Bitcoin startup BSave PLC has launched its first product, a Bitcoin savings account that is said to offer attractive rates, a user-friendly interface and cutting-edge security.

Based in London, BSave is offering a service that allows Coinbase, Inc. users to profit from their dormant Bitcoins through depositing them in a BSAVE saving account where they will immediately begin to receive daily interest payments.

Although not made clear as to how, BSave says its savings account guarantees full liquidity, with users able to withdraw their funds at any time at no additional cost, despite disclosing on their media release that “accounts and value balances are not subject to FDIC and other consumer protections.”

Security wise the company claims user can be secure in the knowledge that they are fully protected by encrypted SSL (https) and multi-signature technology, and that they further only use Coinbase’s service and API meaning that they won’t be able to debit an account without authorization because of double factor authentication.

“Neither, [sic] BSave has access to your password,” the company notes. “Our system ensures that all the Bitcoin in your BSave account can only be withdrawn to the unique associated Coinbase wallet.”

Something missing

On the face BSave’s offering appears to be a solid one, the team behind the startup appear to have reasonably solid backgrounds in finance, and they claim by press release that they raised a $400,000 seed round of funding in October 2015.

But something doesn’t seem to sit right here.

Their press releases are appalling bad and there are spelling errors on their website; while not inspiring confidence to be fair those alone don’t make a bad company versus them being new to the business and inexperienced, and the founders at a guess don’t have English as their first language even if the company is based in the United Kingdom.

The real concern comes down to their guarantees of full liquidity and their alleged funding.

Why don’t they name where the seed funding came from? If it’s from an early stage venture capital company it would be highly unlikely the investor would not want to be named, and if it’s from private individuals, or even the founders themselves, it should be denoted as such.

The guarantee of full liquidity is nothing but hollow words without some actual proof of how the guarantee is provided: do they have insurance for example in case they are hacked or something else goes wrong?

Sure, FDIC insurance doesn’t apply to Bitcoin savings firms, and doubly so for those outside of the United States, but the trend with legitimate Bitcoin startups over the last 12-18 months has been for the startup to have private insurance for the funds they take from clients.

The concerns may all amount to nothing and the company may indeed be completely legit, be it somewhat amateur, but if you are thinking about investing your Bitcoin with BSave you should be asking the very same questions and only deposit as many Bitcoin’s with them as you can potentially afford to lose.

Image credit: BSave/screenshot