The private beta version of Coinarch will allow testers to place bets with up to 8 times leverage on the crypto-currency whose price will be based on Bitstamp, a Slovenia-based exchange. The Singapore-based company is planning to test the security protocols of its trading technology on a small group of users to assure traders that it will not follow Mt Gox, after the latter collapsed losing investors about US$500 million.
Even though I was not one of the privileged few to get my hands on the beta version, the users’ main concern is always, first and foremost, security. Not to assume that the current version is highly-vulnerable to hacking, but it’s always better to be safe than sorry; just ask Mark Karpeles.
The firm is based out of Singapore and will be focusing mostly on the Asian market, trading coins with users in its home city and other business hubs such as Hong Kong. There are currently no plans to support any other crypto-currency, which make sense at this point; Bitcoin is volatile enough, so imagine juggling yet another fickle crypto-currency.
Mark Hergott, the COO and co-founder of Coinarch is excited about the timing of their decision to get involved with crypto-currencies. Major financial institutions and governments have noticed the Coin and its influence on the global financial system but have not passed any definitive measures or regulations for digital currencies as a whole.
Coinarch is an ambitious project although it is heavily reliant on Bitstamp. When this happens, one starts to understand that exchanges, which were previously small-time coin trading platforms, are becoming big fish in the pond of cryptographic currencies.
As Coinarch steps into the fray, there are endless opportunities for the fledgling platform; however, it must tread lightly and remain cautious in the unpredictable world of crypto-currency. Good luck to Coinarch and we certainly hope it does not meet the same fate as Mt. Gox.