrage is the use of bots:
“Our bots create an entry each time someone is trading bitcoin at a high price until a pattern is established on those exchange where arbitrage is practiced most frequently. Our bots can then be programmed to automatically execute trades at that average higher price.”
What? So BitCoinage has created bots that buy low and sell high? I don’t fully understand how the company plans to make a consistent profit through this practice, but they claim investors can make money through this system.
The arbitrage system will use features like dynamic APIs, machine learning, atomic swaps, and an enterprise-grade blockchain. It’s unclear how BitCoinage is integrating atomic swaps into this system or why they’re using their own enterprise-grade blockchain.
Online Education Program
BitCoinage claims to offer “a comprehensive cryptocurrency education portal” designed to teach novice investors how to participate in the crypto industry. The portal includes successful investment strategies, advice on building portfolios, cryptocurrency storage protocols, ICO reviews, and more in a single online dashboard.
The goal is to create a one-stop source of knowledge about the cryptocurrency industry – like an Investopedia for cryptocurrency.
BitCoinage will launch a cryptocurrency insurance company. The goal of the company is to give customers peace of mind by providing insurance on their cryptocurrency holdings. “We plan on ensuring [sic] our clients [sic] account from hacking and other evils,” explains the official website, “whether their assets are in hot or cold storage.”
Basically, BitCoinage will charge you a monthly fee to protect your cryptocurrency assets. If your assets are lost, stolen, or hacked, or if your storage devices are damaged, then BitCoinage will provide compensation.
BitCoinage will insure losses from hacking up to $500,000. They’ll also create a multi-level pricing program for clients – although details and price points have not yet been released.
BitCoinage XBCN Token ICO Details
BitCoinage has its own utility token called BitCoinage X, or XBCN. This is an ERC20 token built on the Ethereum blockchain.
The token will provide access to all BitCoinage services – including the arbitrage platform, the education portal, and the insurance program.
There’s a total supply of 200 million XBCN tokens. 5 million XBCN will be released during the first stage of the crowdsale at a price of 1 ETH = 12,308 XBCN and 105 million XBCN will be released during the second stage of the crowdsale at a rate of 1 ETH = 6,154 XBCN.
Of the total supply of tokens, 55% is allocated to the crowdsale, with the remaining tokens going towards BitCoinage’s operating budget (25% of the total supply), a locked fund (15%), and the team, advisors, and bounties (5%).
As of April 2018, dates for the XBCN token sale have not yet been announced.
Who’s Behind BitCoinage?
BitCoinage is led by Greg Lampkin, listed as the Principal Visionary and founder of the company. You can view his LinkedIn page here. Greg established the company in Miami in December 2017.
Other listed members of the executive team include Kevin Ellis (CTO and Lead Developer).
BitCoinage is a cryptocurrency ecosystem consisting of three core components, including an arbitrage exchange, an insurance company, and an education portal. The official BitCoinage website and whitepaper feature basic information about each product, although we don’t have extensive details about any. The arbitrage platform, for example, claims to use bots to take advantage of price differences between exchanges – but it’s not totally clear how it works. The insurance company will protect users against cryptocurrency losses of up to $500,000, but it’s not clear how this works either.
Ultimately, BitCoinage seems to be in the early stages of rolling out. The company was founded in April 2018 – so it’s a relatively recent project. We expect more information to come out over the next few weeks in the lead-up to the token sale for BitCoinage’s XBCN tokens.