The contents of this announcement are point-in-time statements. Please note the date of publication.
01 Sep 2023
All community members who wish to wrap their Qoin should first read the following important information prior to commencing wrapping.
BPS Financial Pty Ltd “BPS” strongly recommends you consult with a taxation professional to gain independent advice, relevant to your situation and needs before you make the decision to wrap your Qoin. It is important you understand how this may impact you and or your business. With respect to the wrapping, BPS is not providing any financial, investment or tax advice. You must engage with an independent professional regarding your financial or taxation position.
Important Information regarding Wrapped Qoin
1. What is wrapped Qoin?
Wrapped Qoin is a Qoin on the Qoin blockchain that has effectively been transferred over a digital bridge onto the Ethereum blockchain. This is achieved by locking up your Qoin in a smart contract on the digital bridge and generating a replacement Qoin on the Ethereum blockchain. This replacement Qoin is referred to as wrapped Qoin.
2. What will the code be of the wrapped Qoin on the Ethereum blockchain?
It will be referred to as wQOIN.
3. What will be the ratio of Qoin to wQOIN when it is wrapped?
Qoin will be wrapped to wQOIN on a one Qoin for one wQOIN basis.
4. What is the wrapping beta testing period?
It is a safety, security and development testing period which has been extended to the end of December 2023 for limited wrapping of Qoin to the Ethereum blockchain.
5. How and when do I qualify for the beta testing period?
As voted by the community there were initially 5 key priority testing groups invited to participate. From 1 September 2023 all Qoin owners who complete KYC identification verification can participate, subject to limits during the beta period.
6. Will I have a limit of Qoin I can wrap during the beta testing?
You will be asked how many Qoin you own and how many you want to wrap. Based on this a maximum of 100,000 Qoin per application may apply. This limit is imposed for security purposes.
7. What will the wrapping process be after the beta testing period?
8. Will I need to complete identity verification like KYC to wrap my Qoin?
The regulatory requirements are that you need to complete KYC if you have not yet been KYC verified by BPS or Block Trade Exchange (BTX).
9. Who owns or operates the digital bridge?
BTX owns and operates the digital bridge.
10. Are there any fees involved to wrap my Qoin?
Yes, unfortunately, the Ethereum blockchain charges gas fees for every transaction on that chain. These gas fees are charged in the Ethereum currency known as Ether (ETH) and are quoted frequently throughout the day depending on the congestion on the chain and your urgency. Gas fees are charged per transaction, irrespective of the number of Qoin that you wrap.
11. Will I need a different wallet for the beta testing period?
From 1 September 2023, you only need your Qoin Wallet to transact in wrapped Qoin.
12. How do I purchase the Ether and pay for my gas fees?
During the beta testing period, you will need to acquire your own ETH into your Qoin wallet. You can acquire ETH by receiving it into your Qoin wallet from any other wallet or user, or you can purchase ETH from any registered Australian crypto exchange or crypto onramp service.
13. How do I pay for my gas fees?
You will receive a fixed estimate for the gas fees from BTX Bridge and then transfer the ETH from your Qoin wallet to the BTX Bridge wallet. After the beta period, you may be able to purchase the ETH via your Qoin App and pay your gas fees directly.
14. How does the wrapping process work sequentially?
During the beta testing period, your application allocation will be confirmed, and you will be requested to transfer that amount of Qoin from your Qoin wallet to the BTX Bridge wallet and the corresponding ETH gas fees from your Qoin wallet to the BTX Bridge wallet. Once the Qoin and ETH has been received, your equal number of wQOIN will then be transferred to your Qoin wallet connected to the Ethereum blockchain. You now have your wrapped Qoin in your Qoin wallet on the Ethereum blockchain and ready to transact with the vast global crypto community estimated at +250 million wallet holders, subject to the other wallet holder being willing to receive or send wQOIN.
15. How will this wrapping process work after the beta testing period?
You will not need another wallet unless you prefer to. You will be able to perform all the steps from transferring your Qoin, purchasing the ETH for gas fees and receiving your wQOIN in your Qoin wallet.
16. What can I do with my wQOIN during the beta testing period?
During the initial beta testing period you will have limited capability for your wQOIN while we prepare and negotiate with market makers, public exchanges and launchpads. While this is taking place wQOIN holders may be able to trade privately or peer to peer with wQOIN. This means you may be able to swap or pay wQOIN to any other wallet in the world that is linked to the Ethereum blockchain if that wallet holder is prepared to accept your wQOIN at an agreed value. This also means that the Qoin community that have wQOIN will also be able to transact with each other.
17. Can I also unwrap my wQOIN back to Qoin to enjoy free transactions? What will the unwrap ratio be?
Yes, you will easily be able to unwrap your wQOIN in the reverse process by sending your wQOIN to the BTX Bridge and receiving Qoin into your Qoin wallet on a one wQOIN for one Qoin ratio. Remember you will need to pay a gas fee from the Ethereum side but all transactions on the Qoin blockchain are free.
18. When will wQOIN be added to other blockchains?
The tech team have already started working to connect wQOIN to other blockchains. The first priority after Ethereum will be the popular EVM chains like Polygon, Binance (BNB), and Cronos (crypto.com).
19. Could the wQOIN price in the public exchanges vary from the Qoin value in the wallet?
The wQOIN price in future public exchanges will be determined by market forces like the supply and demand of buyers and sellers. This could be volatile and fluctuate or vary significantly from the Qoin wallet value from time to time.
20. Could wrapping of Qoin have taxation consequences?
We are not certified and cannot give any taxation advice as it is applied differently in each country and for each individual circumstance. However, we strongly recommend that you engage with your accountant or tax agent as wrapping of any cryptocurrency may cause a taxation event, depending on your
To commence your Qoin Wrapping journey, click HERE