CoinZoom is a U.S.-based cryptocurrency exchange founded in 2018 by Todd Crosland, former founder and CEO of Interbank FX, a CFTC-regulated company. Soon after its official launch in March 2020, CoinZoom was legally certified as a registered MSB (Money Services Business) in 50 U.S states and has since built on its aim of becoming a digital bank for crypto and fiat holders.
However, with the rise of decentralized finance (defi) tools like Uniswap, the time when a cryptocurrency exchange could survive on trading fees alone are gone.
Keeping in line with the ever-changing crypto landscape, CoinZoom has introduced several online finance products that typify the evolution of cryptocurrency exchanges as they morph into web-based banks. Here’s a rundown of what CoinZoom has to offer U.S. cryptocurrency users.
How CoinZoom Expands on the Exchange Paradigm
First of all, CoinZoom lists over 20 cryptocurrencies and features three base trading pairs in USD, USDT, and BTC. Market, limit and stop orders can be executed on a simple, industry-standard interface, and the option to use CoinZoom’s in-house ZOOM token to pay for trading fees can be chosen at the click of a button.
The exchange provides tools for novice and expert traders, such as the option to set up automated algorithmic trading, an advanced charting package, and live order flow information. Real time Depth of Market (DoM) calculations display how many tokens can be bought from the order book without causing a substantial price fluctuation.
Building and expanding upon the typical cryptocurrency exchange model, CoinZoom features several financial services and products more commonly associated with online banking.
One example is the recently launched ZoomMe, a peer-to-peer fiat and crypto remittance service that allows users to send funds instantly to friends and family. Funds can be sent internationally in either USD or crypto, and the service functions similar to existing mobile payment apps such as Venmo, but with the added option of transferring digital assets.
Available on Google Play and the Apple app store, such mobile payment features place CoinZoom in a competitive yet growing marketplace, as consumers eschew cash in favor of digital payments.
Crypto Card Economy
A choice of five physical Visa debit cards bring CoinZoom’s selection of cryptocurrencies into the real world, allowing crypto and fiat funds to be spent at 53 million merchants worldwide. The debit cards fall into five tiers, with each requiring a set amount of ZOOM holdings to become eligible, ranging from 1,000 to 100,000 tokens.
The introductory tier gives users 1% cashback rewards in the form of ZOOM tokens for purchases made with the card. It grants ATM access, 24/7 user support, and card security features, while also extending the user’s ZoomMe daily transfer limit to $500.
The next tier of card requires 3,000 ZOOM tokens to become eligible, and introduces 10% trading fee discounts, while increasing cashback rewards to 2%, and extending the ZoomMe daily limit to $1,000.
The subsequent cards are dubbed Gold, Platinum and Black, with each expanding on the perks mentioned previously. With the Black card, cashback bonuses are increased to 5%, while trading fee discounts are raised to 50%. ZoomMe daily transfer limits are increased also to $10,000 per day.
Staying ahead of the recent crypto trend that sees users stake their funds in return for profitable yields, CoinZoom also offers a staking service that returns 7-13% returns (APR) per year. This is made possible by the Proof-of-Stake (PoS) consensus mechanisms of the tokens in question – namely Dash (DASH) and Algorand (ALGO) – that reward users for staking tokens and securing the network.
Holders of the Gold, Platinum, or Black Visa cards also receive 0.25% to 0.75% bonus rewards on their staked funds.
Legality: License and Registration
In the past ten years, the pattern of seeing cryptocurrency exchanges exit scam or fall foul of authorities has been a common one.
At the moment, while cryptocurrency remains legal if not necessarily legislated, very few exchanges have managed to successfully navigate the choppy regulatory waters required to gain licenses to operate on U.S soil.
Anticipating that the U.S would become a prime market in the near future, CoinZoom acquired Money Services Business (MSB) status in 50 states, while also becoming legally recognized as a money transmitter in 48 territories, with New York and Hawaii still pending. The exchange’s team also expects to gain a BitLicense in the coming months, which would make it just the third platform to gain the regulatory stamp after Coinbase and Gemini.
CoinZoom has emerged as a nimble competitor in the crypto exchange landscape, with SimilarWeb data showing over 250,000 unique visitors since going live in March 2020.
Like most modern exchanges, CoinZoom delivers all the expected bells and whistles of a cryptocurrency trading platform as standard. Its desire to expand into the world of digital banking is evidenced by the launch of various financial tools, while its successful quest to secure U.S licenses inspires confidence in the long-term.