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Offline starspirit

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Coinapult Wallet with Locks - views?
« on: October 01, 2014, 11:48:34 PM »

Another contender for the role of removing crypto volatility and allowing switching between other currency exposures like USD and gold. Has recently received VC funding.
see...https://coinapult.com/locks/info

I'll start discussion with the following views:

Pros:
i) simple to understand and to access, especially for mainstream, and for small business[/li][/list]
ii) appealing options to lock in and out of a broad range of assets[/li][/list]
iii) spreads should be usually reasonable given Coinapult is accessing liquidity in major exchange markets

Cons:
i) counterparty risk with Coinapult, a small and unknown entity (even though Coinpault holds reserves, this is not transparent, and they might mess something up).
ii) user has no collateral protection (BTC are transferred to Coinapult and nothing in return)
iii) spreads are high enough that frequent switching between assets is still very costly

Even though there are risks, which may be borne out later, I think this will find some appeal in the market. Thoughts?

Offline bitmarket

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Re: Coinapult Wallet with Locks - views?
« Reply #1 on: October 02, 2014, 01:21:04 AM »
I think this is an important step for bitassets.   I think we need a locks like website sitting on top of bit assets.

The problem with locks is you cant spend your market pegged assets..  you have to switch out back to bitcoin.

In a short amount of time, they will make that very seemless for sure, but I think there is an advantage in being able to take out the crypto stable asset. 

The guys behind Locks are all big time Libertarians.  They would love a decentralized solution to integrate with.   
The pitch to Locks/Coinapult would be it helps them protect customers funds.  the private keys of the customers funds remain with the customer. 

Better/safer for customers
better/safer for coinapult
more resiliant a business model

Roger Ver an investor is all about keeping the private keys in the hands of customers.

Anyone know them personally?
« Last Edit: October 02, 2014, 01:25:01 AM by bitmarket »
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Offline URSAY

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Re: Coinapult Wallet with Locks - views?
« Reply #2 on: October 02, 2014, 02:00:40 AM »
Coinapult isn't exactly new.  They facilitated BitInstant transactions for quite a while.  Friendly peeps.

Offline Method-X

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Re: Coinapult Wallet with Locks - views?
« Reply #3 on: October 02, 2014, 04:45:28 AM »
I heard a rumour that Circle.com will be implementing a similar feature.

Can someone explain how Lockes achieves its peg?

Offline bitmarket

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Re: Coinapult Wallet with Locks - views?
« Reply #4 on: October 02, 2014, 04:58:22 AM »
From memory its just a centralized exchange.  There are customers on the other side taking the bet.....  but that is from memory only.  no firm details.
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Offline Method-X

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Re: Coinapult Wallet with Locks - views?
« Reply #5 on: October 02, 2014, 05:56:50 AM »
From memory its just a centralized exchange.  There are customers on the other side taking the bet.....  but that is from memory only.  no firm details.

Just did some research. It's basically a more cost-effective and somewhat safer implementation of e-Gold. It provides stability at the expense of centralization. They operate everywhere except the U.S. because of regulatory concerns. So it appears this type of solution isn't a threat to BitUSD.

Offline starspirit

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Re: Coinapult Wallet with Locks - views?
« Reply #6 on: October 02, 2014, 09:07:36 PM »
From memory its just a centralized exchange.  There are customers on the other side taking the bet.....  but that is from memory only.  no firm details.

Just did some research. It's basically a more cost-effective and somewhat safer implementation of e-Gold. It provides stability at the expense of centralization. They operate everywhere except the U.S. because of regulatory concerns. So it appears this type of solution isn't a threat to BitUSD.

On your question about how they maintain the Locks, according to the FAQ they hedge themselves by buying the asset (or presumably derivatives of) and holding these in reserve. But whether they are fully reserved or not is not stated. On your comment on operations, Bitshares caters to a global market, so they are a competitor aren't they?

 

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