since may launch coin purse, QuickCoin time has attracted wide attention in the field of science and technology. This web-based coin purse, relying on strong in Facebook network social influence, to provide users with friendly simply use COINS experience.
soon, this has always been self-sufficient company began to advance on financing, QuickCoin seed financing, in the first round of the August completed these capital soon enrich its Wells Fargo bank account in the United States. But the celebration didn’t last long.
QuickCoin executive President Nathan Lands in an interview, said: “everything looks very well, until one day I suddenly found that some of our bills are always refuse to pay, because our debit card has been declined.”
Lands, said the next few weeks, this kind of situation is still growing, in the end, even the QuickCoin bank accounts were closed. Lands said he never received any letter of formal documents, told his account closure. But it did happen, any transactions through the QuickCoin account, have been turned down.
the end result is that started with the San Francisco company was forced to seek cooperation, Banks, even beyond the scope of its consideration of the United States. QuickCoin recently said in a statement, they have found effective solutions and the team for the long-term development plan.
Wells Fargo to confidentiality, refused to comment on QuickCoin events.
but Lands, points out that his suffering is not a coincidence, this shows clearly that the U.S. banking system was not convenient to the currency industry – in contrast to his COINS industry, Banks prefer to support some domestic enterprises.
more let a person in distress situation, however, was his account and prayed to hear the smell.
behind the “lock”
Lands had mentioned in an email, one of the most famous investors in circles has privately admitted that the us company is generally on the seek cooperative Banks suffered winds in winter, it is not yet properly solution.
a famous COINS company founder suggestion QuickCoin before find a stable partner, with some small Banks do first springboard. “Before aware of their own, do not reveal your company is doing what of, this can earn you a few months time.”
the CEO who spoke on condition of anonymity, said he is willing to to QuickCoin lend a helping hand, but there is no such thing as a free lunch.
another investor wrote: “almost all Banks are interrupted and the currency of the company’s cooperation, if I can find one exception, I will inform you.”
the whole procession in the field of crisis
for Lands and further developments, many investors and companies are involved in the discussions, and shall be admitted. There’s almost no Banks are willing to co-operate and COINS, and for a period of time, have a stable and well-known small vc companies, was the key to get bank support, they have a common consensus.
the currency trading platform Coinsetter chief executive Jaron Lukasiewicz pointed out that this kind of phenomenon makes the currency rising inequality between companies.
he also analyzed said: “the Banks are divided into three major groups: the first kind of completely wrong currency open, most of them. And there are no COINS and a small part of the well-known Banks, but also does not have rebuffed, said if policy allows, or would you consider cooperation. And only the third class, part of the tiny, are willing to cooperation and COINS.”
COINS dig BitFury investors Bill Tai hardware company spokesman said, he believes that this is just because people prejudice against currency company wide, most large Banks has suspended the currency despite regulations related business, but after they have a better understanding of the currency, will resume cooperation.
circle some investment guru is suggested that they understand the company’s market value, but the situation is too serious, they also feel hesitate to bet on.
as the currency board member of the foundation, Brock Pierce the AngelList syndicate promised investment group investment in 2014 12 COINS startups, but so far only invested in two. He proved the stability of the bank support to startup how rare, he comment said: “if someone said to me: ‘we have a partnership with a bank, we have automatic switching (ACH) devices’, I will immediately interested in them, because it is too hard to.”
COINS enthusiasts and mobile gift card provider Gyft, chief executive of Vinny Lingham also explained that in his view, the current environment only for those who are large vc firms in the currency of the company.
Lingham thinks the COINS ecosystem is in a state of anti-competitive, Circle, Coinbase and XAPO company can raise money to build relationships and develop. At the same time, other small business owners are being sidelined, facing elimination, Tai also agrees.
in addition, Lands experience also confirmed this bias. Accounts in his company was shut down after a few weeks, Lands to meet some of the Banks and credit cooperatives, but they refused to provide QuickCoin business.
“they most people will ask: ‘a vc firms invest in you? ‘, as if this is a prerequisite for opening a bank account.” But unfortunately, QuickCoin no large vc firm support, just have a group of small investors.
other than the currency issue
the currency investors view of this situation is even more real, they think small start-ups frustration is understandable, evolution, survival of the fittest.
SecondMarket chairman Barry Silbert has been through his vc fund bitcoins Opportunity Corp, personal investment the company more than 30 COINS, he expressed the hope that more COINS can get bank business. However, he admitted that this circle has already developed into reality version of “a tale of two cities”, only with big-name investors support start-ups can and bank cooperation with pleasure.
however, think that this development will bring positive influence, he said: “I would like to see the bank and after running-in, these companies really on the path of a win-win situation, set up their own process and grasp the good cooperation relationship management skills, and then start again, rather than these companies.”
think Pierce can shelve disputes, the decision for the Banks have considerable economic significance. He said: “our revenue of $1 million can also be ecstatic, but for the bank, the money isn’t worth mentioning at all. Therefore, for their anodyne way of action, I’m not surprised.”
Silbert and Pierce to comment, said companies using the low risk business model also be favorred gradually. The business model including based on chain of products and services, and they do not have a direct money exchanges and consumers.
however Lukasiewicz thought this bias is for certain types of funds, especially the small consumer transactions, and added:
“many Banks are interested in a transaction between enterprises and enterprises more, when it comes to consumer transactions, the bank basically lack of interest.”
Banks are reluctant to accept supervision
many experts (especially the more experienced venture capitalists) quickly warned that Banks are trying to understand the currency. They point out that although at present a lot of people haven’t participate in the currency of ecological system, but they all know more and more businesses active in this area, also realized that the currency has a great potential, and may lead to long term business.
Wells Fargo said their bank is “to learn more information about virtual currency and its potential returns and risks”.
however, critics argue that other Banks are reluctant to set foot in the currency is due to regulatory factors.
but there are still more than a smaller bank statement, credit cooperatives, including a washington-based peninsula they publicly supported this view, said if the currency company come to work, can consider cooperation. And chief executive Jim Morrell has made it clear that his company will not accept the COINS, reason is very simple, they do not cooperate with any cash service enterprises, because they have to follow the principle of large, avoid can cause the risk of cooperation.
“it’s not worry about work more, but this is what we have to pursue? At this point, we have not clear instructions board “.
seeking asylum abroad
although the latest information is not the case, but there is a widespread view is that foreign Banks are more conducive to the currency. According to their own past experiences, Pierce also think the same think so.
Silbert said, adding that despite his to have confidence in this emerging market investment, but some startup or worry can stick to it. “A lot of these companies have a relationship and only one, they worry that one day they may receive a phone call, then the sole partnership also have fly away.” Silbert further pointed out: “any COINS company move abroad with advantage may also is only temporary. I think some of these companies is a partnership with a bank, the bank’s senior or don’t know these companies in the currency, or even don’t know what is the currency. To be honest, this kind of thing is very common in the United States.”
let time to prove
although the COINS start-ups face challenges, but the risk investors agree that the currency of the United States banking crisis is only temporary.
Pierce also optimistic, he thinks that persistence is the only way out: “if you’re like hundreds of Banks, will always find some willing to try the cooperation, but many people just contacted several went awol.” Lukasiewicz very agree with these views, he said to and Banks to establish partnerships, by hard work and luck.
to recall the past, he has also faced the test of endurance is the guarantee of success, only the strongest enterprise survived. As he recalls, “that each step in the process, someone told me XXX fall by the wayside, this kind of words I have heard many times. You will find that they attend all kinds of meeting, to raise money, but again and again to hit a wall, how difficult they are beginning to realize that cooperation with the bank. Then they will say, ‘this is fundamentally impossible things, well, let’s continue to the next thing.”
Silbert thought that the bottleneck will last a long time. He emphasized that he come into contact with the Banks and investors interested in COINS business is more and more, he even began to describe the future possible beauty: Banks will struggle to rob to want to do the currency of the company’s partners.
however, problems still exist, when will these interests into action, and how many entrepreneurs can adhere to wait, don’t give up?
Lingham said: “in the short term, to seek cooperation bank threshold will be very high, but in the middle of this difficulty will decline, but in the long run, all Banks will gradually accept COINS, because they have to do it. As for how short the short term? , it is not I can guess.”