Erik Voorhees’s project, ShapeShift.io, has received $1.6 million in funding from the Digital Currency Group, Bitcoin exchange BitFinex, Bruce Fenton, Trevor Koverko, Michael Terpin, and Roger Ver among others. All these big names in the Bitcoin investing space have put their money on ShapeShift for one simple reason: It works. Users from around the world are able to go to the accountless altcoin exchange and trade Bitcoin for ____coin – any of the dozens of altcoins available on the site. ShapeShift does not hold user funds for very long, and returns your shapeshifted coin as soon as the network confirms your initial transaction.
ShapeShift has taken the cryptocurrency world by storm as one of the more popular services constantly lauded by users everywhere. A big part of this is due to ShapeShift’s accountless structure. Users can be in and out without having any of their personal information stored. This is a feature that is highly valued by the cryptocurrency community. Voorhees has a commendable “no-fiat” policy – this means that only cryptocurrencies are on this “exchange.” By only using currencies that were created in the last 6 years, Voorhees is using all new technology. As a result, his company is able to provide speed and efficacy without any compromises. In just the month of July, ShapeShift transacted$2 million USD in volume between thousands of cryptocurrency pairs. He explained:
“ShapeShift has no user accounts, signup, or registration process whatsoever, but it’s faster and far more convenient than traditional exchanges.”
A New Type of Exchange
Voorhees told TechCrunch that he hopes that all exchanges can be as fast and simple as ShapeShift one day. Two of the cryptocurrencies that ShapeShift supports are the beginning framework for that dream. The growing exchange allows users to trade Bitcoin, or many other altcoins, into Tether and NuBits. Both Tether and NuBits are built to be “tethered” to the USD exchange rate. This is a feature that will eventually be emulated in cryptocurrencies tracking the Yen, the Yuan, the Euro, etc. Have no doubt that ShapeShift will add those cryptocurrencies when they are ready. But when will they be ready? What are the required steps for being listed on ShapeShift? Or any exchange for that matter? At the 2015 Texas Bitcoin Conference, Erik commented on why certain altcoins appeal to him:
“Good examples are things like Nubits, BitUSD, or Tether. All three of these track the value of the [US] dollar, and that is something fundamentally different that Bitcoin does not and cannot do. And so, there is a certain value there.”
But How Does ShapeShift Do This?
The specifics of how are obviously kept under wraps, but ShapeShift is able to make money with every single transaction completed on their platform. Each of the cryptocurrency trades involves transactions on two blockchains. When asked about which altcoin exchanges he uses, Voorhees said:
That’s generally proprietary info, but I can say ShapeShift is integrated with all major exchanges.
Have you used ShapeShift? What do you think about the service? What altcoins do you trade for? Tell Bitcorati with a comment below.
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