Cryptocurrency ATMs are generally lacking in options. Most only allow customers to exchange cash for Bitcoin Bitcoin/USD.
This is not the case with CoinFlipthe Chicago-based startup founded by a 29-year-old Daniel Polotsky.
In addition to Bitcoin, CoinFlip offers Ethereum ETH/USD, Litecoin LTC/USD, Dogecoin DOGE/USD Price, Stellar Lumens XLM/USD, Chain link LINK/USD, Pax Or PAXG/USD, USD coin USDC/USD pair rateAnd Attached USDT/USD pair ratePolotsky tells Benzinga.
Read on for Polotsky’s thoughts on the dwindling number of ATMs, mergers and acquisitions, venture capital, and CoinFlip’s global aspirations.
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Polotsky:I am not concerned about the decline in the number of Bitcoin kiosks. It seems that many businesses are working to optimize their operations, and some players that were not well managed or did not comply with regulations are closing down. This could mean a decline in the overall number of ATMs, but those that remain are likely to 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 other players in the market.
While these adjustments may result in fewer ATMs in North America, global demand for bitcoin ATMs remains strong. This suggests to me that the market is undergoing a necessary correction rather than a lack of interest in cryptocurrency services. This is a positive step toward a more robust and compliant environment.
BZ: Coin Cloud went bankrupt; Genesis Coin picked up the pieces. Is the cryptocurrency ATM industry ripe for consolidation?
The cryptocurrency ATM sector has seen some consolidation. Genesis Coin’s move to acquire a substantial portion of Coin Cloud’s ATM network after it filed for bankruptcy underscores this trend.
Operating these machines in a context of fluctuating cryptocurrency prices, high operational costs, and evolving cryptocurrency regulations certainly contributes to a challenging environment, but also presents opportunities. As smaller operators struggle to maintain profitability, larger players with more robust infrastructure are increasingly acquiring their networks.
We continually explore strategic opportunities to expand our footprint and product offering, including through mergers and acquisitions. However, any decision to pursue acquisitions will depend on market conditions and the strategic value of potential targets. As regulations continue to evolve, we may see more smaller operators find themselves in a situation similar to Coin Cloud. We encourage operators who find themselves in this situation to contact us. CoinFlip remains focused on sustainable global growth and innovation in the ATM space and beyond.
BZ: What is CoinFlip Ventures and when was it launched?
CoinFlip Ventures launched in July 2022 with a $1 million fund to support early-stage cryptocurrency startups. The initiative focuses on DeFi, NFTs, tokenization, and other blockchain-related innovations.
Some notable current and potential investments include Financial dominationa decentralized derivatives market where users can bet on a new financial instrument: dominance trading; Function03a company working on blockchain wallet tagging and building critical ecosystem infrastructure; Hopscotcha messaging app for marketplace transactions that helps prevent fraud, increases sales, and allows users to pay with cryptocurrencies to settle transactions; Koii Networka decentralized physical infrastructure network that pays users for their device’s computing power; and Entertainmenta streaming, ticketing and distribution platform where users can fund show ideas from their favorite creators to ensure they get made.
BZ: What made CoinFlip consider New Zealand as a key market and become its first crypto kiosk operator?
The same fundamentals that have made us the world’s largest crypto kiosk operator by transaction volume are enabling us to succeed in exciting new markets like New Zealand. Being first to market gives us a competitive advantage. This makes CoinFlip a leading player in the cryptocurrency space in New Zealand while attracting customers looking for alternative routes into the digital sector that are also secure.
Another important factor is the New Zealand banking landscape. Kiwis have fewer banking options than the US, creating a more rigid financial system that limits how people can manage their currency. This type of environment tends to create demand for alternative financial solutions, making the option of buying cryptocurrencies with cash particularly attractive. Our services offer greater flexibility and financial opportunities, filling a gap in the market.
BZ: What’s next for CoinFlip?
We look forward to exploring new ways to meet our customers where they are. We are well on our way to establishing a global network of crypto kiosks, positioning ourselves not only as a facilitator of cash-to-crypto transactions, but also eventually as the go-to platform for global remittances, bill payments, US tokenized assets, and a cash on-ramp for a variety of services such as 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 exchange larger amounts via bank wire.
CoinFlip Preferred offers consumers same-day settlement, premium pricing, and access to deep liquidity to buy/sell/trade cryptocurrencies. Additionally, we 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 influence as an institutional asset class is set to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.
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