A CASE STUDY ON KOINWA
KoinWa is a P2P cryptocurrency exchange for buying & selling Bitcoin with crypto loaning features. The platform is currently operating in Nigeria and Kenya, two of the countries with the highest cryptocurrency adoption rate in the world according to Chainalysis. Nigeria and Kenya are very competitive markets with hundreds of exchanges vying for a piece of the market, these markets had a reported trade volume on local exchanges of over $566M and $55M respectively in 2020 according to a report by Quartz.
Sub-saharan Africa has one of the lowest rates of access to loans/credit in the world, and usually with a high interest rate when available, KoinWa offers non-collateralized crypto loans via a credit score system where either a trader who has completed huge transaction volumes on the platform stands as a guarantor for a loan taker or a loan taker gradually builds their credit score by referring users to KoinWa.
KoinWa initially built their custom multi-sig wallet infrastructure leveraging APIs from 3rd party wallet platforms. This resulted in a lot of manual frictions with maintenance, it required more time and technical know-how-to to properly keep things going smoothly. There was no room for automation in settings parameters for mining fees accrued from users transacting on the platform.
KoinWa quickly realized they needed a flexible, secure, easy to set up and easy-to-use wallet infrastructure that gave them the automation needed to streamline their operations and save them costs, especially from transaction fees.
KoinWa, a crypto asset business looking for a wallet infrastructure option to scale operations in a competitive market considered security, affordability, technology, scalability, liquidity, high throughput, and access to a high number of crypto assets. They chose THRESH0LD, an MPC (Multi-Party Computation) wallet infrastructure as it provided them all they needed currently and in the future.
KoinWa quickly took advantage of THRESH0LD’s features including wallet creation, policy engine, and mining fees collection management which allowed them to both manually approve transactions and automate them. Compliance and AML features to help them watch transactions that are coming in and out of their platform, to analyse transactions for addresses that have been blacklisted for scams, money laundering, and dark web transactions to avoid being flagged as a platform that receives a lot of illicit transactions and stays compliant.
KoinWa witnessed a drastic drop in mining fees paid on their platform operations which allowed them to save money. Security controls increased as THRESH0LD’s MPC wallet technology does not involve private keys but rather strictly API authentication driven.
KoinWa streamlined and scaled operations with THRESH0LD automation features taking away the need to manually manage systems that require more technical labour hires and leveraging on THRESH0LD’s customer support, there has never been a downtime.
KoinWa scored THRESH0LD a 95% rating in performance and we believe the remaining 5% is an opportunity to serve them even better
“ This is the best crypto wallet infrastructure API we have ever used since I have been in the crypto space. We are getting an excellent result for what we subscribed for ”
– Hakeem Disu, CEO of KoinWa