Business model
Swaptome.com is a service for storing, buying, selling and transferring cryptocurrencies between people. Buying cryptocurrency directly from another person allows to make a transaction without hidden fees and overpayments. By keeping the seller's cryptocurrency on a special Escrow account until the completion of the transaction, the service guarantees security and fulfillment of obligations between the parties, for which it charges a fixed commission of 1% from the cryptocurrency seller.
Market problem:
The cryptocurrency market itself is relatively young and multifaceted, and at the current stage of its development, a huge amount of resources flows into it, and around cryptocurrencies there is a tangible interest that can no longer be denied by the regulators of most countries in the world.
The most popular tool for carrying out operations with cryptocurrencies is cryptocurrency exchanges. However, the prospects for classical exchanges as a convenient tool for depositing / withdrawing cryptocurrencies are extremely ambiguous. Nowadays, the procedures for registration, verification, purchase and withdrawal of funds in fiat are becoming much more complicated. For example, Binance.com carried out forced verification, deactivated the accounts of those who did not want to go through it and began the process of removing users with questionable financial activity - and this is a natural AML process. Restrictions are growing (on deposit / withdrawal of funds) and the stability of exchanges as a convenient and fast tool for interacting with cryptocurrencies is gradually crumbling. In addition, users of exchanges do not control the assets they buy. This is where the tangible demand for safe, fast, easy purchase / storage of cryptocurrencies lies.
Problem solution and the product unique features:
On the one hand, Swaptome.com users receive the service of a centralized exchange in conducting fast and secure transactions. On the other hand, they get the benefits of free market relations - a decentralized platform. This allows to freely carry out transactions on favorable terms in a convenient and understandable form.
Competitors:
- Paxful
- Cryptolocator
- LocalCryptos
- BitPapa
What makes Swaptome different:
- A wide list of exchanged cryptocurrencies. The ability to quickly add the required cryptocurrency if there is a demand.
- Direct conversion of cryptocurrency into UAH and withdrawal to the card, without the involvement of third parties.
- Low commissions, no hidden or additional fees.
- Simple and instant verification (minimum amount of information).
- Individual terms of cooperation for wholesale customers.
At the moment, there are wallets for the following coins:
- Bitcoin (BTC)
- Litecoin (LTC)
- Dash (DASH)
- Tether (USDT) ERC20 / TRC20
The platform provides the following services:
- Safe storage of cryptocurrency using own wallets of the service;
- Instant transfers of cryptocurrency to external addresses (unlimited number of addresses for receiving cryptocurrency). This means that the user does not need confirmation of the service to send the cryptocurrency; in a moment after confirmation, the transaction will be displayed on the network. Thus, the confirmation of the operation on the network will take less time;
- Buying and selling cryptocurrency on client’s own terms with a guarantee of fulfillment of the conditions and security using a storage account (escrow-service);
- Instant conversion to UAH and withdrawal of cryptocurrency to Visa / Mastercard;
- Convenient and simple user interface allows to carry out the necessary operation quickly, eliminating the possibility of errors;
- No need to implement a complex verification;
- No additional commissions and hidden fees;
- Monitoring of all operations in the transaction history with the ability to export to a CSV file;
- Blocking the required amount of cryptocurrency reserved for a created offer or for a transaction accepted by the user.
- Absence of verification, centralization and collection of user data.
P2P functionality allows the user to make a quick deal by choosing the best offer from the possible, pre-filtering them and setting the necessary parameters (direction, type of cryptocurrency, commission size, amount limit).
AML and KYC:
On Swaptome.com - according to the requirements for p2p platforms, simplified user verification is in place, however, the project is aimed at compliance with KYC and AML standards. Considering the functionality of converting and withdrawing cryptocurrency to Visa / Mastercard, https://amlbot.com will be connected to the service for organizing procedures related to AML. At the same time, more advanced functionality and more limits on operations performed will be available for verified KYC users.
Target audience:
- Traders
- Those who want to make money on the exchange (arbitration)
- Offline cryptocurrency exchangers
- Small and medium business
- Crypto Investors
The target audience of the platform is both beginners who are familiar with cryptocurrency and experienced traders who trade on other cryptocurrency exchanges. The service allows them to deposit funds on favorable terms, and the absence of a withdrawal commission will significantly reduce the cost of transfers, making the use of cryptocurrency a really profitable and convenient means of making payments.
Current performance indicators
Official activity is in progress: the company is registered in the UK.
The cost of technical development of the platform is $ 80,000, the cost of registration and payment for related services is $ 20,000.
Swaptome service was launched on November 1st, 2021.
Today the service has:
- 215 registered users from 8 countries. The information is taken from the statistics of verified phone numbers.
- 73 users verified their phone number, of which:
- Estonia - 4
- Japan - 4
- Ukraine - 17
- Russia - 36
- Poland - 2
- Uzbekistan - 2
- Lithuania - 4
- Kazakhstan – 4
- 139 successful trades (total amount of trades - $ 92,000).
Team:
- 2 founders
- 2 marketing specialists
- 1 CTO, front-end
- 1 back-end
- 1 system engineer
- 5 technicians
Monetization is carried out in two main directions:
- P2P transactions - commission from a cryptocurrency seller 1%.
- Conversion of cryptocurrency into fiat currency and withdrawal to Visa / MasterCard 1-2.5%
Marketing
Among the main sources of promotion and attracting new customers, the following channels will be used: Telegram and Facebook / Instagram.
To work with Telegram traffic, the planned budget is $ 10,000. This budget will cover from 3,000 to 5,000 daily audience, conversion to the platform will be about 10% of views, which means that the service will be visited by 150-300 visitors. Conversion into a registered user is 1.5%, which corresponds to 2-5 users. Expected number of trades: 1-4 with an average amount of $ 700.
The following indicators are planned (monthly):
- 180,000 views
- 9,000 conversions
- 900 registrations
- 800 trades
- 700 $ average volume of transactions
On November 2, 2021, an advertising post was launched on the Telegram channel, which is dedicated to cryptocurrency trading (cryptocurrency trading on centralized exchanges like Binance) - this channel contains the target audience of the service. The cost of a post was $ 500.
The service received:
- 215 registered users
- 139 successful deals
- $ 92,000 total amount of transactions
- 661 $ average trade volume
- $ 920 income (1% commission from each transaction)
- Cost per User (CPL): $ 2.33
- Revenue Per User (EPL): $ 4.28
Offer for investor
It is offered for the investor a 30% stake in the company for $ 255,000.
Until the payback, the distribution of profit may be in a 70/30 proportion in favor of the investor, regardless of the share in the company.
The following things will be financed:
- Marketing - $ 50,000 of which
- Telegram - $ 38,000
- Facebook / Instagram - $ 22,000
- Working capital - $ 150,000
- Salary to employees - $ 55,000
Other costs for the 1st year will be covered from operating activities:
- Services - $ 21,400
- Software & Data Providers - $ 3,750
- Software development - $ 19,000
- Software security - $ 22,000
- Legal support - $ 9000
- Creation of a mobile application (iOS, Android) - $ 10,000
Project performance indicators
|
INDICATOR |
2021 |
2022 |
TOTAL |
|
Investments |
255,000 |
|
255,000 |
|
Revenue |
347,603 |
914,750 |
126,235,2 |
|
Expenses |
200,150 |
378,137 |
578,287 |
|
Profit |
147,453 |
536,613 |
684,065 |
|
Number of users |
4,554 |
11,254 |
11,254 |
|
Working capital |
320,897 |
711,013 |
711,013 |
|
ROI |
|
|
187.78% |
|
Profitability |
|
|
87.78% |
|
Payback period |
|
|
1.6 |
