AltCoin P2P Exchange

The existing P2P exchanges focus mainly on BTC and ETH, and their revenue is generally 8-figures a =year.= Centralized exchanges, that include altcoins have revenues of 7-figures a =day.=

Over $3B/yr is lost on unspent gift cards. AltCoin P2P will allow them to buy smaller altcoins, and in turn, stake them for rewards, earn interest, or use them in DeFi to earn.

I have already reached out to tech firms to develop the exchange, which will be about $10K, including a number of AltCoins, and design.

Marketing costs, including influencer marketing, will be between $25 - $30k.

The remaining costs are for hosting services, and general operations, updates, and administration costs.

The customer segments and markets are anyone interested in crypto coins.

One of the most prominent groups are people who adhere to "not your keys, not your coins." When one has their money on a centralized exchange (CEX), it is the exchange, and not the user, that has control of the keys to the wallets. In P2P, the users maintain control of their keys, and only have a limited amount of their crypto being traded in the escrow smart contract.

In addition, some like to site how a Decentralized Exchange (DEX) offers the better alternative to a CEX, for many of the above reasons. However, with a DEX, one must already have access to cryptos, even if they are stablecoins. However, they won't be able to purchase the crypto with fiat. A P2P exchange bridges this gap.

These are some of the top P2P Crypto platforms:


Paxful
Localbitcoins
CoinCola
LocalCoinSwap
HODLHODL
LocalCryptos
Binance’s P2P

Of these, all of them are almost exclusively focused on BTC, with a secondary focus on some in ETH. Few, include other cryptos.

In some parts of the world, including Asia and Africa, the only way people can participate in cryptos is via P2P. This means that many of those regions can only trade BTC and ETH, with a limited range of AltCoins.

In addition, in just the US, $3B in gift cards are lost, not being spent.

A P2P exchange addresses both of these. Not only can people buy crypto with gift cards at rates much lower than BTC/ETH, they can then, depending on the crypto, earn rewards by staking them, earning interest, or yield farming.

The top central exchanges have revenues of about $1M/day. This is by not only offering BTC and ETH, but a wide range of AltCoins.

P2P exchanges focus almost exclusively on BTC & ETH, and make much less, ranging from $20M - $4B a year. By opening up P2P to AltCoins, one can take steps closer to $1M/day revenues.

Lacking the overhead of centralized exchanges, the expenses are thus lower, and NOI will be higher.

Even though they are not direct competitors, these are some of the top CEX:
- Poloniex: $0.07M/day
- Gemini: $0.16M/day
- EXX: $0.18M/day
- Coinegg: $0.22M/day
- HitBTC: $0.27M/day
- Kracken: $0.28M/day
- WEX: $0.35M/day
- BitStamp: $0.39M/day
- GDAX: $0.39M/day
- Bit-Z: $0.44M/day
- Bitfinex: $0.81M/day
- OKEX: $1.24M/day
- BitHub: $1.83M/day
- BitTrex: $2.2M/day
- Huobi: $2.29M/day
- UPbit: $3.42M/day
- Binance: $3.48M/day
https://howmuch.net/articles/crypto-exchanges-revenue

LocalBitcoins posted its business results for 2019 of €26.2 million ($29.48 million). https://decrypt.co/34281/bitcoin-exchange-localbitcoins-revenue-up-paxful

In 2018, 41 percent of Paxful’s USD 20 million in revenue was generated from the Africa region. https://insidebitcoins.com/cryptocurrency-exchanges/paxful-review

Binance P2P Crypto Trading Tops $4.2 Billion in One Year. https://decrypt.co/47045/binance-p2p-crypto-trading-tops-4-2-billion-in-one-year

As previously mentioned, the above centralized exchanges, which generate daily revenues from $0.07M/day - $3.48M/day suffer from "not your keys, not your coins." This is not an issue on a P2P, as the users maintain control of their wallets and keys, and transfers happen with escrow smart contracts.

Localbitcoins features only Btc, xrp, xlm, eth, verge, okb.

Paxful: Btc, usdt, eth.

Localcryptos: Btc, ltc, eth, dash.

Localcoinswap: BTC, ETH, DOT, KSM, USDT, USDC, DASH, LCS, PAX.

Cryptolocally: Btc, eth, usdc, usdt, dai, bnb, trx, wax, eos, tlos, giv-bep2, Sol, srm, Doge, eosdt, busd, uni, eth-bep2, btc-bep2, giv erc20, uft, tlm

Hodlhodl: btc

Coincola: BTC

Bitvalve: BTC, BCH, LTC, ETH, XRP

Remitano: BTC, ETH, USDT, BCH, LTC, XRP

p2p.binance: USDT, BTC, BUSD, BNB, ETH, DAI

kucoin: USDT, BTC, ETH, KCS, USDC

AltCoinP2P: BTC, LTC, ETH, BNB, LINK, UNI, MKR, DAI, HOT, COMP, Sushi, Pancake LPs, BAT, NEXO, KCS, YFI, ZRX, SNT, KNC, REP, BNT, EURS, MASK, POLS, USDT_ERC20, USDC, TUSD, GUSD, BUSD, AMPL, Augmint, DUSD, DGX/DGD, ESD, FRAX, PAX, TGBP, TAUD, TCAD, THKD, SUSD, WBTC, WXMR, WZEC, WNAV...and many more, "out of the box."

The following figures of mid to high end influncers averaging +5k/post. Using micro or nano influencers, the expense figures will be lower.

Conservatively, the first year is
The first year, we can conservatively reach half of Paxful’s revenue at $10M. Efforts to reach Paxful’s $20M within the second year is a viable and conservative goal, with the third year matching LocalBitCoin’s $30M, conservatively. The fourth year is a simple addition of $15M, while the fifth year projection is double LocalBitCoin’s $30M, at $60M.

Figures are projections, only, and do not represent what the project’s revenue, expenses, or net will be.

2021: Revenue $10,000,000. Expenses $377,020. Net 9,622,980.

2022: Revenue $20,000,000. Expenses. $2,356,200. Net $17,643,800.

2023: Revenue $30,000,000. Expenses. $2,356,200. Net $27,643,800.

2024: Revenue $45,000,000. Expenses. $7,068,600. Net $37,931,400.

2025: Revenue $60,000,000. Expenses. $5,432,100. Net $54,567,900

Implementation Plan

To reduce the time needed for launch, we will be using a White Label, for the creation of our P2P exchange. By using a White Label script, the following advantages are open.

Time to launch

When building an exchange from scratch, or hiring a company to complete it, the time to complete it, make sure it functions, check for bugs and holes, fix any problems, and retest can take, on average, a year.

However, when using a White Label, with an established script, the time frame to create the exchange can be completed in a week, if doing an almost exact copy of an existing exchange, or about a month, if implementing some customization to the script.


Other Advantages of Using a White Label P2P

The crypto exchange is fortified with a high-speed engine that efficiently matches buyers' and sellers' orders with minimum latency.

The exchange is integrated with top-notch security features like SSL implementation and two-factor authentication, such as e-mail authentication and Google authentication, which add an extra layer of security to the platform.

A secure and reliable smart contract-based escrow system fuels trading between the platform users.

A peer-to-peer swap indicates trusted users transactions, eliminating the need for a central authority. Atomic swaps revolve around the fact that the transactions either execute completely or terminate, reducing the likelihood of disputes in a scenario of breach of an agreement.

A robust dispute management system enables seamless dispute redressal. Complete details about the users’ transaction history can help the Admin acumen in dispute management and solidify their decisions.

Buyers have the flexibility to choose their preferred sellers, and vice versa, for a more confident and trusted trading experience.

Multi-language support provides global exposure to the exchange. The platform’s UI provides the best user experience for left to right and right to left languages.

They help design and architect the P2P solution with technology and process considerations on the chosen platform, while addressing crucial aspects like UI/UX security, smart contract and legal policies.

They help test the exchange for necessary performance and usability and make required improvements accordingly.

They Implement P2P solution into the IT environment with the help of their dedicated blockchain team, which help enable changes and updates.

A P2P exchange works on the fundamental concept of blockchain, i.e. decentralization. It allows buyers and sellers to trade directly, without any third party involvement.

P2P exchange platforms are more reliable as they eliminate third-party dependency. While centralized exchanges have to adhere to stringent regulations and have high operational overheads and transaction fees, P2P crypto exchanges take up a lot of slack in the system and forge the path for next wave of adoption in this space.

Will be spending the initial $3k to begin technological development of exchange.

Open to offers and negotiations.

Cryptos are an extremely volatile commodity. As such, they are an extremely risky investment.

While an escrow service to allow the P2P trades minimizes risks by not investing directly in the crypto, as with all startups, certain risks are associated, and while steps can be taken to minimize such risks, they are not risk-free.

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