A growing crypto store in the heart of Russia has garnered attention for a while now, given its unconventional method of doing business, and its involvement in cryptocurrencies as a recognized payment platform in its crypto-focused store.
The store, DeeCrypto, which is yet to spend an official year in operation, has dared to forge uncharted waters in the cryptocurrency industry, challenging the simplest of multi-class competitors. DeeCrypto would be a one-of-a-kind shop that became incredibly popular due to the unusual service it rendered.
The store was the first to seize the growing mistrust in the Russian cryptocurrency trade of miners, by pulling the oldest trick known from basic financial acuity: physical contact. The store became a spectacular hit in Central Moscow last year when the cryptocurrency market industry was at its peak. The revitalized store was one of the few dealers in the world that actually sold crypto mining equipment offline, in physical bulk unlike the common online order.
According to reports from Business Times, DeeCrypto has failed to hit its previous peak of last year and is now currently struggling following the bearish crypto market industry.
The Physical Touch
DeeCrypto owes much of its success to the increased rate of online fraud in 2017, as traders and miners got duped of their hard earned coin- fiat or not. A physical store offering nearly the same services needed in the cryptocurrency mining industry was a huge reprieve for miners who were having trouble receiving online-ordered items. Denis Onatsik, the founder of DeeCrypto, explained why the store was a success amongst Russians.
“Because people trust things more when they see it on the shop floor, where they can come in, look at it, touch it, see it when a salesperson explains to the buyer what the equipment does, how it functions,” he enthused. “There’s a big risk factor when you buy online. There has been plenty of fraud in the sector – the machines that never arrive, bitcoin that you pay for but never get.”
While the mining industry was a lucrative one for Bitcoin miners last year when the coin performed well, 2018’s collapse of BTC has seen it barely profiting after the value of the same mining rewards dropped against the dollar. The mining industry would only be targeting the next crypto bull run as its too, and rightly so. Denis added:
“Today, these [mining machines] cost between 35,000 and 50,000 roubles (S$740-S$1,056), whereas when the shop opened in February, the price was many times higher.”