Dear BTER Staff
I am writing to you on behalf of the lead developer of "Sexcoin".
It appears SXC, despite it's successes has not been taken seriously in the Altcoin community, however it is gaining attention outside of it , with investment from people new to alternative currency, and particularly with investors from the Adult Entertainment Industry. It recently has been mentioned by the Washington Post, International Business Times, and CNNMoney, for example.
The development team believe that this is because SXC has a clear purpose, with a clear business model that is not appreciated within the community, but is obvious to those outside it.
Statistics show that the Adult entertainment Industry has an annual global turnover of 96 billion dollars, with 28,258 internet users viewing adult material every second which is essentially digital goods. These goods are generally worth little per item, which makes industry the eminently suitable for adoption of the microtranactional business model.
When you consider a real world good, such as a pizza, it requires a time sensitive delivery. At the point of delivery traditional payment methods such as fiat, EFTPOS or cash are not only well established but preferable to the merchant as the volatility of cryptocurrency can lead to significant losses and pose significant risk. For these reasons cryptocurrency provides no advantage, high risk and is unlikely to be adopted as more than a gimmick.
In the case of cryptocurrency gaining wide spread adoption for Digital Goods in the Adult Industry, not only is there reduced risk of accepting payment despite market volatility because the goods are virtual, but the industry has struggled with traditional payment methods. The use of credit cards has left the industry open to "friendly fraud" whereby customers charge back payments and "unfriendly fraud" whereby stolen credit card details are used as payment to check their validity.
With banks chargeing fees to the content provider when this occurs, the Adult Industry is essentially high risk and has had difficulty with banks refusing to help them in their commerce.
The industry has in some cases adopted Bitcoin as cryptocurrency because it eliminates this problem entirely, however while SXC has not been crafted as a global currency for all transactions and cannot compete with Bitcoin in this purpose, It has been designed and branded specifically for this niche, and out performs and can out compete Bitcoin within it.
SXC is not designed for speculation as a digital commodity and does not depend on rarity for value. It is designed for commerce with enough coins being generated to make it affordable per unit and more easily obtained by the consumer.
It's block time allows transactions to be confirmed within six minutes, which is quick enough to be used within the industry, but slow enough to carry commerce and allow transactions to be propagated throughout the network.
Finally, because of low or nonexistent transaction fees, it allows the content provider to adopt a microtransactional business model and charge for items individually.
The micro transactional business model has gained adoption by other entertainment industries and is credited with reviving them and helping to combat piracy. Purchasing a song from itunes, an item in Farmville, or a single mainstream movie are all examples of this model in action.
Presently, and due to the recent exposure of SXC, there is a developer who has been in contact with, but is separate from SXC's development team, with experience and software for processing credit card payments developing a straight USD/USD payment method.
Developers have also noted the appearance of
http://sexcoinbank.com/From the approaches and discussions with investors involved in the adult industry, there is little doubt in the developers minds that SXC will be successful once these projects are completed.
The difficulty developers presently face is lack of presence on exchanges in the interim.
SXC is presently listed on CoinEX.pw in a BTC/SXC trade pair, however the exchange lacks traffic and appears not to have working API's. It is also listed on Cryspty, however it is listed only in a SXC/LTC trade pair. The Operations Manager has been approached, however seems recalcitrant to allowing SXC to be traded against BTC.
SXC does carry approximately 20 merchants. The development team have identified a further 59 merchants in SXC's niche who accept bitcoin and are likely to adopt sexcoin. Unfortunately the lack of a BTC/SXC trade pair on a well known reputable, reliable exchange has caused compliant with existing merchants, and we are loathe to move forward until this has been addressed.
So the question is, will BTER consider adding SXC to the exchange against BTC ?
SXC is rapidly becoming a "serious" alt, and will eventually come into it's own, regardless, once sufficient payment processing infrastructure is developed. The developers are aware of the usual tactics used by coins to gain a listing, including bribery to convince people spam exchanges and create a false image of popularity.
The SXC development team are busy with the process of real development, and do not wish to waste the BTER's staff time either. We hope an honest and logical outline of SXC's prospects will convince them of the worth of the coin.
We look forward to an honest and definitive answer.
Independant Sources:
Adult Industry Payment Problems:
http://www.coindesk.com/bitcoin-could-be-a-boon-for-porn-and-other-high-risk-merchants/ Adult industry Statistics (2006)
http://www.familysafemedia.com/pornography_statistics.html Mainstream Media:
http://www.washingtonpost.com/blogs/the-switch/wp/2013/12/26/dogecoins-and-litecoins-and-peercoins-oh-my-what-you-need-to-know-about-bitcoin-alternatives/http://www.ibtimes.com/how-make-money-bitcoin-wild-west-digital-currency-1507660http://finance.fortune.cnn.com/2013/12/24/bitcoin-altcoin-cryptocurrency/?section=magazines_fortune
