Bitcoin Marketplace Buttercoin Folds Despite $1.3 Million Investment

[bryant.coleman]

buttercoin is this story by any chance from the 1st of April

Unfortunately not. The investors were either extremely careless or stupid to pour in so much money in to a venture which lacked solid credentials. But in the end, the reputation of Bitcoin suffers.

[Bitcoinpro]

buttercoin is this story by any chance from the 1st of April

Unfortunately not. The investors were either extremely careless or stupid to pour in so much money in to a venture which lacked solid credentials. But in the end, the reputation of Bitcoin suffers.

its fake man think about it, their is many of us for rich people to contact and do business with

and if they where to have just purchased 1 million of BTC or LTC and rip it from the exchange into

wallets it would cause a significant enough price swing upwards to make them profit

[sangaman]

It's a shame, I used this exchange a bit and really liked the interface and some of their blog posts, but they never really seemed to attract much volume. I'd speculate they were partly overshadowed by other new US exchanges like Coinbase.

Agreed. But I never saw any promotions by them to attract new users. Even here in Bitcointalk, I hardly ever say any of their offers or discounts. Accept the truth. These guys were not interested in running the site. Their intentions were something else.

There were definitely promos but perhaps they weren't advertised well enough. They had a referral program with signup bonuses, as well as no fee trading (which was slightly misleading as there was still a fee on the bank transfer to fund your account).

[ChuckBuck]

Believe it or not, this is the first I've heard about Buttercoin.

Sucks, because like others are saying, it's a further stain on failed Bitcoin ventures that never met their promise.

Somehow, I think whoever came up with the name, deserves a big smack upside the head.  Buttercoin!  Sounds like another shitcoin to be perfectly honest...

[bryant.coleman]

There were definitely promos but perhaps they weren't advertised well enough. They had a referral program with signup bonuses, as well as no fee trading (which was slightly misleading as there was still a fee on the bank transfer to fund your account).

There were referral programs, but as you have already posted, they were not used in a meaningful way. Should have done something better.... like zero-fees on deposits and withdrawals for a limited time period.

[Lorenzo]

I don't get it. How could an exchange burn through $1.3 million in four months? That's almost $4 million a year. Why does a four month old exchange with zero customers even need $1.3 million in the first place? An exchange that isn't used much shouldn't have high server or operating costs. And advertising on established Bitcoin news sites like CoinDesk and running a sig campaign shouldn't cost anywhere near this amount either.

Facebook was able to prosper despite probably having less than 1/10th the amount these guys had in their first four months:

Facebook was initially incorporated as a Florida LLC. For the first few months after its launch in February 2004, the costs for the website operations for thefacebook.com were paid for by Mark Zuckerberg and Eduardo Saverin, who had taken equity stakes in the company. The website also ran a few advertisements to meet its operating costs.

This is what Google's servers looked like four months after it was launched in 1997:



Sure doesn't look like $1.3 million to me.