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Pre-proposal – Add Dash for trading in Colibit (Cryptocurrency Exchange in Venezuela)

rafa

rafa

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A Proposal to add Dash into Colibit Crytocurrency Exchange in Venezuela, enabling the exchange of Dash and Bolivars (VEF).


Colibit Company Overview

Colibit is a cryptocurrency exchange located in Venezuela, working with the pair BTC/VEF.

Colibit was lauched in June 15th of 2017. Since that time we have gotten great acceptance into Bitcoin community in Venezuela and growing exponentially for the last months.

Our mission is providing an agile and easy to use platform to cryptocurrency clients in Venezuela, and offering the best solution in term of time of response and great service when it comes to procesing Bolivars transactions.

It is important to mention that we don't have any investor onboard yet. The platform has been funded and developed in Venezuela by the founders, which means we have total control over the code.

Our social media pages:

Twitter: https://twitter.com/colibit_io
Instagram: https://www.instagram.com/colibit_io
Facebook: https://www.facebook.com/colibit

and of course take a look at our site:

www.colibit.io


Importance

There is a severe economic crisis going on in Venezuela that results in many problems for the people. For the purpose of this proposal, a few stand out:

A severe shortage of cash to make day to day purchases. Recent goverment policy limits to 10,000 Bolivars (~0.25 USD) a day the amount of cash a person can withdraw from an ATM of a given bank account.

Well stablished bussiness have access to debit and credit card POS, but it's harder for small new bussiness to get them because there is a shortage of them as well. Bank transfers have become popular amongst small new bussineses as a means of recieving payment, but this generates a problem because merchants have to trust their customers to pay them later and the extra work of tracking them to make sure they recieved the payment. Plus if someone uses a different bank to transfer the money, the transaction takes 1 bussiness day to complete.

There is also a hiper inflation problem that is making people seek to buy stronger curriencies like USD and use them to store value. But there is no legal USD free market in Venezuela because of goverment regulations. In fact it’s illegal by law to buy or sell USD using Bolivars outside of the goverment imposed price, so there is a parallel market going on.

Goverment regulations in Venezuela make it really hard for regular citizens to have access to the global economy, not only to recieve payments from other countries but to pay for goods and services outside Venezuela.

As bad as this situation sounds, there is an oportunity to empower people to use cryptocurrencies to solve all of the above mentioned problems, but specially Dash because of it’s “digital cash” features that makes it ideal for day to day payments.

Right now Dash adoption in Venezuela is growing every day, thanks to community impulse and the motivation people have towards using cryptocurrencies in general.

People that hold Dash in Venezuela don't have many alternatives to sell or buy them using Bolivars. It represents a huge problem in term of adoption because right now people don't have an open market to freely set the price of their Dash or exchanging them without using Bitcoin as a bridge.

Having alternatives to directly exchange Bolivars and Dash will motivate more people to recieve payments in Dash as they know they can easily get Bolivars if they need to.


Scope

Adding Dash into Colibit will create:
  1. Price formation for DASH/VEF.
  2. An alternative exchange service to Dash's users.
  3. Enable users to make a market in Venezuela.
  4. Avoid Bitcoin bridge.
  5. Freedom to clients that want to set the price of their DASH/VEF trades.
  6. Increase adoption of Dash by merchants by giving them the fastest and easiest way to converting Dash into Bolivars.


Deliverables
  • Hot and Cold Wallet system.
  • Dash deposits and withdrawals view.
  • Dash transaction history view.
  • Trading view of DASH/VEF pair.
  • Costumer support trained agent to response any questions about Dash.
  • Advertisement content on social media.

Schedule

We are scheduling 6 months in order to fully add Dash to the platform.


Budget

(11,000 USD Monthly. 66,000 USD Total)

Wallet (Hot/Cold) implementation: 30,000 USD
Backend adequation: 15,000 USD
Frontend adequation: 14,000 USD

Testnet node for development VPS: 400 USD
App and database VPS expantion for a year: 600 USD
App and database staging VPS for a year: 1000 USD
3 Dash nodes VPS year: 1,000 USD

Beta testing program (comunity members) : 500 USD
Dedicated customer support agent: 2,500 USD
Rollout advertisment: 1,000 USD
 
i support this proposal over every marketing proposal.

plz try also get and Interview with Tao (theman) or the DASHFORCE News Guys (TRMT) thsis wil help alot

yes from me if you do that
 
I can see the real value of your proposal in combination with all others initiative from venezuela. The only thing I see is I found a bit long the time you need to make dash avalaible on your platform. Technical stuff is not my forte, but is it possible to have dash accesible to your platform sooner? Even without advertisement or much training.
 
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Beru said:
I can see the real value of your proposal in combination with all others initiative from venezuela. The only thing I see is I found a bit long the time you need to make dash avalaible on your platform. Technical stuff is not my forte, but is it possible to have dash accesible to your client sooner? Even without advertisement or much training.
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@Beru thanks for your feedback. We can tighten the schedule by hiring additional devs and QA position, however, this will increase the budget as more resources are required :(
 
Yo pienso que esta sobre pedida la vaina eso solo funcionaria si el exchange fuera hacer solo de DASH una implementacion de una nueva moneda en un exchange no vale ni medio BTC asi que pienso que deberian cambiar el objetivo y en realidad no le veo ayuda a la comunidad de DASH
 
vakano said:
Yo pienso que esta sobre pedida la vaina eso solo funcionaria si el exchange fuera hacer solo de DASH una implementacion de una nueva moneda en un exchange no vale ni medio BTC asi que pienso que deberian cambiar el objetivo y en realidad no le veo ayuda a la comunidad de DASH
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@vakano we think DASH has many advantages over BTC that would work better in Venezuela. Adoption is not going to happen if we don't make it easy for people to exchange their DASH in a free market. Is this the best way to increase adoption of DASH in Venezuela? I don't have the answer, but not having an exchange free market for DASH is for sure not helping DASH community in Venezuela.

Maybe you can share with us your developer experience adding DASH into an exchange so we can bring down costs?
 
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@jimbursch I met her at Dash Conference in Caracas last October 21st. We didn't know much about DASH but @algodon.franelas talk about the DAO really got us interested. I believe she used Colibit to convert the funds to Bolivars for that event. In a way she is responsable for this proposal.
 
  1. What kind of volume do you have? Who are you and what are your company details? Your site has no "about us".
  2. Who is going to do the escrow of this? It's a 100% NO if you're not using escrow.
  3. Are you going to ask for $60k every time you add a new coin? Tomorrow you add monero and you need $60k ? I highly doubt these costs are in any way realistic.
  4. It's clear to me that you're requesting us to subsidize work that you have to do anyway. Adding a coin is part of the job someone has to do in your company. What exactly are you offering the Dash network for $60k?
 
Thanks for your questions @RGXDK, I will respond one by one as follow:

RGXDK said:
What kind of volume do you have? Who are you and what are your company details? Your site has no "about us".
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At the moment, our BTC Volume is close to 0.1 daily. Right now we have 2000 registered users and 500 validated for trading. We are getting 20 new registrations every day on average and month after month number is increasing.
It is important to say that our exchange does not have any investors, all the money used for this startup came from savings and our publicity budget is tiny.

You can check the "about us" in here: www.colibit.io/transparency

RGXDK said:
Who is going to do the escrow of this? It's a 100% NO if you're not using escrow.
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Yes, we agree that if this proposal were to prosper we need an escrow to make sure the funds are given in time with the accomplishment of the project milestones.

RGXDK said:
Are you going to ask for $60k every time you add a new coin? Tomorrow you add monero and you need $60k ? I highly doubt these costs are in any way realistic.
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No, tbh we aren't planning to add more coins just those who represent real use cases.

Estimating cost when coding come up, it is very hard thing to do. We know very well our project so we know how many hours will take, at the end of the day costs in software are very uncertainty at least we were doing some static page as WordPress. Why is taking so many hours, well we don't deploy anything that hasn't unit testing and integrated testing into the platform, sometimes you see more code on testing per se than regular code :D


RGXDK said:
It's clear to me that you're requesting us to subsidize work that you have to do anyway. Adding a coin is part of the job someone has to do in your company. What exactly are you offering the Dash network for $60k?
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I am against subsidizing too. But to be honest, we don't see like this. When we talk about traditional subsidize you expect that a central authority has enough accountability to assign other's resources to people that can or cannot do something positive in term of interest of the community that central authority represent. Instead what we are looking in Dash is a decentralized consensus in what, where and when resources will be allocated. Subsidize is giving free money to people that won't do anything for shareholders or community's interest.

In the other hand, we don't have any traditional investment (VCs, Institutions..etc) in our startup yet. We firmly believe that non-traditional business should be financed by a non-traditional method, it means we have a huge opportunity here to demonstrate dash governance system.

What exactly are you offering the Dash network for $60k?

1. Fast adoption in Venezuela.

2. Free market for DASH/VEF.

3. More volume and demand in Venezuela. Means prices volatility.


As you said, this is a job we have to do anyway, but it will be done when we can afford it down the line.

We are asking DASH to help speed up implementation so our timing goes in sync with the community build up that DASH is already funding in our country. We know the first thing people will ask when you tell them to use or accept DASH is where can I buy or sell this coin? Momentum may not be at it's best by the time we get the chance to work on integrating it in our Exchange.
 
The people of Venezuela are very interesting in Dash. We have several communities we open thanks to the work of people like @algodon.franelas in Dash Caracas. My self interest is posed in Dash, i work directly with many of this communities and many people always ask "WHERE I CAN CHANGE MY DASH INTO VEF?", we offer alternatives but always need the btc brige...

We need this proposal in Venezuela. No just one exchange, we need serveral exchanges. Colibit is a real good company and i belive that is the correct team to do this job.
 
Definitely a yes. This further supports the ecosystem that is being built in Venezuela. Hope to see this in the proposals next month.
 
Thanks to @Jahlexis Tafari Lugo and @ewok for the support.

I agree that this proposal is just the begining and DASH's ecosystem in Venezuela should have as many alternatives and companies involved as posible. And before someone says that having a place where people can dump DASH for fiat is a bad idea, let me clarify that Colibit is not selling and buying Bitcoin to people directly, nor we plan to do that with DASH, that is not our bussiness. In order for selling of DASH to happend in Colibit, there must be a counterpart willing to buy them. It is a free market. We don't set the price, people that buy or sell do. It's a two way street.

And by the way, I think we have the most competitive exchange fees in Venezuela.
 
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I don't get it, if no one wants the bolivar, why do you want to hold them? what will you do with all those bolivars you will end up holding?
 
GrandMasterDash said:
I don't get it, if no one wants the bolivar, why do you want to hold them? what will you do with all those bolivars you will end up holding?
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Because we are a Bolivar based economy. Wages are paid in Bolivars and very few are getting paid in cryptos (mosly miners, very few merchants, freelancers perhaps). Cryptocurrencies are mostly used as a store of value or even as an investment because most people when they think of cryptocurrency, they think about Bitcoin. They hold the coins for a while or trade with them and when they need to purchase something in Venezuela, they convert it back to Bolivars to spend it. It is not common to find merchants on the street that recieve cryptos because it isn't practical for various reasons:

1. Our economy has shrunk so badly that expenditures in Bolivars are very tiny compared to, lets say, the Bitcoin value. To give you an idea, 1 satoshi is now worth little over 2 Bs.
2. Transactions or confirmation times cannot be fast enough if you don't pay high fees. In Bitcoin even if you pay a high fee you still have to wait at least several minutes or hours depending on the network.
3. The blockchain fee can be a big part of the total value of the transaction. It doesn't make any sence to pay more in fees than the amount you're actually spending.

That is why we believe DASH is a much better solution if what we want is a cryptocurriency based economy in Venezuela.
 
Ronald Blanco said:
Because we are a Bolivar based economy. Wages are paid in Bolivars and very few are getting paid in cryptos (mosly miners, very few merchants, freelancers perhaps). Cryptocurrencies are mostly used as a store of value or even as an investment because most people when they think of cryptocurrency, they think about Bitcoin. They hold the coins for a while or trade with them and when they need to purchase something in Venezuela, they convert it back to Bolivars to spend it. It is not common to find merchants on the street that recieve cryptos because it isn't practical for various reasons:

1. Our economy has shrunk so badly that expenditures in Bolivars are very tiny compared to, lets say, the Bitcoin value. To give you an idea, 1 satoshi is now worth little over 2 Bs.
2. Transactions or confirmation times cannot be fast enough if you don't pay high fees. In Bitcoin even if you pay a high fee you still have to wait at least several minutes or hours depending on the network.
3. The blockchain fee can be a big part of the total value of the transaction. It doesn't make any sence to pay more in fees than the amount you're actually spending.

That is why we believe DASH is a much better solution if what we want is a cryptocurriency based economy in Venezuela.
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You missed what I said. What are YOU going to do with all the bolivars? I mean, I give you bolivars, you give me dash. Now you are the biggest holder of bolivars.. what will you do with it, being it's collapsing?
 
@GrandMasterDash now I get your question. As I mentioned in an earlier post:

Ronald Blanco said:
let me clarify that Colibit is not selling and buying Bitcoin to people directly, nor we plan to do that with DASH, that is not our bussiness. In order for selling of DASH to happend in Colibit, there must be a counterpart willing to buy them. It is a free market. We don't set the price, people that buy or sell do. It's a two way street.
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Colibit does not buy or sell cryptocurrency, our customers do, we only provide the market place and charge a fee for our services. People that want to buy meet up with people that want to sell and they do the exchange using our platform. Afterward they can order to withdraw their funds (Bolivars or Bitcoin).

We collect fees in Bolivars and Bitcoin. Bolivar fees are used for paying local operation and taxes. Bitcoin fees are used for paying for services outside Venezuela and is the main source of income.
 
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