Note! This report draws on information contained in confidential communications and sensitive documents, which cannot be publicly revealed at this time. Readers who are not comfortable with the confidential nature of the report should independently verify the information contained therein, and investors and masternode owners should do their own due diligence before directly acting on this information.
BitCart’s Dash integration agreement
Early this year, BitCart and Dash Core’s business development department entered into discussions regarding an integration of Dash into the platform. An agreement was reached in March, and Dash was integrated into the platform in exchange for financial compensation to cover the developmental costs of providing this new service. This was initially done via a mutually-signed memorandum of understanding. Also specified in the agreement was the initial 20% discount for using Dash to purchase gift cards, while Bitcoin retained the usual 15% discount.
As a result of this integration, BitCart’s volume grew more than had been anticipated, leading to performance issues that made clear that the current platform was inadequate to support said volume.
A mutually-understood long-term partnership
Discussions continued between Dash Core and BitCart as to a continuing partnership. In May, a second memorandum of understanding was signed, in which a 12-month exclusivity deal was signed for BitCart to only support Dash, and no other coin, on its site. Additionally, Dash Core agreed to support BitCart’s long-term developmental roadmap, including the construction of an automated system for processing gift cards efficiently to support the increased volume experienced. The roadmap can be found here.
To reiterate: BitCart undertook a significantly increased order volume, and committed to the Dash community to provide an automated and improved platform to shield this volume, based on a signed agreement from Dash Core to provide vital assistance in reaching this goal.
An unexpected communication breakdown and its effects
Several months ago, following the previously signed memorandum of understanding, regular communications between the two parties ceased. During the months of August and part of September, BitCart did not receive a prompt response from Dash Core’s business development department. More importantly, the next stage of anticipated funding was not able to be acquired. This provided complications when BitCart was ready to pursue the next step of developmental roadmap. Communication was then established with Dash Core’s CEO, who was handling some business development work, but was unable to give that department the attention it required.
As BitCart moved to Phase 2 of its developmental roadmap, which would enable seamless automation of its service for a smooth customer experience, Dash Core was contacted for financial support as previously mutually understood. However, BitCart was informed that, due to complications arising from the unplanned sabbatical of a key team member, and because of a policy change away from more casual memorandums of understanding, previous agreements would need to rewritten, formalized, and combined into one. BitCart CEO Graham de Barra emphasized the urgency of the situation, stating “it’s vital that we answer to the Dash community…” on the 24th of September. At time of writing, no formal agreement between the two parties has been reached, and as such no additional developmental funding was provided to BitCart.
As an end result of the lack of expected support, BitCart’s present ability to deal with presently incurred volume, as well as fulfill expectations of continued development, remain hampered.
BitCart’s difficult present position
Due to the inability to fulfill their obligations, BitCart, as well as its affiliated project Festy, decided to seek support directly from the Dash masternode network, rather than wait to see if Dash Core would once more become a viable partner, and submitted a proposal to fund both ventures. After pushback from the community (much of it arguably due to the absence of the information contained in this report), BitCart attempted to resubmit the proposal to diffuse the requested budget over several months:
“We have resubmitted this proposal as requested by members of the community. The proposed payment is now split into 3 installments instead of the one-off payment. It should be going live shortly, we have contacted support as we actioned the amended proposal approx 7 hours ago and suspect it has been blocked by a security measure that protects against spam (the title of the new proposal is the same as this one).”
At time of writing it has been over two days since the proposal has been resubmitted, however it has yet to appear on Dash Central. Support staff for Dash Central remain unreachable.
Finally, BitCart expressed a longtime desire to avoid any complications with, or appearing critical of, Dash Core, due to the two parties’ previously fruitful business relationship. This may have been integral to the shape of BitCart’s communications regarding their service disruptions, which in the past revealed very little as to the nature of the issues they were experiencing, potentially in an attempt to avoid putting their business partner in a difficult position. According to De Barra: “I much prefer the style of fixing problems outside of the public, as the saying goes one shouldn’t hang one’s dirty linen out in public.”
Dash Core Group will be contacted for a follow-up in order to accurately represent all parties involved.