Panama-based company Coinapult created a service called Locks to combat constant price volatility in the unstable, open and free bitcoin ecosystem. Launched in July, Locks ties customer’s bitcoins to a range of currencies and assets, such as gold or silver, so they stay at a fixed rate until the customer unlocks them.
Now, Coinapult is discounting the Locks service by 25 percent for all customers looking to escape the clutches of price volatility.
“Through increased volume, we are now in a position to offer a reduction on our spread, so customers now pay just 1.5% to Lock. We charge no fees for Locking and Unlocking, just a spread, to ensure that we are able to hedge our exposure and keep the system working safely.”
Coinapult recently had to share the service space of Locks with another company looking to put the pressure on them: Bitreserve.
One month ago, a Redditor noticed that the two services were similar and wanted to put them to the test. He not only found that Coinapult was the better deal overall, but he also found that the Bitreserve’s promise of USD hedging for 0.45 percent was a product of, what the Redditor claims is, deceptive marketing.
“The ‘Bitcoin network fee’ on deposits [on Bitreserve] doesn’t make any sense, as I paid network fees myself. Since it is likely a flat fee, I did the round trip percent calculations with and without this ridiculous and badly named fee. I also was not shown the price I would get before depositing, so I had to figure this out after completing the transaction. They are even worse for withdrawals, where the price was never shown to me, not even after completing the transaction. The only way I was able to determine a withdrawal price is by dividing the fiat deducted from my account by the amount of BTC I received.”
In response, Coinapult chief operating officer, Justin Blincoe, chose to work to discount the price 25 percent further and make a statement.
“We are always looking for ways to improve our service and competitive, robust pricing is important to our customers; no moving targets and no uncertainty, that’s why we choose to guarantee all of our prices for 7 minutes.”
Coinapult advertises using Locks for monthly bills such as cash flow or the following month’s rent. By locking the bitcoins, Locks makes sure that they’ll be worth the same amount when you unlock them to make the necessary payment. Even if the bitcoin price takes a dive on the markets.
Of course, you also won’t be able to experience any sudden rise on the exchanges if bitcoin decides to head to the moon. That is unless you choose to unlock your funds.
Images from Coinapult and Shutterstock.
Last modified: June 14, 2020 9:51 AM UTC