It looks like Cryptsy, one of the biggest altcoin exchanges will be introducing it’s new USD markets soon.
The exchange has been around since early 2013, and the announcement of the USD markets is not really something new. We knew that those markets were going to arrive someday thanks to cryptsy’s cryptostock.
In October 2013, the exchange issued shares that were sold through the crowd funding platform of cryptostocks.com. There Cryptsy would look for the money of potential investors with the promise to pay monthly dividends based on the exchange’s fees. As mentioned in the information given in this page:
We are seeking capital to help us fulfill regulatory compliance and file licenses in all the US States which require us to be registered as an MSB. It is estimated that this process will require around $1M in capital. Fulfilling these requirements will allow us to offer Fiat Currency on our exchange. We currently only trade in Crypto-Currency to Crypto-Currency pairs.
The users were teased for the upcoming markets after the website was redesigned some months ago. The graphical update in the home page of the website included a window that mentioned USD markets will be COMING SOON! But besides that, there was no release date announced for those markets.
On March 29, the website was updated again to include 4 cryptocurrency – USD pair markets. (BTC/USD, DOGE/USD, FTC/USD and LTC/USD) We could say that this is a teaser again, since users still don’t have access to trade. By going to one of the pages of those markets users will receive the message: This market is for Verified Accounts Only. The User Verifications system will open within the next week. Probably it won’t be until next week until users will be able to apply for verification but what’s certain is that FIAT pairs are coming really soon into cryptsy and they’re here to stay.
Surely, access to cryptocoins could be easier this way since users would buy them directly with their fiat money. But the reaction of the market after the fiat/altcoin markets will open can’t be predicted. Some might say that prices will rise due to interest of buyers. Others predict that there are going to be massive cash outs after the opening of the markets, making the prices decline as a result.
There already are 157 active altcoin markets and more are coming. There is a massive ~2500 daily BTC volume. The exchange’s revenue certainly is going to expand further after the addition of fiat to the markets. Inclusion of fiat markets in the exchange is probably going to attract even more interest and users to the exchange.
In addition many of the regular users of Cryptsy’s services are surely going to take advantage of them or even migrate from their altcoin exchanges. So we are probably going to see the volume of markets like FTC/BTC, DOGE/BTC, LTC/BTC declining because of users preferring to trade in fiat.
Last modified (UTC): March 31, 2014 11:01