The integration of NuBits into the Bittylicious platform has now taken place. My Seller account is active and I am ready to start Liquidity provision as soon as possible.
Bittylicious stands apart from traditional cryptocurrency exchanges. Based in the UK but serving much of Europe, it is a meeting point between buyers and sellers and acts as a mediator in their peer to peer trades. These trades usually involve bank transfers from the buyer but other payment methods are available.
Bittylicious has a strong leaning towards legal compliance. As a seller on the platform, I have had to go through full AML/KYC verification. To my mind, this lends legitimacy to the operation on their platform.
I hope that Shareholders will see the opportunity that Bittylicious can provide to the diversification of the Nu networks’ liquidity provision and the addition of a fiat route into Nu.
I want to get some initial feedback on my idea for a grant proposal. The amount I am asking for is a lot more than other grants that we have seen in recent times when viewed as a percentage of the provided liquidity. I feel that there may be some questions about this which I would like to address before making a formal proposal.
The larger proportional amount requested is due to two main reasons:
Operating on Bittylicious is more labour intensive than other forms of liquidity provision. There has already been a fair amount of work to get to the stage where NuBits are listed there. There is also work to do in the setup of the Seller account and once trading starts, an expectation that I will be available to check bank accounts, verify trades and resolve issues.
More importantly, I only have a relatively small amount of funds to bring to market. By asking for (and hopefully receiving) a proportionally larger grant, I can start the operation with more liquidity available.
Under the terms of the Securty Deposit, we have three months starting from when my Seller account goes fully active to turn £20,000 in volume. I would like to think that I have done everything I can to ensure that happens.
I have 800 NBT available to provide to this operation. I would like to ask Shareholders for a further 400 NBT. That gives a total of 1200 NBT which I would make available on Bittylicious for 30 days. Any funds from the sale of these NuBits will remain in the dedicated bank account I have set up for this purpose and be used to buy NuBits through the Bittylicious platform.
My longer term expectation is that once I have a feel for the sorts of voumes to expect for each 30 day period, I can keep a pot of funds aside for the trades. This will lower the proporational amount that I ask for in future grants. I feel it is important for this first run to have as much available as possible to try and drive the volume.
I would hope that, in time, other community members decide to become Sellers on Bittylicious and offer liquidity in a similar way. I believe it to be a lower risk method of providing NuBits at a true $1 value and a valuable addition to Nu.
I would like to invite Shareholders to comment on my draft proposal and would welcome suggestions for other options that I may not have considered. I am hesitant to run a pool, operating with shareholder funds as, with the regulatory measures in place on Bittylicious, and the fact that funds would pass through a bank account held in my name, I feel that i would fall foul of money transfer laws and very quickly be shut down and/or get into legal hot water.
If there aren’t any major objections to the proposal I have layed out by tomorrow evening, I will write up a formal proposal and allow voting to begin. Thanks for reading.