San Francisco Open Exchange or SFOX is an online trading platform that helps people find the best Bitcoin prices at various exchanges. However, unlike some other Bitcoin exchanges it does not actually allow traders buy or sell Bitcoin directly; rather, it provides a platform which facilitates finding the best price on these exchanges.
This sort of service is not being provided many other Bitcoin companies and understanding the requirement, this Y Combinator-backed startup is trying to provide an online trading platform that helps traders find the best Bitcoin prices at various exchanges. With SFOX, traders would be able to buy, sell and invest in Bitcoin exchanges which are like buying and selling stocks on e-Trade.
In his statement to media, the co-founder of SFOX, Akbar Thobhani said that when he found that using Bitcoin was even more expensive than using credit cards because there was not a lot of transparency, he started thinking that if he could find a way to compare prices this would help drive widespread adoption for the Bitcoin market.
He admitted that though there are a number of exchange services providers that help traders directly buy and sell Bitcoin; however, there is a need for an exchange or a platform that can provide the best prices. According to him SFOX aims to find its customers the best price for their Bitcoin and for that it is working with multiple exchanges and use algorithms to route the transactions.
Locating Bitcoin Exchange Will be Easy for Traders
SFOX says that it is trying to help traders locate the Bitcoin exchanges which according to it will help them know about the BTC exchanges and which jurisdictions they are falling in. Currently, 90 percent of all Bitcoin trading is done in the US; however, the most popular exchanges like Bitstamp and BTC-e are based outside of the country.
A problem that comes when the US traders trade with the Bitcoin exchanges located outside came to light when Mt. Gox collapsed and many of them lost their valuable investments. However, once they are able to locate the Bitcoin exchanges, they can make informed decisions while opening a trading account and avoid any potential losses.
If the Bitcoin exchange is located inside the US, there are currency regulations and the customers get their problems addressed; however, in situations like what happened to Mt. Gox, the US authorities feel helpless.
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This sort of service is not being provided many other […]