FlipCoin (ATM) - Bridging the gap between consumer and crypto.
What is CoinFlip?
At CoinFlip, we feel that the exchange of different coins (like bitcoin and ether) into fiat currency should be a seamless and intuitive process. We are an established company in the Midwest that adheres to Know Your Customer and Anti-Money Laundering compliance protocols. Our goal is to create a global network of cryptocurrency ATMs that allow users to easily convert their highly-available fiat currency into relatively unobtainable digital assets and vice versa. While the cryptocurrency ATM network is not as expansive as the online exchanges, ATMs do provide a location where users can take advantage of a quick registration process and the convenience of being able to exchange cash for cryptocurrencies in a matter of minutes. Speed, convenience of acquisition, and a fair price are three sought-after components of cryptocurrency exchanges. In order to increase general awareness and encourage mass adoption, these facets need to be optimized. These are core values at CoinFlip as we are actively trying to expand the ATM network across the country and eventually, the globe. People should be able to make bitcoin and other cryptocurrency purchases without hassle and time constraints. The easier it is to freely exchange fiat for cryptocurrency and vice versa, the faster the overall crypto sphere will grow.
CoinFlip turns purchasing cryptocurrencies into an easy and straightforward
process. What we do is simple; we deploy cryptocurrency ATMs and conduct inperson
bitcoin trades, and earn a profit by making a market.
The Skokie, Illinois-based company was officially incorporated in December
2015. Currently, the firm operates 13 ATMs, with locations in Third Lake,
Elk Grove Village, Skokie, Lincoln Park, Wicker Park, Pilsen, Garfield Park,
Woodlawn, Alsip, Rockford, Champaign, Naperville, and Calumet City. 12 of
the machines accept cash and dispense cryptocurrency, and one of them
(the Champaign location) is a more sophisticated model that can also accept
cryptocurrency and dispense cash.
Online marketplaces such as Coinbase and Bitfinex make purchasing
cryptocurrency painfully annoying. They all require a rigorous on-boarding
process that requires even small-time buyers to divulge very personal
information, such as government identification, bank statements, and social
security number. Not only that, but receiving the cryptocurrency takes a very
long time; Coinbase will make users wait for 7-10 days for ACH purchases,
and an exchange like Bitfinex requires a wire transfer that is not only time
consuming, but costly (usually around $40-$70 for US customers).
We’re different. CoinFlip understands that not all customers can afford to wait
or jump through hoops. Our registration requirements are straightforward, and
our turnaround time is unparalleled. When our customers engage in an inperson
transaction or use the ATMs, the cryptocurrency is sent to their wallet
before they even have a chance to return to their car.
Due to the convenience and speed that the company offers with regards to
purchasing crypto, there has been immediate demand for our services. We
have been able to grow very quickly because of our dedication to customer
service (available 24/7), our enhanced reach via new locations, and our
Because cash is convenient for the user and carries extra risk/logistical issues
for the vendor (us), we can charge a premium on the cryptocurrency that is
purchased with bills. Currently, we charge 7% over GDAX’s market value of
crypto for each sell transaction, and 3.5% under GDAX’s market value for each
buy transaction. These are the lowest ATM fees in Illinois.
Although it is hard to quantify the size of the cryptocurrency sector due to
relative novelty, the space is quickly gaining traction in our society. It is still
far from mainstream, yet as adoption continues to rise, so will CoinFlip’s
FlipCoin Business Model
* Core Components
The business model at CoinFlip is centered around exceptional customer
service, low fees, and the simple user interface of our machines. There are
other ATMs on the market that are intimidating to users and are difficult to
use. In addition, they gouge their customers by charging unreasonable rates,
sometimes in excess of 16%. We have two different versions of ATMs that we
deploy. The majority are small one-way machines that accept fiat cash in
exchange for the corresponding crypto amount, which is sent immediately to
the customer’s wallet address. The second is a larger two-way machine that
allows people to buy or sell cryptocurrencies for fiat cash.
* ATM Design
Our primary ATM design consists of:
- A small outer shell comprised of durable metal
- A simple grey stand that the ATM is bolted on top of
- A tablet-like screen that has an integrated user interface
- A state of the art validator that quickly accepts fiat cash
- A camera that makes it easy to verify customer identities
The larger two-way machine is a single unit with multiple recyclers that allows users to sell their crypto to CoinFlip.
* Terminal Software & Transaction Process
The user interface is easy to use. This is critical in a space that is often criticized for being too complex for the average consumer. Users are prompted through a quick registration process if they choose to purchase an amount over $500. The registration is tied to a user’s primary phone number. After submitting a picture of a valid government-issued ID and a matching selfie through the built-in ATM camera, the user is then able to scan his or her QR address code and insert bills of any denomination into the ATM. After the user is finished inserting each individual bill, he or she is prompted to confirm the total amount. The corresponding value in crypto will be automatically sent to his or her wallet address.
* Backend Server Protocol
Every registration over $500 is manually approved by a CoinFlip associate. We
take our compliance program extremely seriously and run all of the verification
checks that are required by the federal government. Government-issued IDs
and user information gathered during the registration process are stored on a
secure server, and never sold to a third party.
* Token-Holder Incentives
We are now excited to offer FlipCoin tokens to our dedicated supporters. They
will be treated as a membership token that will provide benefits for those own
it, with access to significant discounts, consulting, crypto networking events,
and educational literature/videos created by CoinFlip (among other things).
We are also in the process of submitting applications to have FlipCoin tokens
listed on major exchanges, so that they can easily be acquired by new
customers (or unloaded by old ones).
* Owners of…
>$100 USD (if purchased during sale)
or 0.1% of Total Outstanding FlipCoins (if purchased after sale)
CoinFlip members that possess over 0.01% of our released tokens will be
eligible for large discounts. We will drop our fees in half for these holders. Our
buy crypto for cash fee will decrease from 7% to 3.5% above spot price, and our
sell crypto for cash fee will decrease from 3.5% to 1% below spot price.
Can’t reach our ATMs? No worries! While you wait for a CoinFlip terminal to
reach your town, you can always send us a wire transfer (domestic only) in
order to purchase crypto. We will cut our wire fee from 4% to 2% above spot
price for FlipCoin members in this tier. This deal (and virtually all of the other
incentives) do not expire.
As we use the sale proceeds to expand our ATM and client networks, the oncein-
a-lifetime discount this token provides will gain in usefulness. We will also
attempt to process ACH payments and credit card transactions, which the
discounts will apply towards.
>$500 USD (if purchased during sale)
or 0.5% of Total Outstanding FlipCoins (if purchased after sale)
Members in this tier will gain admission to quarterly CoinFlip networking
events, which will be attended by influential individuals in the Chicago/
Midwest crypto network. The individuals who own over 0.05% of FlipCoins after
the initial sale will also receive CoinFlip apparel (such as snapbacks or t-shirts)
as a “token” of our appreciation.
>$1,000 USD (if purchased during sale)
or 1% of Total Outstanding FlipCoins (if purchased after sale)
CoinFlip will provide this group with on-demand consulting to answer any
questions related to cryptocurrency. Simply call us, and we’ll give our two
cents about where the industry is headed, or perhaps provide advice regarding
securely acquiring and storing crypto.
We will also periodically send these members literature and/or videos about
different topics surrounding the sphere.
>$5,000 USD (if purchased during sale)
or 2% of Total Outstanding FlipCoins (if purchased after sale)
Have you ever wanted to bring cryptocurrency ATMs to your area, but didn’t
know where or how to start? If so, you may want to consider purchasing
FlipCoin. CoinFlip now gives aspiring ATM operators access to its brand,
compliance protocol (US-tailored), customer service representatives (who
speak English and Russian), and server specialists. CoinFlip will waive its usual
$10,000 upfront setup fee for token holders in this tier. As more potential
licensing partners find out about CoinFlip, this token will gain utility. New
operators are already in the process of helping us expand nationwide, and
hopefully this incentive allows us to do it even faster!
*CoinFlip reserves the right to reject potential operators and refund
their entire contribution (the amount refunded will be the USD value of
the contribution at the time of purchase)*
>$10,000 USD (if purchased during sale)
or 4% of Total Outstanding FlipCoins (if purchased after sale)
You, my friend, must really like us. For this amazing show of support, we will
grant these angels full access to all CoinFlip financial/sales reports, and will try
to incorporate them into future ventures. They will also have a seat at all of our
board meetings (virtually or in person), and will act as the company’s official
*The incentives build on each other. For example, if you own more than 0.05%
of released FlipCoins, you will obtain the discounts, the apparel, and the access
to the networking events.
**New customers who obtain over 0.01% of tokens after the initial sale must
wait two weeks before presenting them for discounts.
Accelerated Cryptocurrency Adoption/Increased Network
If we successfully connect fiat-holding citizens with a fast and simple
method to inexpensively turn their cash into crypto, then the cryptocurrency
community will grow as a result! Should we hit our goal of 100 ATMs by
the end of 2018, then we will have noticeably increased the network of the cryptocurrencies we trade (bitcoin, ethereum, and litecoin as of now).
History and Development Timeline
* Past Milestones
CoinFlip is growing quickly and has already blown past years’ sales numbers
out of the water. As we continue to expand as planned, CoinFlip will be able to
capture the market share in the Midwest and extend to other areas in
the United States. The company’s goal is to operate 100 terminals by the
end of 2018.
CoinFlip currently has 13 ATMs deployed in Illinois, and we are looking to
quickly expand. We recently ordered 20 new machines from our manufacturer,
and have plans to deploy 1-2 ATMs per week in new locations throughout the
Midwest. You can check out our website, http://coinflipatms.com, to view a
complete list of all current ATM locations. See Funding Usage for a breakdown
of future expansion plans.
* Licensing Opportunities
CoinFlip is in the process of adding other services to complement our ATMs.
We currently offer consulting sessions/managed services for people unfamiliar
with the cryptocurrency space. We are additionally speaking with a variety
of entrepreneurs who want to incorporate our ATMs and brand into their own
business (licensing). These ventures will be set up alongside regular CoinFlip
operations. We handle the branding, compliance, customer service, and server
support, which allows our operators to overcome the steep learning curve
involved in running a business of this nature.
* Presale Registration
Prior to the crowd funding period, we are offering the crypto community to
register wallet addresses. This will allow us to have a better idea of how
many people plan on participating and how much they plan on contributing.
More information on the presale registration date and overall process will be
provided in the future.
* Token Sale
An ether or bitcoin wallet address will be displayed upon logging in on the
sale’s website (flipcoinsale.com) on the date of the crowd fund. Contributors
will be able to send ether or bitcoin to the address in exchange for FlipCoin
tokens for the entire duration of the sale. If you would like to participate,
simply visit our website and create an account with username, password, and
Presale: 10 million tokens at $0.08 per token
Sale: 30 million tokens at $0.10 per token
Last Chance: 10 million tokens at $0.12 per token
The ETH price of the tokens will be locked in one hour prior to the presale.
CoinFlip reserves the right to readjust the ETH price in order to align correctly
with the above dollar amounts.
The project team members will split 5% of total outstanding FlipCoins as a
reward for all of the hours they put in to make this token a reality.
Token Sale Goal: $5 million
Total token supply: up to 50 million
An ether or bitcoin wallet address will be displayed upon logging in on the sale’s website on the date of the crowd fund. Contributors will be able to send ether or bitcoin to the address in exchange for FlipCoin tokens for the entire duration of the sale. If you would like to participate, get started and register here.
Your contributions will primarily be used to make CoinFlip’s affordable and
simple services more accessible to everyone. Roughly 55% of all funds raised
will go towards rapid expansion throughout the United States and worldwide.
This money will allow us to immediately purchase more ATMs (10%), market our
brand (15%), and increase crypto inventory (30%). Our goal to deploy 100 ATMs
by the end of 2018 is lofty, but definitely doable.
Compliance, Accounting, and Legal (20%)
In order to effectively operate, the company will need to dedicate an increasing
amount of resources to enhancing its compliance protocol as it scales. In
addition, CoinFlip will need more sophisticated accounting and legal assistance
once profits grow, more currencies are offered, and the company operates in
different states/countries. 20% of funds will be used for these three purposes.
Core Team (15%)
15% of funds raised will go to the CoinFlip core team (comprising four
members) in the form of a salary, prorated over the course of one year. We’ve
been operating for nearly two years, and have bootstrapped the entire way.
None of the founding members were taking a base salary as recently as
May of this year. This would allow them to continue organically growing the
Software Upgrades (10%)
10% of all funds raised will go towards upgrading our software. This will
improve the overall user interface and add necessary compliance/proprietary
features to set us apart from the competition.