It was announced today by the owners of Danish-based cryptocurrency exchange ExchangeMyCoins.com that the business is officially up for sale. The service launched in 2014 as an easy-to-use crypto service for swaps between the most popular crypto coins and later also introduced fiat currency.
However, now the only options for exchange are listed as bitcoin, litecoin, and dogecoin with no fiat option. With the introduction of multi-currency wallets and growth in the technology of services like Exodus, Changelly, and ShapeShift, just to name a few, the basic crypto to crypto service on ExchangeMyCoins looks outdated.
Crypto exchange or exchange to bank transfers was not how the exchange realized its main source of profit at its peak. The bread and butter at the height of operation were bitcoin exchanges into fiat currency PayPal accounts which launched in April 2015. The owners, though, got tired of doing the manual processing and PayPal wouldn’t allow for necessary cooperation to fully automate the process. See in a chart located below how the exchange volume dropped off by the end of 2016.
The owners put a note on the site promising full transparency in the process stating the following:
“We today have 21,000 visits per month and the traffic is increasing 150% year-over-year. Around 70% of the traffic is coming from organic search as a result of high visibility and strong global ranks on Google.”
“In 2015 we started to support exchanging altcoins to PayPal, which was handled manually to see the potential. In this period, we had a monthly revenue of $45,000 USD with around 15% profit. Since then we had to stop support for PayPal exchanges since we could not establish the necessary cooperation with PayPal in order to fully automate the exchange process. There is however still great potential in PayPal exchanges or implementing a solution for credit card exchanges and take advantage of the increased traffic.”
“Below we have assembled a list of unique features, information about the company, timeline and contact information for the team. We look forward to opening a dialogue with you.”
Information about the company
Traffic all time
- 268,113 sessions
- 197,103 unique visitors
- 183,680 organic search sessions (69% of all traffic)
Traffic monthly (latest 30 days)
- 21,661 sessions
- 16,982 unique visitors
- 16,383 organic search sessions (76% of all traffic)
Customers all time
- 2665 unique customers (average for the three methods listed below)
- 9683 exchanges
- 3.6 exchanges per customer
- Average revenue per customer: 146 USD
- Average profit per customer: 24 USD
Customers monthly
- 1199 exchanges in September 2015 (best month ever)
- We have data for the last 26 months.
- Average of 372 exchanges per month.
Retention
- 770 customers made more than one exchange
- 22% of all customers have made more than one exchange
Unique customers
- Wallet addresses: 2244 unique
- Email: 2609 unique
- Google Analytics UUID: 3143 unique
- Average: 2665 unique customers
Customers from all over the world
- Traffic from 220 countries
- Exchanges from 98 countries
Email permissions
- 1884 permissions in Campaign Monitor
Facebook followers
- 3689 facebook followers
- 29 reviews on Facebook
- 4.3 / 5 rating
Traffic growth
Growth in exchanges over time:
Features
The website
- Normal and fixed exchanges
- Option to receive an email receipt
- Track exchange feature to find previous exchanges based on deposit or own wallet address
- Contact form with a CAPTCHA to reduce spam
- Mobile-friendly responsive website
- Easy and user-friendly exchange flow with a status indicator for confirmations
- HTTPS implemented across the entire site
- Option to collect feedback from customers right after the exchange, which will be added to the exchange in the backend
Admin / backend
- Windows login + Two-factor login (Google Auth)
- Mobile-friendly responsive backend
- SMS notifications to different people dependent on severity and business area
- Supports all crypto coins with QT wallets
- Fast and easy enabling and disabling of currencies from the backend
- Overview of wallet balance of all currencies with the balance in BTC
- Security against hacking, by only allowing withdrawal to specified addresses from the backend
- Deposit to specified addresses in the backend which will automatically create a record of the deposit in the internal ledger
Automatic customer verification system
- System if users are exchanging large amounts with automatic email notification to the user with instructions to provide picture ID to validate his user
- Whitelist of verified users, who can exchange larger amounts
- System based on previous orders as well as single orders to identify when a user needs to be validated
Exchange admin system
- Display and administration of exchanges
- CMS to create, edit and delete pages from the backend
- Download or show wallet transactions
- Ledger of all exchanges
- Reports of total profit, profit for individual exchanges, the overview of exchanges based on current status, etc.
Exchange rates
- Redundant update of exchange rates from the markets largest API’s with enabling/disabling from the backend
- Automatic pause exchanges if exchange rates are not up-to-date with email notification to the user and SMS notification to admins
- Option to override exchange rate for specific currency pairs
Exchanges
- Automatic calculation of exchange rates between all currency pairs
- Automatic halting of very small exchanges with easy flow to enable users to return the coins to their wallet
- Automatic disabling of pending exchanges after 4 days, to reduce system load
- Throttling to reduce load on wallets in situations with many simultaneous exchanges
Code and development
- Wallet simulator for development
- Unit test suite
- Separate codebase for website, windows service and admin website
- Automatic daily backup to Amazon S3
Timeline Highlights
- December 2013: Started to figure out the architecture of the system
- September 2014: Launch of ExchangeMyCoins.com
- December 2014: Customers from more than 70 countries
- March 2015: Introducing Repeat exchanges
- April 2015: Introducing PayPal exchanges
- March 2016: Traffic increased 160% compared to March 2015
- December 2016: 2000 customers
- March 2017: 3000 facebook followers
Valuation of ExchangeMyCoins.com
- Value of Yearly traffic: 150,000 USD (if bought via Google Adwords)
- Value of extensive knowledge of Bitcoin and blockchain technology: 0 – 50,000 USD
- Value of Tech: Github repository, source code, server setup, wallets: 100,000 USD (+1000 hours of coding)
- Value of brand (785 backlinks, +3000 social followers, 1882 permissions, +2000 online mentions): 50,000 USD
- Value of revenue potential: 600,000 USD (3 years revenue potential)
Expected acquisition price: 200,000 USD
The company is registered as:
ExchangeMyCoins.com
Rosenvangs Alle 251, 1. th
DK-8270 Højbjerg
Denmark
VAT: DK-36499362