UK-based cryptocurrency exchange Coinfloor says it’s time for intermediaries selling bitcoin to stop misleading retail investors.
According to the exchange’s chief executive, Obi Nwosu, retail investors wanting to experience what he calls ‘the biggest revolution in money in centuries’ are often scared to try and access bitcoin because of the risks of exchange hacks, scams or risky trading schemes.
Instead, says Coinfloor, retail clients should be able to access the cryptocurrency via easy-to-use products that are designed to take the drama out of buying bitcoin.
Coinfloor says that in March it will be launching a new ‘auto-buy’ service for retail clients wanting to buy bitcoin on a regular basis, available to anyone with a minimum of £10 to invest.
“Clients are able to send payments on an ongoing basis to their unique auto-buy details, where the funds will be converted into bitcoin at the market rate and added to their holdings,” the exchange told New Money Review.
In 2019 Coinfloor decided to go bitcoin-only and stop trading in other cryptocurrencies, citing its desire to offer to its own customers only what it would invest in itself.
Nwosu recently gave an extended interview to New Money Review, explaining the thinking behind this move.
“Too many of our peers provide questionable, complicated and dishonest services to try and exploit novice consumers,” the Coinfloor CEO said in a press release announcing the exchange’s new retail initiative.
Coinfloor says it will also be launching what it calls a ‘no BS’ education guide to cryptocurrencies, as well as securing retail investors’ bitcoin holdings through its monthly bitcoin audits.
The exchange recently published its 71st successive monthly solvency report, proving via a cryptographic signature, recorded on bitcoin’s blockchain, that it held a total of 3,683 bitcoin (worth around $3.7m) on behalf of clients as of February 17.
This week a cryptocurrency exchange called FCoin said it was insolvent and revealed that up to $130m of bitcoin was missing.
The FCoin crash adds to a long list of cryptocurrency exchange failures involving disappearing client funds.
“Our goal is to give everyone in the world a way to access and learn about bitcoin and its benefits, minus the industry BS,” said Nwosu.
“It’s important to educate people about crypto in clear language and reduce the complexity that’s prevented widespread adoption and stopped bitcoin from fulfilling its incredible potential.”
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