A Question From LZF

Would you use a USD/Dash market on LZF.com?

  • Total voters
    22
L

LZF

New member
Dear Dash Community,

LZF has become the first U.S.-based exchange to legally operate fiat/crypto currency markets in 49 States (all but NY) and internationally.

Among other things, this means FDIC insurance on all USD deposits. We also offer 15-minute deposit and withdrawal services via wire, both domestically and internationally. There are no limits. Domestically, this costs $2. So for $2, you can withdraw any amount of USD from LZF to your bank account within 15-minutes during banking hours (i.e., the time it takes until you can literally spend these funds from your debit card).

In addition to our wire services, we also offer free ACH deposits and withdrawals (next-day for withdrawals, 3 business days for deposits).

We already support a Dash/BTC market. We can add a Dash/USD market at any time. So the question is.... (note: see the poll attached)

Thank you,
LZF
 
LZF said:
Dear Dash Community,

LZF has become the first U.S.-based exchange to legally operate fiat/crypto currency markets in 49 States (all but NY) and internationally.

Among other things, this means FDIC insurance on all USD deposits. We also offer 15-minute deposit and withdrawal services via wire, both domestically and internationally. There are no limits. Domestically, this costs $2. So for $2, you can withdraw any amount of USD from LZF to your bank account within 15-minutes during banking hours (i.e., the time it takes until you can literally spend these funds from your debit card).

In addition to our wire services, we also offer free ACH deposits and withdrawals (next-day for withdrawals, 3 business days for deposits).

We already support a Dash/BTC market. We can add a Dash/USD market at any time. So the question is.... (note: see the poll attached)

Thank you,
LZF
Click to expand...
I have never heard of you, but if everything checks out, and you have decent volume, I would definitely use such a service. I put definitely.
 
Congratulations, the whole of America has been waiting for a dollar backed bitcoin exchange that is insured against losses and a safer environment for traders.
A few questions please,

1) what insurance level are you covered upto per person with FDIC ? (well above my pay grade I know, but have to ask)
2) is it possible to see the FDIC insurance certificate ? (good reassurance for traders)
3) do you accept bank accounts from outside of the US ?
4) when you say the PSkey is fully decentralized, does this mean its got it's own blockchain? (PSkey looks innovative, btw)

Thanks, good luck with your launch and have a nice day,

Sub-Ether.

P.S. Your security looks impressive, I like how you don't store any keys unencrypted and only exists for microseconds then erased :)
 
I'm happy to see positive responses so far. :smile:

Sub-Ether said:
Congratulations, the whole of America has been waiting for a dollar backed bitcoin exchange that is insured against losses and a safer environment for traders.
A few questions please,

1) what insurance level are you covered upto per person with FDIC ? (well above my pay grade I know, but have to ask)
2) is it possible to see the FDIC insurance certificate ? (good reassurance for traders)
3) do you accept bank accounts from outside of the US ?
4) when you say the PSkey is fully decentralized, does this mean its got it's own blockchain? (PSkey looks innovative, btw)

Thanks, good luck with your launch and have a nice day,

Sub-Ether.

P.S. Your security looks impressive, I like how you don't store any keys unencrypted and only exists for microseconds then erased :)
Click to expand...

1) $250,000 USD is the standard FDIC coverage. The remainder of any amounts not covered by FDIC are covered using a specifically structured version of a repurchase agreement. Thus, all of the USD funds deposited are insured.

2) We are not releasing this information publicly at this time. Perhaps in a couple of months we will be, so I would encourage you to follow up with us again at that time.

3) Yes. We offer automated domestic and international wire transfer deposit and withdrawal services (these take only 15 minutes--yes, you can have funds in your bank account in 15-minutes and vice-versa during banking hours 9am-3pm EDT). We also offer ACH deposits/withdrawals (3-day deposit window, next-day withdrawals). We are also working on implementing SEPA and Euro's (for legal reasons, we may not be able to offer 49-state availability for this, only international--our legal council will make the final decision on this).

4) PS Key utilizes the Nxt block chain. The entire algorithm behind PS Key was published through the IETF: (can't post links - just google "ietf sodatotea" or "ietf laissez faire") - The PS Key app has an internal/decentralized API so that any website/service can utilize it for the algorithm. If anyone is interested in this, please email lzf-at-lzf (email) to make a request for documentation on this (not sure it has been publicly posted yet).

If you have any more questions, I'll be happy to answer!
 
LZF said:
I'm happy to see positive responses so far. :smile:



1) $250,000 USD is the standard FDIC coverage. The remainder of any amounts not covered by FDIC are covered using a specifically structured version of a repurchase agreement. Thus, all of the USD funds deposited are insured.

2) We are not releasing this information publicly at this time. Perhaps in a couple of months we will be, so I would encourage you to follow up with us again at that time.

3) Yes. We offer automated domestic and international wire transfer deposit and withdrawal services (these take only 15 minutes--yes, you can have funds in your bank account in 15-minutes and vice-versa during banking hours 9am-3pm EDT). We also offer ACH deposits/withdrawals (3-day deposit window, next-day withdrawals). We are also working on implementing SEPA and Euro's (for legal reasons, we may not be able to offer 49-state availability for this, only international--our legal council will make the final decision on this).

4) PS Key utilizes the Nxt block chain. The entire algorithm behind PS Key was published through the IETF: (can't post links - just google "ietf sodatotea" or "ietf laissez faire") - The PS Key app has an internal/decentralized API so that any website/service can utilize it for the algorithm. If anyone is interested in this, please email lzf-at-lzf (email) to make a request for documentation on this (not sure it has been publicly posted yet).

If you have any more questions, I'll be happy to answer!
Click to expand...

I find it suspect you are not willing to provide proof that you are indeed affiliated to the FDIC program; this is not proprietary information and any other affiliated institution would be happy to provide this information. Your insurance certificate should be more than enough.

Pablo.
 
fible1 said:
I find it suspect you are not willing to provide proof that you are indeed affiliated to the FDIC program; this is not proprietary information and any other affiliated institution would be happy to provide this information. Your insurance certificate should be more than enough.

Pablo.
Click to expand...

Was is suspect that Coinbase had insurance on Bitcoin stored since 2013 but only announced it in 2015? I also remember reading about FDIC insurance coverage for Coinbase in the news, but they do not openly advertise the certificates either.

See Below:
Coinbase_insured.png
FDIC_Insurance.png
 
Jushe said:
Was is suspect that Coinbase had insurance on Bitcoin stored since 2013 but only announced it in 2015? I also remember reading about FDIC insurance coverage for Coinbase in the news, but they do not openly advertise the certificates either.

See Below:
View attachment 1875 View attachment 1876
Click to expand...

It's really not the same thing. They kept it under wraps for a while (really under wraps, I've used them for years and although I knew they were insured I wasn't aware they also had FDIC coverage). You are advertising you have FDIC coverage already and refuse to prove it. Further, FDIC coverage requires that you pay a percentage of account holdings to the FDIC to support the structure; how do you plan to finance this given that you are a new exchange? As you point out, coinbase only insured themselves later in the process.

I am not trying to pick a fight with you; on the other hand its very easy for anyone to claim they are FDIC insured and then not provide any evidence isn't it?

Pablo.
 
fible1 said:
It's really not the same thing. They kept it under wraps for a while (really under wraps, I've used them for years and although I knew they were insured I wasn't aware they also had FDIC coverage). You are advertising you have FDIC coverage already and refuse to prove it. Further, FDIC coverage requires that you pay a percentage of account holdings to the FDIC to support the structure; how do you plan to finance this given that you are a new exchange? As you point out, coinbase only insured themselves later in the process.

I am not trying to pick a fight with you; on the other hand its very easy for anyone to claim they are FDIC insured and then not provide any evidence isn't it?

Pablo.
Click to expand...

I'm just a user of LZF, not a representative. However, my understanding from the various announcements is that the FDIC coverage comes directly from the bank and not LZF, because in the case of LZF, the bank is the custodian of USD funds deposited I believe this is unique to LZF unlike other exchanges. See Below:

20Lzf_Bank.png

In other words, when you deposit funds to LZF, it is not LZF who is taking possession of those funds. It is a bank (which would inherently be FDIC insured so long as the bank is in the U.S.). This may have something to do with why they are not willing to release the information yet.

In the case of Coinbase, the FDIC probably comes from their bank as well (Silicon Valley Bank, I believe). That may also be why they don't openly advertise the precise credentials of it either and to my knowledge, there is no FDIC cert on Coinbase's website and it was never made available.

Further to this point, despite misconceptions in the media, Coinbase is not a bank in and of itself. They are just a money transmitter. If they were a bank with their own FDIC, they could legally operate in 49 states as well. They can only do so in 33 states. - I even tried to find Coinbase on FDIC website and they are not there.

Coinbase probably cannot individually cover each depositor with FDIC given that they have possession of their holding account with their bank. It is likely that "only" $250,000 is insured with Coinbase. LZF has said above that all USD funds deposited are covered. I would feel safer putting my money in the latter.
 
Jushe said:
I'm just a user of LZF, not a representative. However, my understanding from the various announcements is that the FDIC coverage comes directly from the bank and not LZF, because in the case of LZF, the bank is the custodian of USD funds deposited I believe this is unique to LZF unlike other exchanges. See Below:

View attachment 1877
In other words, when you deposit funds to LZF, it is not LZF who is taking possession of those funds. It is a bank (which would inherently be FDIC insured so long as the bank is in the U.S.). This may have something to do with why they are not willing to release the information yet.

In the case of Coinbase, the FDIC probably comes from their bank as well (Silicon Valley Bank, I believe). That may also be why they don't openly advertise the precise credentials of it either and to my knowledge, there is no FDIC cert on Coinbase's website and it was never made available.

Further to this point, despite misconceptions in the media, Coinbase is not a bank in and of itself. They are just a money transmitter. If they were a bank with their own FDIC, they could legally operate in 49 states as well. They can only do so in 33 states. - I even tried to find Coinbase on FDIC website and they are not there.

Coinbase probably cannot individually cover each depositor with FDIC given that they have possession of their holding account with their bank. It is likely that "only" $250,000 is insured with Coinbase. LZF has said above that all USD funds deposited are covered. I would feel safer putting my money in the latter.
Click to expand...
Thanks for your informative posts. And to get more than 250k usd insured, they can use more than one bank.
 
Jushe said:
I'm just a user of LZF, not a representative. However, my understanding from the various announcements is that the FDIC coverage comes directly from the bank and not LZF, because in the case of LZF, the bank is the custodian of USD funds deposited I believe this is unique to LZF unlike other exchanges. See Below:

View attachment 1877
In other words, when you deposit funds to LZF, it is not LZF who is taking possession of those funds. It is a bank (which would inherently be FDIC insured so long as the bank is in the U.S.). This may have something to do with why they are not willing to release the information yet.

In the case of Coinbase, the FDIC probably comes from their bank as well (Silicon Valley Bank, I believe). That may also be why they don't openly advertise the precise credentials of it either and to my knowledge, there is no FDIC cert on Coinbase's website and it was never made available.

Further to this point, despite misconceptions in the media, Coinbase is not a bank in and of itself. They are just a money transmitter. If they were a bank with their own FDIC, they could legally operate in 49 states as well. They can only do so in 33 states. - I even tried to find Coinbase on FDIC website and they are not there.

Coinbase probably cannot individually cover each depositor with FDIC given that they have possession of their holding account with their bank. It is likely that "only" $250,000 is insured with Coinbase. LZF has said above that all USD funds deposited are covered. I would feel safer putting my money in the latter.
Click to expand...

Ok that makes sense. I think that what most of us got was that the exchange was FDIC insured itself which didn't make sense. Glad to hear new exchanges are coming online, will definitely use if it develops a good rep.

Pablo.
 
Reading everything on this exchange gave me a nerd boner. I really hope this is legit, and am sad I am not a part of it :(
 
Just created an account to join the discussion. I'm Andrew Tepper - I'm co-founder of LZF, and the creator of the royalty algorithm that LZF uses. I've been involved in cryptocurrencies since June 2010. I'm also the creator of the gambling MMORPG Dragon's Tale, which I believe is currently the oldest Bitcoin based business in the world (since October 2010.)

Glad to answer any technical/philosophical questions about the LZF royalty algorithm.

Teppy
 
teppy said:
Just created an account to join the discussion. I'm Andrew Tepper - I'm co-founder of LZF, and the creator of the royalty algorithm that LZF uses. I've been involved in cryptocurrencies since June 2010. I'm also the creator of the gambling MMORPG Dragon's Tale, which I believe is currently the oldest Bitcoin based business in the world (since October 2010.)

Glad to answer any technical/philosophical questions about the LZF royalty algorithm.

Teppy
Click to expand...

Hi Teppy :),
Glad to see you are on board. I have a few questions as I am quite interested in using your exchange:

1. Where are you incorporated? Can you elaborate on this please?
2. Who are your angels and/or investment syndicate?
3. Do you have any high profile Bitcoiners backing your project?
4. Any high profile people on your board?
5. What banks are you guys using?
6. What happens if you guys get hacked, do you have insurance? Who insures you?
7. Can anyone use your exchange or are you limited to a single country?
8. Any other info you can provide us as to why we should use you guys would be great.

Best,
Pablo.
 
I have another couple comments:

1. I can't sign up for 2FA becuase the app you guys use is only on iphone; I use Authy. Am I missing something?
2. I live in Bolivia but you guys only auto verify phones in 3 countries. Whats up with that? I got virifeid on Coinbase no problem.
3. Have you made prevision for people like me who bank in the U.S. but live abroad?

Thanks,
Pablo.
 
Just want to say that the 1% I would have to pay in in order to buy or sell, and that I would lose if I pulled my order would likely keep me away. I don't like being locked in, even so I trade very little. I'd feel trapped, and it sounds like it would be very hard to see your 1% returned unless you buy high or sell low. So I'd have to say that part of your system doesn't interest me. But also note, I'm not a trader, and when I do trade, it's for very small sums of money, so I'm not your audience.

However, it might be something that would interest merchants. They would be selling at current price, whatever it is, and turning their coins to fiat immediately. So I think this sounds very interesting to me as a Dash supporter. Because if you could service merchants for Dash the way Coinbase does for Bitcoin, it would be a game changer for us here at Dash. So I"m very excited to meet your acquaintance! And I'm very interested to hear more about your setup :)
 
TantaStefana: That's sort of the point - by paying the 1% you're committing to the order. The goal here is to create markets that are *not* subject to psychological twitches. If there is substantial news that causes the the value of Bitcoin to change in traders' eyes, then they can each make a rational decision whether to retract their orders, taking a loss on the 1% and on any accumulated but uncaptured royalties. Doing so enriches others on the same side of the order book, making it even less appealing to pull out. Everything about this is designed to create stable, "boring" markets. And if you take a long-term rational approach, you should be able to profit by being one of those stabilizing forces.

That's the theory - we'll see how it works in practice.

I'm working on an extension to all of this which is an entirely new approach to margin trading and short selling. It eliminates the need for arbitrary leverage ratios, and allows traders to directly specify the amount of risk they are willing to accept. For example: "I wish to margin buy 5 Bitcoins for $100," or "I want to short-sell 10 Bitcoins but never lose more than $80."
 
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