After the fork in August, Bitcoin broke into two - Bitcoin and Bitcoin Cash. LocalBitcoin, which is a P2P marketplace for bitcoin, does not support Bitcoin Cash. This has made the development of such a marketplace necessary. A Reddit user, MobTwo, reported that he is in the process of building LocalBitcoinCash, which is the Bitcoin Cash version of LocalBitcoin.
The escrowed marketplace is expected to be completed by the end of October and will provide investors with an attractive marketplace to buy and sell Bitcoin Cash. A P2P marketplace is necessary for expanding a cryptocurrency and are crucial for its adoption. Since the fork in August, the Bitcoin Cash network is rebuilding its infrastructure for Bitcoin Cash adoption.
MobTwo revealed that there will be no fees for buying or selling on the platform, nor will it charge for bank deposits. The market place will link the sellers and buyers of the Bitcoin Cash network as well as provide an escrow function for online trades with an optional meetup functionality. The site will be dedicated entirely to Bitcoin Cash and will basically be a copy of LocalBitcoin, but with a different revenue generation model. While talking about the new service, MobTwo stated:
“I won't do it like localbitcoin. Again, I will reiterate that there will be no fees including bank transfer and escrow trades. Obviously no fees for meetup too. Unless circumstances force me to do that, it will stay that way. Revenues to sustain the site will come from elsewhere.”
LocalBitcoins was formed in 2012 and is based out of Helsinki, Finland. The site includes an escrow and wallet functionality as it connects Bitcoin buyers and sellers from all across the world on over-the-counter trades.
The need to build a dedicated platform for Bitcoin Cash arose when LocalBitcoin burned all bridges with Bitcoin Cash after the fork of August. The peer-to-peer marketplace, instead of providing its users with a Bitcoin Cash balance, compensated them with bitcoin on September 25th. The marketplace does not support Bitcoin Cash. A peer-to-peer market place are an important step for cryptocurrency adoption, as users can quickly buy and sell cryptocurrency without having to verify or following the strict KYC procedures. This is the reason why different cryptocurrencies develop their own marketplaces, just as Monero did when they developed LocalMonero on August 30th.
Observing the gap in the service of LocalBitcoin, Alex, a developer from Monero, promised the integration of Bitcoin Cash into LocalMonero, if the idea gains traction. He stated:
“Hey /r/btc! Alex from LocalMonero here. We've received some requests to create LocalBitcoinCash, I just wanted to know about how popular this idea really is. If this post gets 1K upvotes we'll take this as a sign that there is a real demand.”
LocalBitcoinCash will fill the void left by the fork of Bitcoin, and MobTwo intends to launch the platform by the end of October.