The market

The cryptocurrency market is growing. Exponentially, in fact. And this trend is expected to continue, as cryptocurrency adoption becomes increasingly mainstream. Peer-to-peer (P2P) exchange which is one of the outstanding core values of Bitcoin's concept in particularly and most of other cryptocurrencies' propositions, in general, has been the vital factor in that market.
Here's a line graph showing LocalBitcoins.com Weekly Trade Volume in USD from March 2013 till the 2017 year end with a peek at over $130 million worth of Bitcoin P2P trade in the week starting 23rd of Dec 2017, making it the largest week of P2P trade in the history.

And this is the Yearly Revenue of LocalBitcoins.com (source: from The LocalCoinSwap team's research with data taken from Coindance.com)

With that much of trade volume and site revenue, P2P exchanges are firmly a solid market.

The problem

Yet that market is facing a lot of problems with the currently existing choices of centralized and decentralized sites.
As for centralized exchanges, those sites take a major account for the market shares of exchanges in general - Ironically, centralization in the way for decentralization - yet there are tons of disadvantages for the community stem from the fact that there is a central party to control and manage all the things:

• Manipulation: Current mainstream cryptocurrency exchanges are giant centralized monopolies, which can manipulate prices with the trading volume as they want since the code lines operating the sites are private and at their discretion so no one has access to it for fact-check except for the sites themselves.

• Security: your data and funds stored on those exchanges are vulnerable and could be hacked by anyone (or they claim so, read here for more cases on scam exchanges ran away with traders’ money claiming that they were hacked). There is no guarantee that you would be refunded if any case like that takes place (Even so, it would take a while – which would cost you more regarding opportunity costs)

• Unreasonable verification requirements: new users are frequently restricted from signing up in centralized exchange platforms for many cases, while many other sites strictly require your personal identity card or other types of documents for verification unreasonably, which is not safe for your good as I mentioned above and means you are giving up the absolute privacy and anonymity that cryptocurrencies offer.

• Performance: regarding the longterm, when the demand for trading grows, the centralized system of computational servers cannot satisfy that much so inefficiencies like a long time loading the charts and confirming actions would take place more frequently

Therefore, some teams brought up a solution to build up decentralized exchanges (DEX) to solve the problem for good, and yes, they did answer some questions, yet rising some others:

• The meaning of truely decentralization: currently existing take most of the profits from the fee they got as their sites charge for transactions and fund withdrawals. Is it fair enough? And does that mean the project is decentralized? power and profits are distributed to all participants? Think about it.

Besides, there are issues that all exchanges currently on the table are facing:

• Limit of choices in cryptocurrencies: As of writing there are 1426 cryptocurrencies in circulation, with an average of more than one cryptocurrency being created each day. And mostly, traders are just offered with top 10 or 50 cryptocurrencies to work on.
• An only minimum number of payment methods are accepted: most of the sites on the market right now allow you to buy coins with (1) BTC, ETH; (2) USDT - which is allegedly considered as scam; (3) the site native token (Like BNB on Binance). Only a handful number of them accept fiat like Coinbase, Gemini or Kraken, and notice that they are exclusively available in some countries since just a few fiat currencies are counted in.

The LocalCoinSwap solution

I'll address their most outstanding value: Giving back 100% of the profits.

So basically, for other exchange sites, the company operating that site would charge you some kind of fee (like transactions fee or withdrawal fee) and put those fee in their pocket. Yet this project chose to go with the opposite business model - which I consider as reflecting the core value of decentralization: giving the power and benefit to the hand of the people participating in the project. So it’s like this: After their ICO and the platform comes into practice, the LocalCoinSwap exchange makes profits from the escrow fees in all the currencies traded on the it and at the end of the quarter, all of the profits will be distributed to Cryptoshare holders with the fair and equal weighting: they receive the proportion of the profit equivalent of the percentage of the total LCS they obtain.

As that, what they offer is an exchange created for and owned by the community - the first and only exchange which distributes 100% of profits back to site token holder with those features that no single exchange on the market right now can compete:

• ** Truly decentralized**: Together with profits distributed according to their LCS token shareholding, the LocalCoinSwap team uses the world-first Cryptoshare system for achieving the decentralization: a proof-of-stake voting system for Cryptoshare holders to take the decisions about the platform together.

• Security: Going beyond the security of other decentralized exchanges with the computational resources in the network, 95% of the LCS funds will be kept in offline cold-storage wallets. And If that’s not enough for you, some supported currencies will be backed by Multi-signature transaction options for more security.
  Besides, their escrow system is introduced to further decentralized the site. With that concept, the LocalCoinSwap holds the crypto portion of the transaction until the payment arrives, both buyers and sellers are free of scam worry.

• Wide range of altfolios: The LocalCoinSwap marketplace allows buyers and sellers to trade any cryptocurrency as they want directly (peer-to-peer-P2P). Initially, There are 10 cryptocurrencies available to trade:
  · Bitcoin(BTC)
  · Ripple (XRP)
  · Litecoin (LTC)
  · Ethereum (ETH)
  · Bitcoin Cash (BCH)
  · EOS (EOS)
  · NEO (NEO)
  · Cardano (ADA)
  · Stellar (XLM)
  · Monero (XMR)
  And more to come as the site grows, solving the bottleneck that users have to change their inferior cryptocurrencies to superior types like Ethereum and Bitcoins before purchasing their intended cryptocurrencies.
  
• A variety of payment methods and lots of fiat currencies, which increases the accessibility to many people. Initially,
  more than 20 Fiat currencies accepted as follows:
  · US Dollar (USD)
  · European Euro (EUR)
  · Japanese Yen (JPY)
  · British Pound (GBP)
  · Swiss Franc (CHF)
  · Canadian Dollar (CAD)
  · Australian Dollar (AUD)
  · New Zealand Dollar (NZD)
  · South African Rand (ZAR)
  · Chinese Yuan Renminbi (CNY)
  · Swedish krona (SEK)
  · Mexican Peso (MXN)
  · Hong Kong Dollar (HKD)
  · South Korean Won (KRW)
  · Singapore Dollar (SGD)
  · Turkish Lira (TRY)
  · Indian Rupee (INR)
  · Russian Ruble (RUB)
  · Brazilian Real (BRL)
  · Polish Zloty (PLN)
  · Thai Baht (THB)
  · Malaysian Ringgit (MYR)
  Payment methods accepted initially- more than 10
  · Bank transfer
  · Wire transactions
  · Cash exchange
  · Cash deposit
  · International wire
  · PayPal
  · Cash in the mail
  · Asset exchanges such as gold

• Social Media Feature: The LocalCoinSwap project will bring the social media experience into the trading platform, with custom user profiles, friend lists, achievement badges and special awards, which might increase the use of this exchange among the community.

• Venture Fund: They have a reserved amount of 10% of total LCS token supply called the Community Venture Fund, the use of which is voted by investors like mentioned above, to put forward new business ideas, including ICOs.

• Other sources of income for LCS token holders: Besides the income from profit distributions, whenever a new ICO is listed on the platform, all LocalCoinSwap Cryptoshare holders receive a small amount of that token in return for each Cryptoshare they own as well, meaning LCS holders can receive a continuous stream of income in multiple currencies, just from holding a single asset.

• No verification needed: No central bank accounts or any unreasonable verification requirements needed. A true P2P trading system.

Besides, they obtain what a standard DEX offers: * Transparency: with their open source code on Github, stakeholders to track transactions and ensure the integrity. Review their codes on GitHub here

Social Media Presence

They did quite well with the Bitcointalk ANN with 171 replies, that's impressive to me.

Regarding the variety of social media platforms, they've covered a lot: from Twitter, Facebook and Telegram to Instagram, Medium and Steemit or Reddit or even Linkedin.

Yet talking to the quality, they did not meet my standard. With such a potential project like that, they only achieve a modest amount of social reactions on those platforms, especially important ones like Telegram or Twitter. Specifically, they only got 6065 members in their Telegram channel. I mean seriously? That's not even close to my 10k member standard. Meanwhile, from their joining in Dec 2017 till now, their Twitter got just 6255 followers - it is not a community. And for the record, I have to mention again that, in the crypto world, even if your idea and implementation are good, you could not sell the product if you can not build a community. It's that harsh.

Team

Team

The team consists of a lot of talented and well-profiled members coming from lots of fields, making it the perfect fit.

Advisors

That's quite a board of advisors. There are 10 of them, which is quite a lot to me, yet the more people the more aspects the project is covered.

Token Economics — Token sale

Token Symbol: LCS
Price: 1 LCS = 0.4 USD (1 USD = 2.5 LCS)
Platform: Ethereum
Accepting: ETH, BTC, XRP, Fiat
Minimum investment: 0.1 ETH
Total Supply: 100,000,000 LCS
Token for sale: 70,000,000 LCS
Soft cap: 500,000 USD (reached)
Hard cap: 20,000,000 USD
Country of Origin: Hong Kong
Country Restricted: North Korea, Iran, Sudan, Syria
Whitelist/KYC None

*Unsold token would be burned

Token Allocation

Proceed Uses

My thought

You see, the 10% of the token amount allocated to the development team is frozen by contract for 1 year and the fact that they accept a variety of Fiat currencies for token sale payment is also a sign showing this project is a valid one. I mean scammers will definitely not do that, right? Since wire transfer payment can be traced by the police once they run away with the funds. Moreover, with their acceptance of ICO payment like that, I'm more confident on their competence to fulfill their promise to offer a wide range of cryptocurrencies to trade and lots of payment methods to pay.

Besides, Let’s me do the math and give you a more tempting reason:
Currently, Changpeng Zhao, the founder and CEO of the cryptocurrency exchange Binance, revealed in a LinkedIn blog post that profits stood at $200m in its second quarter; an increase of 2,757% when compared to the $7.5m profit it had made in the previous quarter.
Meanwhile, there is 114,041,290 BNB token circulating in the market right now, yet I’ll take the number of Total Supply of 194,972,068 BNB .And averagely, an ordinary person owns, let’s say, 50 BNB (~$732 - not much right?) —> that’s would be 0.00002564469% of total supply share. Now it might sound minimal yet if Binance follows the same business model as the LocalCoinSwap propose above, that humble number would be also the equivalent proportion of profits that that person would receive, that is 0.00002564469% x $200,000,000 ~ $51. Not bad for an amount of 50 BNB holdings right? For early backers of Binance, they would get it at the very best price like around $1 - $2, they would have 732-1464 BNB and the approximate amount of U.S. dollars from the profit distributions if the case happened.

That’s when we didn’t take its growth of 2,757% from the previous quarter into account. Can you imagine how many people would switch to this exchange to gain back the fee they spend out when trading? Then, think of the increase in size as well as liquidity and last but not least, the value of each LCS? Of course, there would be other influential factors when implementing like technical deployment and business operating, yet if not ideal like Binance with a x100 times in token value, LCS could also achieve an up-stick by x20 times.

You see, the failure of other DEXs is that they could not draw enough attention and the benefits are not that much of tempting for the people to switch their choices of trading. Yet the LocalCoinSwap would be different, with their attractive offer of 100% profit coming back to users' pockets and other side benefits that currently existing platforms don't have. They would take a huge account in the exchanges market shares soon.

Links

Website
Whitepaper
Bitcointalk ANN
GitHub
Telegram
Medium
Steemit
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Author: Bitcointalk username: rueisnax (a.k.a. Vincentle — Le Huu Quang Vinh)
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Disclaimer: Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.
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