Cryptocurrency ATMs usually do not have options. Most only allow customers to trade with cash for Bitcoin BTC/USD.
This is not the case with CoinFlipthe Chicago-based startup founded by the 29-year-old Daniel Polotsky.
In addition to Bitcoin, CoinFlip offers Ethereum ETH/USD, Litecoin LTC/USD, Dogecoin DOGE/USD, Star lumens XLM/USD, Chain link LINK/USD, Pax gold PAXG/USD, USD coin USDC/USDand I’m tying USDT/USDPolotsky tells Benzinga.
Read about Polotsky’s thoughts on the declining number of ATMs, M&A, venture capital and CoinFlip’s global aspirations.
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Polotsk: I’m not concerned about the dwindling number of bitcoin kiosks. It seems that many companies are working to streamline their operations, and some players that were not well managed or did not comply with regulations are closing down. This may mean fewer ATMs overall, but those that remain will likely offer better consumer protection and a higher quality experience. At CoinFlip, for example, we prioritize customer support with our 24/7 customer service, which sets us apart from others in the market.
While there may be a reduction in ATMs in North America due to these adjustments, global demand for Bitcoin ATMs remains strong. This suggests to me that the market is undergoing a necessary correction rather than indicating a lack of interest in cryptocurrency services. This is a positive step towards a more stable and compatible environment.
BZ: Coin Cloud goes bankrupt; Genesis Coin picked up the pieces. Is the crypto ATM space ripe for consolidation?
The crypto ATM space is undergoing some consolidation. Genesis Coin’s intervention in acquiring a significant portion of Coin Cloud’s ATM network after the company filed for bankruptcy underscores this trend.
Operating these machines against a backdrop of volatile cryptocurrency prices, high operating costs, and evolving regulations in the crypto space certainly makes for a challenging environment, but it also presents an opportunity. As smaller operators struggle to maintain profitability, larger players with more robust infrastructures are increasingly acquiring their networks.
We are always exploring strategic opportunities to expand our footprint and product offerings, including mergers and acquisitions. However, any acquisition decision will depend on market conditions and the strategic value of potential targets. As regulations continue to take shape, we may see more smaller operators find themselves in a similar situation as Coin Cloud. Operators in this position are invited to get in touch. CoinFlip’s focus remains on sustainable global growth and innovation in the ATM space and beyond.
BZ: What is CoinFlip Ventures and when did it start?
CoinFlip Ventures launched in July 2022 with a $1 million fund to support early-stage crypto startups. The initiative focuses on DeFi, NFT, tokenization and other blockchain innovations.
Some current and potential notable investments include Dominance of financea decentralized derivatives market where users can bet on a new financial instrument — dominant trading; Function03a company working on labeling wallets on the blockchain and building a core ecosystem infrastructure; hoppya messaging app for market transactions that helps prevent fraud, increase sales, and allows users to pay with crypto to settle transactions; Koii networka decentralized physical infrastructure network that pays users for the computing power of their devices; and Entertainmentminta streaming, ticketing and distribution platform where users can fund their favorite creators’ show ideas to ensure they get made.
BZ: What inspired CoinFlip to look at New Zealand as a key market and become the first crypto kiosk operator?
The same fundamentals that made us the world’s largest crypto kiosk operator by transaction volume allow us to succeed in promising new markets like New Zealand. Being first to market gives us a competitive advantage. It establishes CoinFlip as a leading player in the cryptocurrency space in New Zealand, while attracting customers who are eager for alternative paths into the digital sector that are also secure.
Another important factor is New Zealand’s banking landscape. Kiwis have fewer banking options than the US, creating a tighter financial system that limits how people can handle their currency. This type of environment tends to create a demand for alternative financial solutions, which makes the option of buying crypto with money particularly attractive. Our services provide greater financial flexibility and opportunity, filling a gap in the market.
BZ: What’s next for CoinFlip?
We are eager to explore new ways to meet our customers where they are. We are about to create a global network of crypto kiosks, positioning ourselves not only as a facilitator of cash-to-crypto transactions, but also ultimately as the primary platform for global remittances, bill payments, tokenized assets in the US, and a ramp for cash payment for various services like online gaming/ticketing. We are also expanding our services to high net worth individuals and institutions through CoinFlip Preferred, a white glove service for customers who wish to trade larger amounts via wire transfer.
CoinFlip Preferred provides users with same-business-day settlement, superior pricing, and deep access to cryptocurrency buy/sell/swap liquidity. We also plan to enhance our online capabilities through our mobile wallet and enable more convenient purchases using methods such as ACH and debit/credit cards.
Stay tuned: Bitcoin’s impact as an institutional asset class is expected to be extensively explored at Benzinga’s upcoming Future of Digital Assets event on November 19.
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