Bitcoin India: Koinex Exchange Introduces Loop — New Peer-to-Peer Mechanism For Deposit/Withdrawal
I've been saying for sometime now that more Indian cryptocurrency exchanges are likely to move towards implementing P2P systems.
Koinex is the newest entrant in this space. Infact their announcement coincides with that of WazirX. This will allow normal functioning of trades. The advantage being there will be zero transaction fees or network fees while purchasing or selling cryptocurrencies.
I'm not sure how they plan on enabling this but they seem to have worked out the economics to ensure this is possible before announcing. Koinex has made a name for itself in this space over the past year so I don't see why they won't be able to live upto their words.
From the official announcement:
Loop offers a blockchain-based collateralised escrow, peer-network determined trustful reputation, efficient settlements with direct interactions between a buyer and a seller (without ever revealing private and sensitive information, including identity) and a technology-enabled dispute resolution mechanism. Users will find comfort in transacting with other KYC-verified peers on the platform, make and receive payments directly from peers and be able to strategise their trading activity better.
Yesterday, I've written on the nature of these P2P systems and how mechanisms implemented by Indian exchanges are variations of P2P. But semantics aside it's fantastic how we are now seeing alternatives to enter and exit the market.
It would be wise to remember that there is no anonymity in these transactions as the 3rd party exchange has your KYC data. But their escrow system ensures safety and security of crypto-transactions allowing you to trade with a peace of mind.
If you have an account on Koinex with KYC procedures completed you will be able to enjoy uninterrupted trading activity once they launch the services on their website after their banking services are shut down once the RBI ban takes place.
What are your thoughts on exchanges moving in this direction? Let's hear it in the comments below. :)
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Wow great informations,if ban implemented by RBI come true after 5th of july ,than also we have the opportunities.Thanks for great sharing.
Yes Good information about loop . N great thing is there is no any transection fees..
But i have bad experience with koinex exchange. There is no any support for my issue. Even i rays ticket for solve issue. But no reply from koinex team...
new P2P escrow is solution of RBI issue in India. now people can buy and sell crytocurrency in India.
@firepower - Great initiative indeed by Koinex and Wazirx. No one can stop withdrawing INR to banks now. :)
Paxful is already doing what Wazirx exchange is trying to implement.
How is that going for them?
Its working amazing. I have tried multiple times without any problem Just the thing is that price of BTC there is a bit high.
"The BTC Price is a bit high" - Said nobody ever in recent history.
Haha, that's true but I meant to say that a bit high than the actual market price.
That may be the way they finance themselves.
Yup you are right.
Is it still less pricey than just paying a transaction fee that way?
Sounds like a huge win for everyone involved.
How are they going to finance themselves though?
But the thing Blockchain system has changed very prominently and convenient for the users. But with lot allegation from the Indian defentily people need a solution like WazirX. But how far this sytem will work to buyer and sellers we have to wait and see.
They are moving in the right direction. I can't wait experimenting with this type of transactions.
informacion muy importante, gracias por compartirla
I think this peer-to-peer alternative these exchanges have come up with is already being implemented by Localbitcoin.com, although I agree that this will be helpful for the customers but it can also lead to the problems.For example, say these exchanges are audited by the government, then they will readily hand over the details of their customers and customer might get into troubles apart from that because of all these exchanges implementing peer-to-peer at the same time the government will come to know that people are prefering peer-to-peer and these all might get us into unforeseen pronlems.I hope they have planned beforehand how they are going to protect their customer.