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Re: Exchange for sale - Coinnext
by
coinnext
on 02/07/2014, 23:48:32 UTC
This auction is closed since the 22nd of June, the exchange as offered in OP is no longer available for sale. The source code stand-alone can still be purchased for non-exclusive use at a lower price in private, however we will never sell or auction this offer publicly after this point. Thank you all for the interest.
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Re: Exchange for sale - Coinnext
by
coinnext
on 23/06/2014, 16:16:48 UTC
As I've announced, no bids were received prior to 22nth, this auction is now closed
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Re: Exchange for sale - Coinnext
by
coinnext
on 20/06/2014, 12:35:27 UTC
I think closing it down would be a horrible waste, should just keep controlling interest in it and turn it over. If they do not run it up to par you can take it back over plain and simple. At least this way you have a chance to recoup your money instead of just kissing it good bye.


They lose money every month on it, closing down would be a sensible thing to do. More sensible would be to sell cheaper. Its better to get something than nothing.

And yes, the software etc is all worth more than the opening bid. Except that your buying a business, not a custom script. Thus you sell at what the business is worth, not what you paid for it

Your logic doesn't make any sense, you agree the software is worth more stand-alone, but that same software tested and running live/doing trades/having around 500 free visits daily/getting around 20 users daily is somehow worth less? On the contrary the software stand-alone would actually be worth less, although not by much as I've priced this auction very competitively already.
Also, we did not just buy a "custom script" as you suggest, I thought it was clear we are engineers by trade who made everything from the ground up and completely tailored to cryptocurrencies.
I think it's fair to say you are not interested AcoinLLC, you seem someone who invests in small businesses expecting a steady, mostly passive return. Running a financial exchange is obviously not something for you, it's a very serious project to take on I really want to warn people for that, this is really not something that can be approached like you do small businesses. We can argue all day about what you think is a fair price but it's really rather pointless.
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Re: Exchange for sale - Coinnext
by
coinnext
on 19/06/2014, 23:50:41 UTC
I understand where you are coming from.  It always sucks when you put a lot of time and money into something, only to find out it didn't work.  You still feel that it is worth a lot, even though, these things are worth what people will pay for them. 
I actually really like your site.  If your minimum bid were substantially lower, I would even take a flier on it myself.  But the fact is, this is highly speculative.  It is very unlikely to ever make any money no matter how much time\money is sunk into it, and as such there is no way it justifies the price you are looking for. 
At the end of the day, no one cares how much time or effort you spent on the business.  All we care about is the revenue (there is none), the brand (there is none) the customer base (there is none) and the market, which at the moment is super saturated and dominated by larger players. 
It has nothing to do with us being "cheap".  Don't take my word for it, just go over to places like flippa and see what businesses with no revenue and no customer base are worth to get a more realistic idea of what you have here. 

It does suck, but sadly we are quitting for different reasons, which remain private. If you suggest I'm pricing this irrationally, you are mistaken. I put the exchange up for auction here, just for the off chance that someone similar to us is/wants to build an exchange, he/she could save a hell of a lot of time while getting the best quality software he could ever wish for, professionally designed, tested and successfully running.

To clarify once more, I have no intends to sell for less, the price is beyond fair and if you don't see that, I'm sorry this is not for you. I know you will not change your opinion, so I won't even try to. I am not desperate to sell, and believe it or not, the main reason we want to is to avoid telling our users (we actually do have quite some already) they can no longer store their coins with us. We are already past the point that selling is actually much less work then shutting down.

Again, this auction will close on 22nd if no bid is received, and the site will shut down gracefully over a period of several weeks.
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Re: Exchange for sale - Coinnext
by
coinnext
on 19/06/2014, 22:49:21 UTC
I am going to lower the buy now price to 15 BTC. I think it's fair to say that there has been little interest so far from this community to run an exchange.
In addition, if the auction has not received an official bid before the 22nth, I will prematurely close down the auction and consequently take measures to shut down the service gracefully. After that the codebase is still for sale by PM, however non-exclusively and with no users/branding/marketing/servers.


Lower min bid, 10BTC is to high for the current market

The process of sealing the deal and transferring everything is not worth less than 10 BTC to me. I'm basically giving it away for 10 BTC, if that is too much for a buyer, it's just not a suited business for that buyer. Perhaps for the source code a lower price can be justified, but that is not on the table until this auction ends.

Its not worth 10BTC, you will likely be able to get a buyer(s if you decide to sell to multiple people) for the source code at a lower price

It is worth more, you know that is only 6000$ right, I'm not going to explain multiple times exactly why, just check my posts again and wether you agree or not, please respect my bid.
I do understand that this is a mixed crowd, a lot with very limited resources and only looking to make a quick buck, preferably on a passive income website. As I mentioned before, a project such as a financial exchange is obviously not for those. If I had the option to target only the resourceful and entrepreneurial members with this topic, I would, sadly that's not the way a forum works.
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Re: Exchange for sale - Coinnext
by
coinnext
on 19/06/2014, 20:52:29 UTC
I am going to lower the buy now price to 15 BTC. I think it's fair to say that there has been little interest so far from this community to run an exchange.
In addition, if the auction has not received an official bid before the 22nth, I will prematurely close down the auction and consequently take measures to shut down the service gracefully. After that the codebase is still for sale by PM, however non-exclusively and with no users/branding/marketing/servers.


Lower min bid, 10BTC is to high for the current market

The process of sealing the deal and transferring everything is not worth less than 10 BTC to me. I'm basically giving it away for 10 BTC, if that is too much for a buyer, it's just not a suited business for that buyer. Perhaps for the source code a lower price can be justified, but that is not on the table until this auction ends.
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Re: Exchange for sale - Coinnext
by
coinnext
on 19/06/2014, 19:17:14 UTC
I am going to lower the buy now price to 15 BTC. I think it's fair to say that there has been little interest so far from this community to run an exchange.
In addition, if the auction has not received an official bid before the 22nth, I will prematurely close down the auction and consequently take measures to shut down the service gracefully. After that the codebase is still for sale by PM, however non-exclusively and with no users/branding/marketing/servers.
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Re: Exchange for sale - Coinnext
by
coinnext
on 19/06/2014, 16:38:34 UTC
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 21:35:00 UTC
In regards to the OP:
Even with a few thousand in advertising and a good platform, and 0% fee's you are unable to get daily volume over a single bitcoin and change. Do you see why this is worrisome? Huge. Huge. Moneypit.

Well actually 70% of our traffic is free traffic that comes from coin communities such as this one, we chose to also have a certain budget for payed advertising, but that doesn't make it a moneypit, this is something that we were going to calculate and the future owner should as well, if an ad is ROI you keep it otherwise you don't renew it. Either way, current ads are all payed for and come with the sale.

About volume, I am not going to sugarcoat it, our volume is very low. But our sale price is priced accordingly low as well, I am not making any profit by this sale, so I'm not trying to "fool" anyone here. We either find someone to take it over or we will close it down.

To increase volume, the truth is that after 1 month in operation you can't expect more then what we currently have. Having 1700+ users deposited and trading on a bugfree platform, even if it's for satoshis, is an okay result for our first month.
I suspect it will take between 3-6 months to get to a point of decent volume. That is at least how long approx. other exchanges before us took (I monitored this a lot over the last 6 months).

We have had several days with volume nearing 4-5 BTC, a few even were we got to 10 BTC (certain coin launches and days when there was general a high volume on exchanges, basically when coin markets are bullish trading traffic increases/when bearish they drop). The total volume on the front page, if that is your source, resets every day.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 21:17:02 UTC
One thing to consider which im sure many of you haven't, what if the exchange gets hacked and a lot of funds go missing?

All those that join the group buy could be joint liable for the missing funds.

Wouldn't be the first or last time its happened.
1) You're not liable

2) Raise enough funds for a security audit of the code, and servers. As well as a crowdcurity campaign.

We actually already did all of that, we've also run an active crowdcurity campaign and payed a few hundred USD in bounties.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 19:39:49 UTC
Current volume is ~1.6BTC at day. Say they finally start charging fees, they would make ~$85 a month in fees. Thats a net loss of $415 from just server fee's alone. Your in the hole right off the bat.

I actually got an email from a pretty awesome Bitcoin hosting provider, asking us not to sell and willing to give us free hosting of all our servers to allow us to continue growing without constraints, really a very attractive offer. I think they might be willing to do the same for the buyer so I can always refer the buyer to them.
However if $400 per month is a scary lot for you, this might not be the best project to take over, this is really not just a website but a real startup.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 19:33:56 UTC
It looks like they do, they got a chatbox and there is chatter.

I am more concern with how many of those users have deposited money on the service and are using it.

Currently exactly 1,729+ registered and email verified users. (Note how when I posted this topic less than 24h ago, we only had 1600ish).
Over 90% of those users have deposited coins.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 19:31:14 UTC
They have 0 marketing from as far as I can tell to, so the name is really not worth much.

We actually have been very active marketing wise. We have several advertising campaigns (around 20) running and already pre-paid for (probably around 2K USD total). Around 30% of our visitors are coming through some kind of payed campaign, so that's actually quite reasonable.

A few that pop to mind (there are many more)
cryptocoincharts.info
cryptocointalk.com
altcoincalendar.info
cryptocoinsnews.com
coinmarketcap.com

We've partnered with coin developers and have given away around 1-2 BTC worth of free comps. That's a major acquisition channel as well.
We also have been highly active on twitter since day one, and have currently 331 genuine followers.

Most of the marketing we did however is free. We are currently visible in every community of each coin we have in our market (bitcointalk/reddit/twitter/forum/cryptocointalk).

There is probably more I forget to mention now, but the baseline is that on the contrary we have been highly active in the marketing departement.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 12:51:07 UTC
A few questions:

1) What is the process to add another coin on the exchange?
2) How is the wallet security being handled?
3) What development skill is needed? What framework is the platform written on?
Thank you

1) You would need to compile the coin from its github source, this is technically not so hard but requires a small learning process, it could also easily outsourced by anyone. After that put the wallet on our server and we have made a script that easily adds the markets and necessary variables everywhere. Although we made it as easy as possible, this is still something that I strongly advice a developer does however.
2) Our coin wallets are divided over 3 separated servers, high value coins like BTC and LTC reside on one, while brand-new untested coins reside on another. Only the trading engine can access these wallet servers, and only the front-end server can access the trading engine.
We keep over 90% of funds in cold storage, for BTC we use Armory for that. We have a fraud-checker in place that will scan every withdrawal request for abnormalities and block the payout for manual processing if need be. Basically we have covered every trick in the book to maximize our user funds safety.
3) The platform is written on Node.js using Express. A developer with sufficient knowledge of javascript would be necessary to develop new features.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 11:59:41 UTC
Any current revenue figures?

We have a 3 month promotion to charge 0% fees ongoing. So no revenue is currently made.

50 BTC for no revenue... how did you come up with that validation?

Write 100 skilled developers / developer companies (not off-shore, the quality they can provide is just not sufficient for a financial exchange that is supposed to hold up to millions of user funds) and ask for a quote of a project similar that we have. Let me know the average quote price.

Optionally, you can also add the price of the security team we hired (and every exchange should) to completely audit our app. The price of the custom branding / UI if you were to hire someone for that, I can continue.. We are also beyond a software project, we are a brand that is out there in the market, live and successfully trading for over month, which is the best proof of concept you could ask for to judge software.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 11:44:34 UTC
Good job scaring away potential customers. I wish you luck upon finding a daring investor to invest in a business with a record of 0 returns. Nice. 2btc daily volume, yet you expect it can easily rise 500x by "adding new coins aggresively" which would result in you also being accused of adding scam coins which in turn leaves a bad reputation which in turn reduces users which in turn reduces volume and so on and so on. Good luck, seriously youre gonna need it.

How did I scare customers away? I've been nothing but straight forward. I never said it's easy to rise 500x, kind of lame of you to claim that, and I dare you to quote me on that. I said it's doable and that the best way we found to grow the site, ROI wise, is adding new coins aggressively. Then on top you proceed to make your own future projections based on nothing but your instinct. I'm sorry but if there is someone scaring "customers" away it is you with FUD.
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Re: [ANN] Coinnext.com - Cryptocurrency Exchange - Trade Alt Coins
by
coinnext
on 18/06/2014, 11:28:27 UTC


Hi

As you can imagine it's quite the overhead to manage 70+ coins, so sorry that we couldn't get back to you after a few hours of you contacting us (we did respond within 24h). The truth is we had a lot of trouble with the DIEM wallet, our initial (but wrong) conclusion was that it was the old version, which I communicated as such. After further investigation the problem was wallet related and it did not sync the blockchain properly. We downloaded the QT, loaded our priv keys in there, and manually tried to send you the transaction. It worked.
After 2 emails, one of which I asked you your DIEM address to send it back, not "much complaining" was necessary at all to get your DIEM back.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 04:04:26 UTC
Really like it, but at 10btc thats outrageous. You guys kvervalued yourselves

Are you serious? 6000 USD? You know we charge 400 USD/day to develop/design for our clients? You know creating a platform such as we currently have will take you at least 3 months and probably more towards 6 months. On top ours is tested by several security firms and above all has been live and trading for 1 month successfully. If you don't think that is worth 6000 USD at the minimum, you are overvaluing your intelligence.

It's not like we are the last exchange ever in existence. There are many entrepreneurs who do have the time and resources to follow up on an exchange project. For them this is an absolute steal.
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Re: Exchange for sale - Coinnext
by
coinnext
on 18/06/2014, 03:49:38 UTC
Any current revenue figures?

We have a 3 month promotion to charge 0% fees ongoing. So no revenue is currently made.

Ouch. To risky for me to consider, would be in the hole nearly 10k by the time you could even start making revenue, and Im assuming this part, "Total Volume:1.6504 BTC
Total Trades:5705"
is lifetime trades, because when I checked a couple hours ago it was 5703 trades.

Site looks very nice, just I can't see it making a profit. Say you charge a .15% fee each way (like mintpal), so .3% on every transaction, and you get 1000BTC a month in volume (~605x current volume), that would be 3BTC generated in fees. After server fees, your down to ~2BTC, which doesn't leave much for hiring white hatters and marketing.

I love the way the site looks, just can't see it turning a profit  Undecided

Goodluck selling!

The site could currently easily handle 1000 BTC per DAY volume, it's even really doable to reach that amount (mostly by adding new coins aggressively).
1000 BTC per month would be only 33 BTC per day, that is not so much. I think our pricing is very reasonable and inline with what we offer. For the right entrepreneur this is a very good deal. If you are looking for a passive income site, indeed, this is not for you.



The software might be able to handle 1000BTC per day, and no, its not doable at this stage in the game. There are many exchanges, yet mintpal, bter, and cryptsy have managed to control nearly the entire marketshare. Its not realistic to assume to 1000BTC. Any new BTC based exchanges realistic customer base will be that of pump & dumps.

Again, wish you best of luck, but when your selling a business it doesn't matter what it could do, it matters what it does bring in

Again, what it brings is clearly outlined in the original post. I priced it appropriately to what's outlined there. If it would be at the point of 1000 BTC per day, it would not be for sale for starting from 10 BTC. I also clearly stated for you once again that this is not intended as a passive income website and valuing it as such is just idiotic. This is a project for a bitcoin entrepreneur who has the resources and time to follow up on the startup journey.

We had a great start and we have great running platform; that is what's for sale. I'm not selling a 1000 BTC/day business here, I think that is pretty clear to almost everyone here.
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Re: Exchange for sale - Coinnext
by
coinnext
on 17/06/2014, 23:23:13 UTC
Any current revenue figures?

We have a 3 month promotion to charge 0% fees ongoing. So no revenue is currently made.

Ouch. To risky for me to consider, would be in the hole nearly 10k by the time you could even start making revenue, and Im assuming this part, "Total Volume:1.6504 BTC
Total Trades:5705"
is lifetime trades, because when I checked a couple hours ago it was 5703 trades.

Site looks very nice, just I can't see it making a profit. Say you charge a .15% fee each way (like mintpal), so .3% on every transaction, and you get 1000BTC a month in volume (~605x current volume), that would be 3BTC generated in fees. After server fees, your down to ~2BTC, which doesn't leave much for hiring white hatters and marketing.

I love the way the site looks, just can't see it turning a profit  Undecided

Goodluck selling!

The site could currently easily handle 1000 BTC per DAY volume, it's even really doable to reach that amount (mostly by adding new coins aggressively).
1000 BTC per month would be only 33 BTC per day, that is not so much. I think our pricing is very reasonable and inline with what we offer. For the right entrepreneur this is a very good deal. If you are looking for a passive income site, indeed, this is not for you.