I have seen a number of people, who missed out on the snapshot asking to exchange some of their real ADA for tADA, to participate within the Incentivised test network.
This got me thinking about how high risk this scenario is, sending potentially large amounts of ADA, with blind faith in a stranger that the agreed amount of tADA would be returned. In most cases, having no way to identify the other party if it goes wrong… I certainly wouldn’t be the first to send.
I wanted to see if anyone has done this trade, what way around were you, what was the exchange rate and did it complete successfully, or were there any problems?
Someone recently wanted to start their own stakepool and offered to exchange, I exchanged with them at a ratio of 1:1 - I gave tADA in exchange for ADA.
I received the funds first and returned the identical amount back in tADA. As an active community member and Ambassador my reputation and position in Cardano would be compromised if I failed to hold up my side of the agreement. Therefore felt the risk had been significantly reduced if I became the person to receive ADA first.
Let me know your stories and thoughts…
As a small side note; for future, if someone wants tADA, contact me via Telegram @Lgbeano - confirm my Ambassador tag in the official channel first before private messaging me, as there are imposter accounts out there (I will not DM you first for this matter). I am happy to have this discussion
Awesome man! I wanted to and then I backed off, I was going to do it to support my wifes project but could not put together a plan to make it work soon enough.
I think I might have started this conversation of trading tADA and I did so to basically to help onboard a few more people to the test network, if someone seriously wants to participate in testing and be a part of developing our community I felt they need know that there is a way for them to get in, trading for tADA will allow for that.
The high risk of making trades is very much underestimated, everyone can see the financial risk, risk to your reputation is as great, how do you protect yourself? If dealing in large amounts seek an escrow, they can protect you from ‘Bad Actors’.
I completely agree, especially if you make a deal with an account which can’t be identified, say a Telegram user for example.
I would say the odds would be that once one party receives their side of the trade, they could easily leave without repercussion, unless of course they have a reputation within the Cardano community that they themselves respect.
This becomes more risky once the amount of ADA tADA increases. I would be the person who would insist on receiving ADA first, then sending tADA in return at the agreed amount.
A trusted Escrow party would receive both sides of the transaction, once both parties submit the agreed amount to the control of the escrow and it is confirmed on the respective blockchains, then the escrow will send the sums to the parties and this eliminates personal risk of the traders, do not put yourself in a spot where it is solely your word against someone else my friend! That is risky.
Even if you receive first and send last it protects you financially, yet I cannot stress enough that you need protect your reputation during such trades.
This sounds like a smart contract or relying on a third person, which has its own risks. Especially if one of the people involved in the transaction has a higher trust level than the escrow.
There certainly are a number of variables to consider with this type of exchange. An interesting conversation.
Re thinking, I probably wouldn’t trade a small amount, but would consider trading 300k test network ADA for 100k Main network ADA
