Romit, the remittance service, which earlier started as Bitcoin ATM manufacturer Robocoin , announced it is closing all its BitcoinCT r: 9 related services with effect from February 15th 2016.
The company now seems to have moved on to more traditional forms of payments for its entire business.
What could have been the motivation of Robocoin to close all its Bitcoin related services entirely? Did they have to close because of their own incompetency? Or Is the BTM business not beneficial anymore? CoinTelegraph conducted a survey of experts from the Bitcoin ATM market. Their own doing?
Robocoin was one of the first entrants in the business of Bitcoin ATM manufacturing. Did they have to close their business because it was not sustainable anymore because of their own shortcomings? Most industry experts believe that this is the case. “They did not give out full control of the machine, had extremely expensive (and impractical) hardware and wanted to retain a portion of operator’s profit. Their business model was risky and it now failed. It’s their own business decisions and attitude towards operators that caused their downfall.” Eric Grill , CEO of CoinOutletCT r: 278 also believes that fault lies with Robocoin itself: “Robocoin machines were never very well received by the community , the unfair contracts they made the operator’s sign with them was pushed onto the customer in extra fees not to mention the exorbitant pricing structure.” BTMs not Profitable Anymore?
Another reason why Robocoin had to close its Bitcoin services could be because the entire market for BTMs is not profitable anymore.
Michael Dupree , founder of Easybit, thinks it is a two way street. As per him, it is a difficult business but profit is possible.
Dupree said: “It’s not really about a profit model it’s more about logistics and compliance […]
