According to a recent report from NewsBTC, Cointed is a company that “places its main attention on the connection of the analog to the digital cryptoworld.” Indeed, Cointed has made strides in making the intangible, abstract world of Bitcoin and other cryptocurrencies much more accessible to the average user. The method? The creation of crypto ATMs.
So far, Cointed has installed 100 ATMs across four countries in Europe. The Cointed exchange, which has been up and running for several years, supports more than 15,000 users. Additionally, Cointed owns and operates two 400GH/s crypto ‘mining farms’ in two separate countries. The ATMs support the buying and selling of Bitcoin, Ethereum, and several altcoins, including Dash. Cointed also offers a debit card to its users.
Cointed’s ICO, which began on October 20th, is currently underway. Holders of the CTD token will reportedly have access to lower Cointed ATM fees.
Cointed’s Analogue Platform Allows for Lower Fees than Industry Average
Cointed is well-positioned to gain greater footholds in the European market, but it is far from being the largest or most well-known manufacturer of Bitcoin ATMs. Genesis Coin currently operates 44.4% of all of the Bitcoin ATMs in the world; according to a report from the Merkle released earlier this year, the company has manufactured more than 500 functioning ATMs.
Israel-based Lamassu is also at the forefront of the worldwide BTC ATM industry, as it was the first company to invent ATMs that could instantly convert fiat to BTC and vice versa.
The thing that Cointed may have on its competitors is its low fees. Cointed is responsible for the manufacturing, installation, and maintenance of its own ATMs. Although geographic location certainly presents an obvious barrier to some hopeful Cointed users who may be located too far away from any Cointed ATM locations to use them, those who are able to access Cointed ATMs enjoy the benefits of lower fees.
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The method of horizontal integration utilized by Cointed has the practical effect of reducing the costs associated with paying a third-party company to keep ATMs running, which allows Cointed to charge between 2.5 – 4.5% to buy and 1 – 3% to sell Bitcoin, while the industry average sits somewhere around 8% to buy and 4% to sell.
There are several other factors contributing to Cointed’s ability to keep costs low. In addition to the fact that Cointed runs its own exchange, Cointed ATMs have been equipped with the company’s own API. Additionally, Cointed’s central servers are reportedly very well-maintained with an efficient cooling system that keeps maintenance costs low.
Crypto ATMs: A Growing Trend?
Cointed is not the first company to conceive of or implement the concept of a cryptocurrency ATM. In fact, the first Bitcoin ATM appeared in Vancouver, Canada, in 2013. It was installed by Robocoin, which ceased all operations last year.
The United States saw its first publicly available Bitcoin ATM in 2014 in Albuquerque, New Mexico; since then, more than 800 Bitcoin ATMs have been spread across dozens of cities in the United States. According to a Boston Globe report that was released in mid-July, fees at some US Bitcoin ATMs can be as high as 16%.
Hopefully, usability need not always come at such a high price. The fact is that fair pricing and user-friendliness must work in tandem with each other in order to really bridge the gap between the esoteric world of cryptocurrency and the world of ‘traditional’ financial systems. ATMs, as a familiar part of the daily lives of people in much of the world, are a great place to begin. If Cointed can manage to continue its trends of efficiency, low-costs, and ease-of-use, it may be onto something.