Cash Cloud Inc., dba Coin Cloud
| ISIN | 🆔 |
|---|---|
| Industry | Financial |
| Founded 📆 | April 2014 |
| Founder 👔 | Chris McAlary |
| Headquarters 🏙️ | , |
Area served 🗺️ | |
Key people | Chris McAlary (CEO) Jeff Garon (COO/CFO) Bobbi Wilson (CPO) |
| Members | |
Number of employees | |
| 🌐 Website | www |
| 📇 Address | |
| 📞 telephone | |
Coin Cloud is an American digital currency kiosk, or Bitcoin ATM, company. It was founded by CEO Chris McAlary in 2014.
History
Coin Cloud was founded by Chris McAlary in April 2014, in Las Vegas. The former high-stakes poker player had become interested in bitcoin mining because the cryptocurrency was easier than USD to move in and out of offshore gambling sites.[1] He built his first bitcoin mining rig and divided his time between mining bitcoin and playing poker, online and in Las Vegas cash games. [2] When several major online poker sites were forced to shut down in 2011, and McAlary lost all his assets in the process, he turned to cryptocurrency trading.[1]
First Bitcoin ATM on the Las Vegas Strip in 2014
After hearing about a Bitcoin ATM prototype, McAlary enlisted his former college roommate, attorney Joshua Schlachter, to figure out the legal regulations around running such a machine in Las Vegas.[2] They placed the first Bitcoin ATM (nicknamed the Bitcoin Bodega) on the Las Vegas Strip at the Viva Vegas souvenir shop, across from Aria Resort and Casino and the Crystals at CityCenter shopping center, in July of 2014.[3][4] The machine was manufactured by Robocoin,[2][5] the same company that made the world's first Bitcoin ATM, which went live in Vancouver, BC, nine months earlier in October 2013.[6][7]
Coin Cloud installed its second Bitcoin ATM in Downtown Las Vegas, in December 2014. The machine was located in the Gold Spike Hotel & Casino, and manufactured by BitAccess.[8]
Expanding the Network in 2016
By 2016, Coin Cloud had 15 Bitcoin ATMs, and McAlary was making plans to distribute them nationwide, in easily accessible locations such as convenience stores, vape shops and gas stations, with a goal of providing financial services options for the underbanked.[9][10][11] Its 15th and 16th BTMs were installed in The Plaza Hotel & Casino and Lucky Dragon Hotel & Casino.[12][13]
"People are drawn to bitcoin because it empowers them to take on the advantages that come with existing outside of the traditional banking system," McAlary told Coindesk in 2016. "With that come some risks which novice users may not be ready for. Successful bitcoin companies will build products that minimize that risk."[14]
While interest in bitcoin was growing in 2017, not everyone was ready for cryptocurrency, or Bitcoin ATMs, which were still causing some confusion. Transaction times could also be slow for those who did adopt the technology, due to blockchain verification processes.[15]
Riding the Bitcoin Wave in 2018
In 2018, Coin Cloud continued accelerated growth, installing 8 BTMs in Minneapolis alone. Interest in cryptocurrency was growing in the wake of bitcoin reaching its all-time high value of almost $20,000 in late 2017. “I was excited to bring it in because it had a lot of news hype about bitcoin in the media,” Assad Awaijane, manager of Stop N Shop on E. Lake St., told the Star Tribune newspaper in Minnesota. He leased space to Coin Cloud after his son, a bitcoin investor, had told him about the growing trend and recommended putting a Bitcoin ATM in the store.[16]
Current Operation
As of August 2020, Coin Cloud is the top operator in the U.S. with over 800 machines.[17] All Coin Cloud machines are two-way, allowing for both buy and sell transactions. This type of machine represents just over 30% of all Crypto ATMs currently in operation worldwide, and less than 23% in the United States. So Coin Cloud now operates over 54% of all two-way Bitcoin ATMs in the U.S.[18][10]
The newest kiosk design is proprietary.[19] Nicknamed the Blue Box, the current model is significantly smaller than the original at 1.9 square feet.[20]
In June 2020, Coin Cloud expanded internationally for the first time, sending 10 Bitcoin ATMs to São Paulo, Brazil.[21]
Products and Services
Coin Cloud operates a network of two-way digital currency machines, also known as cryptocurrency kiosks, Bitcoin ATMs or BTMs. These machines allow users to buy or sell Bitcoin and other virtual currencies with cash. Coin Cloud kiosks can be found at convenience stores, gas stations, supermarkets and casinos.[19]
Fee Controversy
A complaint about Bitcoin ATMs is that they have higher fees than other ways of buying and selling digital currency, such as online exchanges. McAlary says this is due to the nature of the brick-and-mortar business model, which requires renting retail space, repair and maintenance of the machines, and cash logistics, including security and armored truck services. In addition, there are significant costs involved with running a regulated and legally-compliant money services business with full-time compliance officer and staff, as well as banking fees in three separate categories: MSBs, Bitcoin-related businesses and cash-intensive businesses.[19] The trade-off for higher fees is the relative privacy, direct cash-to-digital currency transaction, and convenience involved with using a self-serve kiosk.[11]
Compliance
Coin Cloud is registered with the Financial Crimes Enforcement Network (FinCEN) as a licensed Money Services Business (MSB) and has a full-time Bank Secrecy Act (BSA) compliance program in place, including all Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.[19][22]
References
- ↑ 1.0 1.1 https://www.gambling911.com/businessfinancial/poker-player-bitcoin-miner-chris-mcalary-talks-coin-cloud-atm-113014.html
- ↑ 2.0 2.1 2.2 https://www.fastcompany.com/3035594/why-bitcoin-is-poised-to-win-big-in-las-vegas
- ↑ http://www.bitcoincasino.org/first-bitcoin-atm-set-up-on-the-strip-in-sin-city
- ↑ https://techcrunch.com/2014/07/30/robocoin-opens-the-first-bitcoin-atm-in-vegas-baby/
- ↑ https://www.gamingtoday.com/articles/article/48454-First_bitcoin_ATM_launches_on_Las_Vegas_Strip
- ↑ https://mashable.com/2013/10/30/bitcoin-atm-2/
- ↑ https://coinatmradar.com/blog/bitcoin-atm-profitability-part-2-real-examples/
- ↑ https://www.kioskmarketplace.com/news/coin-cloud-unveils-bitcoin-kiosk-inside-las-vegas-casino/
- ↑ https://cointelegraph.com/news/coin-cloud-moves-to-spread-bitcoin-atms-across-the-united-states
- ↑ 10.0 10.1 https://bitaccess.ca/blog/bitcoin-americas-unbanked/
- ↑ 11.0 11.1 https://www.vice.com/en_us/article/ezppkp/bitcoin-atms-unbanked-regulation
- ↑ https://www.gamingtoday.com/industry/article/64175-Coin_Cloud_expands_into_The_Plaza_Casino_and_Lucky_Dragon
- ↑ https://news.worldcasinodirectory.com/coin-cloud-to-launch-additional-bitcoin-atms-in-two-las-vegas-casinos-38039
- ↑ https://www.coindesk.com/rethinking-bitcoin-market-cap
- ↑ https://vegasinc.lasvegassun.com/business/2017/jun/12/bitcoins-value-surging-but-local-acceptance-of-the/
- ↑ https://www.startribune.com/bitcoin-atms-are-popping-up-across-the-twin-cities/497312481/
- ↑ https://coinatmradar.com/charts/top-operators/
- ↑ https://coinatmradar.com/charts/buy-sell-share/
- ↑ 19.0 19.1 19.2 19.3 https://eng.ambcrypto.com/bitcoin-atms-may-seem-convenient-but-are-they-really/
- ↑ https://www.coincloudatm.com/blog/coin-cloud-turns-6-years-old
- ↑ https://www.coincloudatm.com/blog/coin-cloud-goes-international
- ↑ https://www.coincloudatm.com/about
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