Last weekend had been a very eventful weekend for us at Sheldon Store as on the 8th of February 2019, we announced our support and addition of CoinPayments CPS coin as payment option to both our stores Sheldon Store and Sheldon Store – EU for customers who have long awaited this addition. Not quite 24 hours into the addition of CPS coin to our stores, our supper excited customers had already placed and paid for orders worth approximately $20,000 on both Sheldon Store and Sheldon Store – EU. See screenshots below.
Sheldon Store Web Wallet
Sheldon Store – EU Mobile Wallet
This was the best sales we had made in a while within a period of 24 hours and we were super excited about it. We had our little moment, shared a few drinks and felt pretty good about ourselves and the effort we had put in to make this happen. However, just as we were about to get comfortable, with the new orders rolling in, we hit a brick wall that turned our smiles to frown.
At Sheldon Stores, we have different teams working together to make sure offering goods and services to cryptocurrency users from all around the world is a smooth and well organised operation.
- We have the sales team; They process and deliver orders, they manage inventory and make sure out of stocks products are restocked as soon as possible with new products added in a timely manner. They make sure your order gets from *Paid to *Delivered monitoring progress at all stages, they are also responsible for making sure products are stocked authentic and remain authentic unto delivery. They are basically in charge of all sales related activities.
- We also have the customer support team. They respond to all general inquiries. They work with every other team to make sure customer concerns are addressed accordingly.
- The marketing team. They are responsible for all things marketing.
- Administrators. They make sure all our services remain online. They make sure our store websites, blogs, emails are operational at all times. They are also responsible for managing our various payment gateways. They add/remove accepted coins/tokens as the case may be. They also assist our customer support team when needed.
- Last but not the least, our trading and exchange team. They are the ones who keep us from making mistakes in exchanging accepted cryptocurrencies on our store to any fiat currency we require and back to cryptocurrency. They also close partnership deals with different cryptocurrency exchange services from all around the world. They also negotiate with exchange services to accept certain coins so we can add to our stores when necessary. The number of coins/tokens we accept on our stores lies on their shoulders. All things exchange/trading/cryptocurrencies are handled by them.
Why all this information you may ask? Before adding a new coin/token to our stores, these different teams come together to decide whether or not accepting the said coin/token will be valuable/easy to use or even, eCommerce friendly. Our trading and exchange team also help us determine if a coin can be exchanged to any fiat currency and back as the case may be. As such, we decided to add CPS coin to our stores because our trading and exchange team found a way to exchange CPS coin to USD/EUR and back
While we loved what we were seeing in terms of the number of paid orders we had received within a few hours, our trading and exchange team spotted a major problem that brought incoming orders to a complete stop. We were informed of a huge exchange rate difference of over -100% to what we had on our stores. We noticed the set exchange rate for the CPS coin by CoinPayments was 1 CPS – €0.1, while our exchange service partners traded 1 CPS coin at €0.002. This was a real issue as this rates were set by CoinPayments and not by crypto traders and exchange services.
To better explain, the exchange rate of 1 CPS to €.01 which was set by CoinPayments determined the amount in CPS coin a customer is required to pay to complete an order paid for in CPS coin. However, once an order has been paid for in CPS coin, we noticed we were unable to exchange the CPS coins to fiat or other coins due to the exchange rate difference. In short, the total of orders paid for in CPS coin which was valued at about $18,000 by CoinPayments was actually worth only about $893. This was a major setback in accepting CPS coin on our store and we were forced to remove CPS coin from our stores and stop all transactions in CPS coin.
What Happens Now?
CPS coin has now been removed from all our stores, permanently. CPS coin was introduced to the public over 8 months ago and we are yet to get a clear understanding of what the CoinPayments team intend to do with the CPS coin. Will the CPS coin be used as a rebate for withdrawal fees on the CoinPayments platform only? The CoinPayments team has put out instructions on how to exchange the CPS coin to other coins via the P2P exchange on CoinPayments but exchange orders are never filled as there is almost zero demand for the CPS coin with hundreds, maybe thousands of sell orders with almost no buy orders. Will the CPS ever be on an exchange? These are but a few questions we need answers to if we are ever to reconsider adding CPS coin to our stores.
To Our Customers
All orders paid for with CPS coin will not be processed. Customers with orders paid for with CPS coin will be contacted on how to request a refund. This is already ongoing and orders are already being refunded. If you are yet to be contacted or have requested a refund but are yet to get your funds back, please contact the support team of the store your order was placed.
We are really sorry we were unable to serve you this time. We remain committed to giving you more options to spend cryptocurrencies and we will continue adding new coins/tokens to our stores so you can get the products and services you desire with almost any coin/token.
We appreciate the work the CoinPayments team are doing in creating a multi wallet and payment processor for cryptocurrencies. Heck, we would not be where we are today without the CoinPayments payment system and the work they put in to improve on already existing infrastructure. However, when it comes to the CPS coin, the CoinPayments team needs to explain clearly what they intend to do with this coin, what this coin was created for, what they intend to achieve with this coin and most importantly if this coin will ever be listed on an exchange. A quick google search on how to exchange CPS coin to BTC or other coins will always bring up results showing how to do so with links to websites that do not or no longer exist. A good example is coinpaymentexchange.com where CPS coin was being traded on but suddenly disappeared with user’s funds. There are dozens of such websites out there with more springing up promising to exchange CPS coin to BTC which end up being scams. The question here then becomes, how many more scam will the CoinPayments team allow people to be victims of before the CPS coin becomes listed on a reputable exchange? Matter of fact is, if Sheldon Store was a scam, that would have been another $20,000 in CPS coin lost to another scam. Just a few hours after the incidence was reported to CoinPayments, there was a warning sign put up next to the CPS coin on CoinPayments discouraging merchants from adding CPS coin as a payment option. They did not have to wait for this to have happened to take that step but we are happy this could lead to any other business not loosing money by adding CPS coin. The CPS coin was created and managed by CoinPayments, they need to own this coin.
Is It Still Safe To Order On Sheldon Store/Sheldon Store – EU?
Yes. It is safe to order on Sheldon Store and Sheldon Store – EU as it was never a matter of security. There was no security breach, customers payments and funds are safe, customer information and various order details are safe and orders paid for with other coins/tokens are still being processed and delivered. If you have any question about the safety of any of our stores, please feel free to contact us at any time. Remember, Sheldon Store has never and will never scam anyone. If you ever need any assistance, please feel free to use any of our customer contact options available.
Until next time, stay awesome…