BASE.INFO team has interviewed Daniel Polotsky the CEO of Coinflip project. We have asked the most topical questions to get acquainted with the project and to learn the future plans of the Coinflip team.
Please welcome, Daniel Polotsky.
Do you remember the day, when you and your team decided to launch this project? Can you tell us about it?
I remember using the first bitcoin ATM in Chicago, at Cassava in Wrigleyville. It was an awesome concept, but unfortunately that particular ATM was not very user-friendly. As a result, I went on localbitcoins.com and bought bitcoin via in-person meet up.
My trading partner and I were chatting, and decided that the ATM is a great idea because it automates the job of a local trader--one unit alone can perform hundreds of "meet ups" per month. It also helps onboard people to an unfamiliar technology using a convenient and super-familiar model. We put down our first ATM a few months later.
Could you briefly describe your project?
CoinFlip is a bitcoin ATM company that trades 6 different cryptocurrencies for cash and vice versa. We buy and sell bitcoin, Litecoin, Ethereum, Dash, Tron, and Komodo at our kiosks. We have almost 120 ATMs across the United States, and also accept wire transfers/card purchases for those who do not live near a terminal.
Why it differs among the other cryptocurrency ideas? What main feature can be the significant one?
CoinFlip allows customers to conveniently purchase cryptocurrency directly without a bank account, and without waiting several months to be approved. We offer the lowest bitcoin ATM rates, we always pick up the phone, and registrations are typically approved in 5 minutes. Our company takes the complexity out of investing in cryptocurrency and noticeably speeds consumer adoption.
What are 3 main difficulties in running the cryptocurrency project?
1. Keeping up with the rapidly-changing bitcoin regulatory landscape,
2. Having the cash flow to support all of our ATMs,
3. Making sure even remote ATMs stay up over 95% of the time.
What about the legal restrictions? What are your thoughts on the subject?
We are a regulated MSB (Money Services Business) under FinCEN, and have also been cleared to do business in the states we currently operate in via regulatory approval or legal opinion.
Describe your team in a few sentences? What do you value in your colleagues?
The team is comprised mostly of people I knew well before CoinFlip, either through high school or work. Virtually everyone is super hungry, loyal, low-maintenance, and in their early-mid 20s.
Could you tell us about one error in project’s development that provided a great lesson to your team?
We used a different ATM manufacturer when we first started called BitXATM, and it was a disaster from start to finish. We learned what to look for in a manufacturer and which features we would need in our ATMs to optimize the customer experience.
What are your thoughts about the future of the blockchain in the world? What industries will be influenced most of all?
The technology obviously has a lot of potential. Industries that I see being affected most are cloud storage, transportation, healthcare, prediction markets, and obviously currency.
Can you give a piece of advice to our readers?
Buy the dip.