The contents of this newsletter are point-in-time statements. Please note the date of publication.

21 December 2022

Dear Colleague and fellow Qoin Holder,

We’d like to take this opportunity to thank you for your support and loyalty to the Qoin community over the past 12 months. Although the crypto industry had a horrible year, the Qoin Team has been working very hard to strengthen the building blocks of the Qoin Project to be ready for what we believe will end in a positive 2023. In this letter, we share some of the data and highlights of 2022, an industry update, as well as our focus for 2023.

The year started off with the first community vote results that set the scene towards democratising and further decentralising the Qoin project.

The 3rd of February was our first community zoom chat where the project team gives an update of all things Qoin and where anyone can ask any question. 

This was followed in March with a vote for our 5 community group leaders and their deputies. Since then these group leaders have done a lot of work and implemented their 3 key plans to benefit the community. A newsletter update of each group’s work and progress is regularly published in the mobile app HELP button under the tab ‘community groups and leaders’.

In April, Qoin was a headline sponsor of the APAC Blockchain conference in Sydney where we delivered a keynote and heard from Senator Bragg and other global crypto industry leaders.

The tech team delivered improvements to the QShop and Search functions and an important upgrade to meet new security standards implemented by Apple and Android.

Also in April, the long-awaited wallet was made available in Singapore and South Africa.

In May the crypto industry was shaken and crashed by about 70% with the collapse of the Terra Luna project which also brought down several large projects like Voyager and Three Arrows Capital. Hundreds of millions of dollars in crypto assets were also hacked from wrapping bridges in the first half of 2022.  

In June our first 50 merchants successfully wrapped some of their Qoin as part of the beta wrapping process. The community has now wrapped a total of 2.3 million Qoin onto the Ethereum blockchain. In the new year, the Qoin Association is expected to make further announcements on the opportunities for Wrapped Qoin holders on the Ethereum blockchain.

In July Justice Derrington ordered the Class Action applicants to pay $750,000 cash to the court as security for our legal costs if they wish to continue the proceedings. We expect an update in this regard early in the new year. In the meantime, during November, there was a change of lawyers from Salerno Law whose associated cryptocurrency exchange, Trigon X, has filed for administration. Salerno Law managing partner Matteo Salerno was also the founder and director of Trigon X.

During July the first merchant networking took place in Sydney, Brisbane, and the Gold Coast and since then New Zealand has hosted several events. 

In August the third edition of the QMag was published and available in your HELP button. QDN also launched their merchant feature of the week where one merchant can promote their best Qoin deal to hundreds of QDN viewers.   

September saw the launch of the GrabbaCoupon website where merchants can list Qoin coupon deals in combination with cash to attract more customers.

On 6 October Qoin sponsored the popular Small Business Expo in Brisbane where over a hundred Qoin merchants booked a stand to display their products. We are exploring hosting a national online small business expo for later in 2023 where all Qoin merchants and consumers can participate.  

In November the Qhub was launched as your Merchant Virtual Office. Dozens of trading, educational and informative videos have been produced for business owners and their staff. The Qhub gives free access to this range of resources and tools for merchants to learn and develop their Qoin trading skills, support each other, grow the community, and build confidence. We are proud of the extensive off-chain resources and training videos created by our Marketing and Training teams over the past 2 years.  Many of these valuable tools are also available in your HELP button to the whole Qoin community at no cost.

Unfortunately, November also saw the collapse of FTX – the world’s second-largest crypto exchange. This bankruptcy contagion extended to many other exchanges and projects who have suspended withdrawals of customer funds. Billions of dollars of crypto have been withdrawn from large global exchanges over the past few weeks. Auditors have resigned and distanced themselves from the Proof of Reserves statements made by several large crypto exchanges. Crypto prices fell a further 20%. At least 4 Australian crypto exchanges/ projects have halted withdrawals or placed into administration. Expert commentators believe there is more bad news to come before it gets better.

We remind the community that neither BTX nor BPS or any entity related to the Qoin Project hold any user funds. It is core to the Qoin project that each user holds and controls their own Qoin in their own self custodial wallet. Our Qoin core philosophy remains, you have full control of your funds and pay no fees.

For the 12 months to 30 November 2022 the community wallet holders transacted 81.74 million Qoin on the blockchain across 132,407 transactions at an average transaction size of 618 Qoin. The validation team received 1,141 merchant complaint reports from the community for the year. These complaints range from merchants not accepting Qoin to merchants providing inferior services. After investigations and education by the validation team, a total number of 543 merchants representing 48% of the complaints were removed from the merchant directory to consumers.  

 As we navigate these turbulent crypto times and move through December, the Qoin tech and trading teams are preparing for a big 2023 where the focus will be to maximise the usage and utility of our Qoin digital currency. Once we have successfully concluded our regulatory path forward, combined with the utility tech upgrades, the Qoin project is anticipated to be in a good position to scale globally from the third quarter of 2023. Based on previous trends and all else being equal we believe the crypto markets should start a positive recovery at the same time.

We also want to acknowledge and thank all our Qoin donors who donated generously to our official community foundation – the One Light Charity Foundation. Your businesses are recognised for their generosity on the onelightcharity.com website. Some of the good work One Light completed this year were the emergency relief packages for the NSW Lismore floods, 250 pairs of shoes delivered to disadvantaged kids at primary schools in Queensland, Christmas backpack campaign for the homeless, hundreds of gifts donated for Christmas hampers in association with the Salvation Army, Newlife Care, and Spirited Woman Christmas Angels. 

Wishing you all and your families a very Merry Christmas and a bright and prosperous 2023.  We look forward to growing the Qoin community next year.

Our offices will close from Thursday, 22nd December, and will reopen on Monday, 9th January 2023. There will be limited support during this time. Remember, the help button in your Qoin wallet is a fantastic self-service tool available at your fingertips with access to valuable information all in the one place, should you require assistance over the festive season.

Merry Christmas everyone. 

Your Qoin Team