Having experienced enormous life savings losses due to failed government economic policies created in the 1980s and 1990s, Brazilians are turning to cryptocurrencies to invest in their life savings. With a majority of investors in the 30-40 age bracket, the cryptocurrency market in Brazil continues to expand rapidly. In 2017, almost 1.5 million Brazilians traded in cryptocurrencies.
This amount is more than twice the number of Brazilian stock investors listed, which amounted to 619,000. Furthermore, several of the country’s crypto-exchanges recorded from 500 to 5000 new users in one day, and in January 2018, and estimated $38 million was traded in Bitcoin, the most widely known cryptocurrency.
Currently Brazil provides the best crypto currency system, yet, its exchange services continue to be problematic, and have received numerous complaints from users. One frequent complaint was related to new registrations. Users complain about the inability to obtain approvals for new registrations. This stemmed from over-capacity, and FoxBit, Brazil’s leading exchange explained that the sudden increase of registration overwhelmed the exchange’s ability to meet with demands.
Technical deficiencies such as this also explain other complaints such as delayed deposit approvals, limited coin options, higher brokerage fees than international offerings, and delayed withdrawal requests. However, these technical flaws have not dampened the appetite of investor for crytocurrencies, and a new platform was designed to remedy these problems by striving to provide excellent user experience.
This platform is called CriptoHub intends to exploit the aforementioned flaws to enter the Brazilian market by providing an immensely improved exchange structure, making it more effective and efficient. The platform would provide more options to coins, and ease withdrawals.
With Brazil’s population of more than two hundred million, CriptoHub can capture a huge potential for growth. In fact, it is estimated that $75 million in Bitcoins are traded, and over 500 bitcoin transactions are executed on a daily basis. Furthermore, Brazil’s top two exchanges have a total of over 1.5 million registered users. Aware of the current context, CriptoHub, on the other hand, aims to reach this benchmark by improving upon the insufficiencies of the established crypto-exchanges. The main deficiencies of existing cryto-exchanges are that their technology is not current, and lacks flexibility for user withdrawals. CriptoHub focuses on filling this gap for consumers in order to differentiate itself and capture the Brazilian market.
The platform is specifically designed to accommodate the needs of various users while at the same time guaranteeing security by using cryptography technology. Considering other marketing processes in the Brazilian market, CriptoHub’s brokerage fee of 0.70% offers the population the lowest rates compared to the latter that charge 1.00%. It also offers remarkable discount programs through its utility token whereby the discounts can go as high as 90%. To make the use of the platform easier, is the development of a prepaid credit card that function in a similar manner to the fiat currency. As result, users’ crypto-assets have a liquidity which enables them to buy items conveniently.
CriptoHub has been instrumental in evaluating other successful cryptocurrencies such as Kucoin and Binance to enable it to emulate the processes that have led to the success of the ICOs. By availing its tokens to the general public, CriptoHub intends to revolutionize the Brazilian market by beating other forms of currency such as Binance which recorded an estimated US$2 billion on a daily basis seven months after its Initial Public Offering. Similarly, Kucoin has also experienced tremendous success after it was rated number ten in the world’s exchange platforms. Kucoin users are estimated to reach the 2 million mark topped up by the fact that the number of users is more than 100 times compared to when it was launched.the platform intends to create its coin using ERC20 technology that offers scalability to users. Scalability will enable users to transact using small denominational values and will also increase the level of security to protect the users from potential fraudulent activities.
With the goal of revolutionizing the cryptocurrency Brazilian cryptocurrency market, CriptoHub has worked to draw experience from other successful international exchanges such as Binance, and Kucoin. These exchanges have experienced great success with their ICOs. For instance, Binance has experienced the greatest success in start up history. After a period of seven months, it manages an estimated $2 billion worth of transactions. The firm’s current value is also $2 billion. Moreover, Kucoin managed to multiply its ICO value up to 100 fold with over 2 million users. It is currently ranks as the tenth largest global exchange. Based on these experiences, CriptoHub’s objective is to reach the top three national ranking for crypto exchanges within 6 months of its operation, and peak at number one within one year.
In light of CriptoHub’s ambitions, it may seem their goal is very ambitious, and may not be achievable due to banks closing their accounts and suspending services for cryptocurrencies. However, these currencies provide an alternative to traditional financial services in Brazil, and are used extensively among the population. Therefore, provided that CriptoHub can deliver its services as well as it claims, the chances of its success following is high.