[HAVELOCK] Dealcoin Official Thread

[worldbridger]

I see. This is every interesting, I really don't like how the current prices are fixed on things like Bitcoin-OTC or Localbitcoins (especially if based on Mt.Gox obviously).

Thanks pankkake

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[BitHub]

I dont know i actually think its a pretty decent valuation, compared other clowns giving themselves 11 million, 20 million dollar valuations. 150k ish isn't tooo bad. 40% going to share holders is nice.

[freedomno1]

An interesting IPO for the amount of risk and growth potential.

What is your execution strategy?
Such as your ad campaign: The way you will address your target market and how you will penetrate that market and raise your brand awareness as well as what differentiates you from the competition.
Examples: Banners, advertisement's, youtube videos, mascots, business cards, reputation system etc.

[worldbridger]

I don't think Havelock is any less reputable than any other exchange. They seem to be quite responsive and are building a nice portfolio.

I haven't gotten too far into the details of this IPO, but I'm surprised at the size of the float. Wouldn't DealCoin be better off self funding, or raising 500BTC privately, and going public once there's a viable business with revenue?

This really seems like more of a seed stage investment, and to compete, aren't you going to need far more capital later on?

Hello Pale Phoenix,

You are correct this is a seed stage investment, I am fully aware that the term IPO is traditionally associated to a later stage 'exit' type of offering but for most of bitcoin startups listing on Havelock or other exchanges IPO rounds are basically seed-stage fund raises. I agree I could have done some private funding and gone public later. But the IPO also gives DealCoin exposure to the bitcoin community, such as in this thread which greatly helps me in explaining Dealcoin. Re. later funding, Dealcoin is part of Seedcoin, a bitcoin startup virtual incubator in which I am involved and I intend to get some funds and other services via Seedcoin for the development of Dealcoin.

[radiumsoup]

<stuff>...</stuff>
I know this was rather long-winded, sorry - but I do have a specific purpose in saying all of this.

On top of the reputation feature, DealCoin offers an additional feature to enable its members to find out more about unknow dealers; we call it Need-to-know Privacy. We encourage dealers to link their account to up to 4 different social network profiles from LinkedIn, Google+, Facebook or Twitter. This private information is made available only to members about to trade with a dealer. Prior to accepting a deal, our members may choose to connect with and get to know a dealer via their social network of choice. The most transparent dealers will probably be the most requested ones.

Additionally we are planning to launch a series of premium services to add additional layers of security for our members, starting with a BTC escrow service in November 2013.

As for price fluctuations taking place while the payment takes place, I understand this may be an issue for active speculators like day traders. For such speculators, soon-to-be regulated exchanges like Mt Gox would be the place where they maybe able to turn around quickly. I suspect most of the dealers on DealCoin (and LocalBitcoins) would probably also have an account with Mt Gox or one of their competitors. But in my opinion, Bitcoin is useful for more than just day traders. Consider people travelling in foreign places who prefer using bitcoins instead of carrying cash or travelers cheques. Upon arrival in their travel destinations, they probably won't have access to a local bank account to connect to Mt Gox. Consider also the unbanked who do not have access to a bank account and may wish to participate in the Bitcoin economy or may wish to sell bitcoins sent to them by family members abroad. We are still in the early days of Bitcoin and as more people recognize the benefits of this currency, some will be guided to use regulated exchanges while some will choose to use services like DealCoin.

The primary purpose of that long rant I posted was to see how you'd respond, really - it was more to gauge your professionalism in a response, and to see if those (relatively simple) questions had been thought through before you brought this to market; it was only a secondary goal to get actual answers. A lot of recent IPOs seem to be rather hastily thrown together with a good idea but very shallow implementation plans; this was my attempt to flush you out if this was the case here. I'm rather pleased with your response, it does a lot for your credibility in my mind. Thanks.

[worldbridger]

I dont know i actually think its a pretty decent valuation, compared other clowns giving themselves 11 million, 20 million dollar valuations. 150k ish isn't tooo bad. 40% going to share holders is nice.

Hi BitHub,
Thanks for the comment.
IMO the IPO offers a great opportunity for members of the bitcoin community and of our site to benefit from DealCoin's future success.

[worldbridger]

An interesting IPO for the amount of risk and growth potential.

What is your execution strategy?
Such as your ad campaign: The way you will address your target market and how you will penetrate that market and raise your brand awareness as well as what differentiates you from the competition.
Examples: Banners, advertisement's, youtube videos, mascots, business cards, reputation system etc.

Hello freedomno1, we don't have a mascot yet
DealCoin will be using various online as well as offline channels to advertise its services. Please understand that I cannot divulge the details of our marketing strategy or execution plan on a public forum. You will find more info on the IPO prospectus available at http://www.dealco.in/havelock

[bobboooiie]

So, I didnt quite get how dealcoin is producing any revenue ?

[worldbridger]

The primary purpose of that long rant I posted was to see how you'd respond, really - it was more to gauge your professionalism in a response, and to see if those (relatively simple) questions had been thought through before you brought this to market; it was only a secondary goal to get actual answers. A lot of recent IPOs seem to be rather hastily thrown together with a good idea but very shallow implementation plans; this was my attempt to flush you out if this was the case here. I'm rather pleased with your response, it does a lot for your credibility in my mind. Thanks.

Thank you radiumsoup

[worldbridger]

So, I didnt quite get how dealcoin is producing any revenue ?

Hi bobboooiie,
DealCoin revenues are generated from:

Dealer Membership Fees
Dealcoin charges dealers an upfront membership fee on a monthly basis. 
Dealers are able to buy multiple months at once in order to reduce the average monthly fee.

Escrow Service Fees
The upcoming optional escrow service carries a 1% fee of the transaction amount.
The escrow service fee is to be paid by Bitcoin buyer only.

SMS Notification Service Fees
The upcoming SMS notification service will enable dealers to quickly react to new orders from DealCoin members
The service fee will vary based on mobile operator and location of message recipient.

Voice Meeting Service Fees
The upcoming voice meeting service will enable dealers to speak with our site's members without exchanging phone numbers.
The service fee has been tentatively set around 0.03 BTC/month. Final fee rates to be determined.

For more info, please refer to our IPO prospectus available at http://www.dealco.in/havelock

[freedomno1]

An interesting IPO for the amount of risk and growth potential.

What is your execution strategy?
Such as your ad campaign: The way you will address your target market and how you will penetrate that market and raise your brand awareness as well as what differentiates you from the competition.
Examples: Banners, advertisement's, youtube videos, mascots, business cards, reputation system etc.

Hello freedomno1, we don't have a mascot yet
DealCoin will be using various online as well as offline channels to advertise its services. Please understand that I cannot divulge the details of our marketing strategy or execution plan on a public forum. You will find more info on the IPO prospectus available at http://www.dealco.in/havelock

Just testing I like your response and now I honestly am curious what your mascot will be

Follow up question: I see your model being viable but what is your return incentive.

If your company sells a product to trade bitcoins with other people face to face, then what is to stop them from trading with the same people after a successful trade the first time they use the service. By using the services that you have provided they can do another trade and lower their own personal costs by trading with the same person again, basically I am asking if the models core user-base will be constantly required to add new users and how your company would plan to address this type of scenario. Or if you consider the ability of sellers constantly looking for new customers to be an incentive to keep an account over the long run.

That aside, I do see the viability of taking a one time upfront fee to use the service in order to access your database of users but I am curious on how you plan on expanding that built up userbase without needing to talk specifics about the execution strategy over the longer duration.

[Pale Phoenix]

Hello Pale Phoenix,

You are correct this is a seed stage investment, I am fully aware that the term IPO is traditionally associated to a later stage 'exit' type of offering but for most of bitcoin startups listing on Havelock or other exchanges IPO rounds are basically seed-stage fund raises. I agree I could have done some private funding and gone public later. But the IPO also gives DealCoin exposure to the bitcoin community, such as in this thread which greatly helps me in explaining Dealcoin. Re. later funding, Dealcoin is part of Seedcoin, a bitcoin startup virtual incubator in which I am involved and I intend to get some funds and other services via Seedcoin for the development of Dealcoin.

Thanks for the response, and the marketing / exposure angle does make sense. We can use as many outlets to trade BTC as possible, so I wish you great luck, and I look forward to future ideas coming out of your incubator.

[worldbridger]

Just testing I like your response and now I honestly am curious what your mascot will be

Follow up question: I see your model being viable but what is your return incentive.

If your company sells a product to trade bitcoins with other people face to face, then what is to stop them from trading with the same people after a successful trade the first time they use the service. By using the services that you have provided they can do another trade and lower their own personal costs by trading with the same person again, basically I am asking if the models core user-base will be constantly required to add new users and how your company would plan to address this type of scenario. Or if you consider the ability of sellers constantly looking for new customers to be an incentive to keep an account over the long run.

That aside, I do see the viability of taking a one time upfront fee to use the service in order to access your database of users but I am curious on how you plan on expanding that built up userbase without needing to talk specifics about the execution strategy over the longer duration.

These are good questions freedomno1.
While it is true that 2 people meeting on the site may decide to stay in direct contact with one another, we must take into consideration the fact that a particular dealer may not always have the best buy/sell prices at all times. Imagine when a dealer is running out of BTC, his/her sell price would not be low. Similarly if a dealer expects a market slump or a correction, he/she may not wish to offer a high purchase price during that period. Not all dealers run out of BTC at the same time; not all dealers have the same market forecast...
So as far as regular members are concerned, it will always be in their best interest to place an order on the site (free of charge) to make sure they always get the best prices from all the dealers. IMO most members will want to do so. There is a strong incentive for dealers to continue paying for our services if they wish to continue receiving offers from members with whom they have dealt with in the past and from those with whom they haven't. 
Furthermore, as more people realize the benefits of using bitcoin, more people will join our site. Since we are still in the early stages of bitcoin, I expect a regular stream of new members from all corners of the world for a long while

[worldbridger]

Thanks for the response, and the marketing / exposure angle does make sense. We can use as many outlets to trade BTC as possible, so I wish you great luck, and I look forward to future ideas coming out of your incubator.

Thank you very much, Pale Phoenix

[xchrisxsays]

Furthermore, as more people realize the benefits of using bitcoin, more people will join our site. Since we are still in the early stages of bitcoin, I expect a regular stream of new members from all corners of the world for a long while

This is a very good point. Good to get in the competition early so when an influx of investors come, you're ready. I definitely like the long-term viability of this website, so long as you can survive the original perhaps low traffic. Good luck! I will be investing on Tuesday

[worldbridger]

Furthermore, as more people realize the benefits of using bitcoin, more people will join our site. Since we are still in the early stages of bitcoin, I expect a regular stream of new members from all corners of the world for a long while

This is a very good point. Good to get in the competition early so when an influx of investors come, you're ready. I definitely like the long-term viability of this website, so long as you can survive the original perhaps low traffic. Good luck! I will be investing on Tuesday

Thank you very much 

[freedomno1]

Furthermore, as more people realize the benefits of using bitcoin, more people will join our site. Since we are still in the early stages of bitcoin, I expect a regular stream of new members from all corners of the world for a long while

Thanks for the good and honest reply.
Bitcoin is still in it's early stages and this year is for retail development having a service available in the market before future competitors arrive will be a distinct advantage.
I will also be investing on Tuesday best of luck on your IPO.

[worldbridger]

Thanks for the good and honest reply.
Bitcoin is still in it's early stages and this year is for retail development having a service available in the market before future competitors arrive will be a distinct advantage.
I will also be investing on Tuesday best of luck on your IPO.

Thank you very much freedomno1!

[Ninshatamoto]

I like this idea, and I am definitely going to invest some BTC into this, but I have a quick question.

I love Bitcoin, but I live in an area where face to face transactions simply aren't feasible, and I don't think they ever will be.

For example, Craigslist, which is a household name, and far more proliferant than Bitcoin is not even very active in my area.

My question is this - Does your proposal do anything to help me, and people like me in rural areas where face-to-face transactions between users may not be viable?

[worldbridger]

I like this idea, and I am definitely going to invest some BTC into this, but I have a quick question.

I love Bitcoin, but I live in an area where face to face transactions simply aren't feasible, and I don't think they ever will be.

For example, Craigslist, which is a household name, and far more proliferant than Bitcoin is not even very active in my area.

My question is this - Does your proposal do anything to help me, and people like me in rural areas where face-to-face transactions between users may not be viable?

Hello Ninshatamoto, that's a good question. We'd love to help people in remote areas access BTC trading in an efficient manner. We understand that in rural areas, proximity between members can be an issue. Cash trades are not always an option. Not all trades on Dealcoin need to be made face-to-face; buyers and sellers can choose to send money via a wire transfer or any other form of payment. Although Dealcoin does not intervene in the wire transfer of the fiat currency, we intend to offer an BTC escrow service to provide additional security to our members. If you have further ideas on to how we can provide better services to rural areas, we welcome your input.