Generating $32,000 in 30 days selling a crypto-filled USB stick

#1

Post by patwalls » Thu, Mar 29, 2018, 4:45 PM UTC

Generating $32,000 in 30 days selling a crypto-filled USB stick
starterstory.com

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#2

Post by gtsteve » Thu, Mar 29, 2018, 5:12 PM UTC

If this website looks blank it might be because Privacy Badger is blocking contentful.com, whatever that is. I'm not sure what to make of that really, any ideas?

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#3

Post by Palomides » Thu, Mar 29, 2018, 5:13 PM UTC

nice, a classic "shovels during a gold rush" business

edit: misread it, thought they were just selling empty setups w/ software

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#4

Post by Karunamon » Thu, Mar 29, 2018, 5:15 PM UTC

gtsteve wrote: post #2

If this website looks blank it might be because Privacy Badger is blocking contentful.com, whatever that is. I'm not sure what to make of that really, any ideas?

Looks to be some kind of dev-centric publishing tool that also does CDN duties.

https://www.contentful.com/faq/about-contentful/#what-is-con...

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#5

Post by tlrobinson » Thu, Mar 29, 2018, 5:18 PM UTC

I wouldn't recommend using this for non-trivial amounts of money for hopefully obvious reasons

Nor would I recommend the founders continue to run it unless they've consulted a lawyer and are aware they're likely running a money transmitter business. See https://en.bitcoin.it/wiki/Casascius_physical_bitcoins#Suspe...

Accepting credit cards as payment for cryptocurrency is also a risky proposition, to say the least.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#6

Post by nicpottier » Thu, Mar 29, 2018, 5:19 PM UTC

Err.. aren't these guys going to run into regulatory problems? You need a license to sell this in the US. Not to mention selling crypto with credit cards is a great way to go broke unless you own the keys like Coinbase does.

Also, why would you trust the keys they are sending you? Having someone else generate a wallet for you then sending it to you via a USB key sounds very very bad.

I don't get this.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#7

Post by rileyphone » Thu, Mar 29, 2018, 5:19 PM UTC

Nice to see a startup in Miami getting some press, but I wish it were a little more...impactful. Props to them though.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#8

Post by bpicolo » Thu, Mar 29, 2018, 5:21 PM UTC

Palomides wrote: post #3

nice, a classic "shovels during a gold rush" business edit: misread it, thought they were just selling empty setups w/ software

They're selling the currency. The delivery method just happens to be a USB drive.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#9

Post by htormey » Thu, Mar 29, 2018, 5:24 PM UTC

nicpottier wrote: post #6

Err.. aren't these guys going to run into regulatory problems? You need a license to sell this in the US. Not to mention selling crypto with credit cards is a great way to go broke unless you own the keys like Coinbase does. Also, why would you trust the keys they are sending you? Having someone else generate a wallet for you then sending it to you via a USB key sounds very very bad. I don't get this.

I agree. Have these guys done any legal due diligence on any of this? Any lawyers care to chime in? I thought you couldn’t do this in many states without a money transmitter license.

Also, does this constitute financial advise? That’s also a big no no in the USA. The CoinTracker guys (current yc batch who make an app for tracking crypto) mentioned that as a reason for not offering a portfolio management product right out of the gate.

Also doesn’t stripes terms of service basically prohibit this? I bring this up because in the interview they say the following:

“What platform/tools do you use for your business?

Stripe for payments”

This is what Stripes TOS says:

“By registering with us, you are confirming that you will not use the Service to accept payments in connection with the following businesses, business activities or business practices.”

“Virtual currency that can be monetized, resold, or converted to physical or digital products and services or otherwise exit the virtual world (e.g., Bitcoin); sale of stored value or credits maintained, accepted and issued by anyone other than the seller ”

https://stripe.com/ca/prohibited-businesses

I think this is a cool idea, I’m just not sure if they are going about it in a compliant way. If they are doing the right thing they should stick a FAQ up on their launch page ASAP.

Assuming they are doing this legally I’d also love to know how they are handling taxes when they buy these 100 currencies. I.e when you buy alts using eth/btc that’s a taxable event. How do they factor that into the pricing.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#10

Post by mieseratte » Thu, Mar 29, 2018, 5:25 PM UTC

nicpottier wrote: post #6

Err.. aren't these guys going to run into regulatory problems? You need a license to sell this in the US. Not to mention selling crypto with credit cards is a great way to go broke unless you own the keys like Coinbase does. Also, why would you trust the keys they are sending you? Having someone else generate a wallet for you then sending it to you via a USB key sounds very very bad. I don't get this.

> Not to mention selling crypto with credit cards is a great way to go broke unless you own the keys like Coinbase does.

I look forward to the "How I lost $32,000 selling crypto-USBs" after the fraud claims and chargebacks are filed.