FIRST QUARTER PROGRESS REPORT AND DAILY WITHDRAWAL LIMITS
The contents of this announcement are point-in-time statements. Please note the date of publication.
9 MARCH 2021
The Block Trade Exchange (BTX) is pleased to give a progress report on its first quarter trading activities. We also announce a change to the daily sell limits.
Since the opening of BTX on 11 December 2020 the new registrations so far have reached 12,000 accounts. This has far exceeded our expectations.
Trading volumes reached a peak of AU$705,000 per day with AU$16.1 million volume of Qoin purchased from sellers for the first quarter.
With this growth a few new challenges have been identified:
- Sellers’ registering multiple wallets to take advantage of the daily withdrawal limits.
- Merchants using their incentive Qoin to withdraw cash.
- A significant increase in trading by individuals that purchase Qoin directly from the community but then cashing out daily on BTX.
- Some sellers who claimed to have been spooked by negative posts on social media channels.
The above activities have triggered a considerable increase in sellers. This has caused pressure on the sell side, and consequently a larger spread to the buy side price.
As a manager we have the responsibility to prudentially manage the BTX exchange on a sustainable basis for the long term. BTX must be protected against exploitation from the community or any abuse from outside the community. Based on the four new challenges above we have been advised to review and recommend corrective measures for the long term.
As a key objective it has been identified, after consultation with the leaders of the Qoin community, to better support and manage the liquidity demands of the community in general and, in particular the merchants, who supply ongoing products and services.
After considering the above, we advise that the withdrawal limits will temporarily adjust to $2,000 per month at $100 per day effective Tuesday 9 March 2021.
In order to improve the liquidity of the Exchange our commitment is to:
- Complete development of the global exchange – BTX Global and open the Exchange to international buyers to purchase Qoin from May 2021.
- Continuously update and upgrade the wallet with Apple and Android.
- Expand the BTX Support teams to improve the speed of KYC and bank verifications.
- Establish a BTX advisory office.
- Promote the OTC services to high net-worth individuals, family offices and fund managers.
- Consistent communication and education for the community across all platforms.
The success of BTX will depend on our customers and the Qoin community doing the right thing. We request patience as our exchange is only three months old and ask all our customers to introduce BTX to your acquaintances and associates in order to improve liquidity.
We thank you, our valued customers, for your support and look forward to continuing to service your Qoin dealings in the future.