ForexMinute.com – After passing through six-years of rigorous development and testing standards, Buttercoin was officially launched today with both style and substance. The new US-centric Bitcoin marketplace inaugurated with an aim to solve the issues faced by cryptocurrency users – slow transactions being one of them.
Buttercoin claimed to allow its customers to sell and receive money within just one business day. Indeed, almost every Bitcoin exchange out there had failed to handle large transaction volumes, resulting into delayed payouts. Only BitStamp, up to an impressive extent, has been able to provide one-day settlement to its customers, though strictly within Europe. The exchange’s territorial prohibitions makes it impossible for it to deliver one-day settlements within the US. This fact hugely worked in the favor of Buttercoin, and made this 1-day old marketplace a direct competitor to some of the most well-established Bitcoin exchanges.
“We have a hedge fund that makes our markets, so the marketplace is fully liquid,” said Cedric Dahl, the CEO and the founder of Buttercoin. “For people who want to buy less than 20 BTC at a time, we generally have the best price worldwide, and we’re competitive with BitStamp up to approximately 50 BTC at a time, depending on several factors.”
But do they have a prerequisite funding to handle day-to-day large volumes? Apparently yes, thanks to its long list of credible and renowned investors which include the names like Google Ventures, Centralway Ventures, Rothenburg Ventures, Reddit co-founder Alexis Ohanian, Y Combinators, amongst others. According to the available reports, Buttercoin is geared up to sell 200,000-500,000 BTC at a time.
MegaBigPower, a decentralized industrial mining company and one of the first major clients of Buttercoin, also trusted the marketplace for solving the large trading volume issues. “With Buttercoin, I can get payouts in one day, overseas exchanges can take two-plus weeks,” said the company’s CEO Dave Carlson.
Other than MegaBigPower, payment processing company BitPay is another major client to have joined Buttercoin. The marketplace further expressed its interests towards working with any business or individual that meets know-your-customer (KMC), anti-money laundering (AML) and know-your-business standards. Dahl also informed money services businesses (MSBs) about some additional steps required to sign up at Buttercoin.
“For people who are thinking about starting a businesses or seeing what’s possible, we have an excellent set of APIs. We want Buttercoin to be open to them, and for them to be able to build on top of Buttercoin,” he added.
PS: Technically, Buttercoin is not a type of marketplace that holds customers funds. It is like eBay, which simply provides a medium to establish connection with buyers and sellers.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org