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Behind the digital currency you know as Qoin there are a number of specialised business units, and although Qoin itself is not a legal entity it has become more of a generic brand name.

The organisation which you know as Qoin commenced operating in October 2019 as the Qoin Program which consists of:

a) the Qoin token (“Qoin Token”) that is minted and issued by the Qoin Reserve;
b) the Qoin blockchain (“Qoin Blockchain”);
c) a wallet facility that enables a user to view the Qoin balance available to the user known as the “Qoin Wallet”;
d) a related payment facility enabling a user to purchase goods and services from another user using Qoin on the Qoin Blockchain, referred to as the “Payment Facility” which:

  1. is issued by BPS Financial Limited under an Authorised Representative Agreement with Billzy Pty Ltd  ACN 602 796 298 under AFSL Number 494176, for the purposes of the Corporations Act 2001; and
  2. in respect of which BPS is authorised to provide general financial product advice as Authorised Representative No. 001279598 of the AFSL held by Billzy Pty Ltd; and

Qoin Program statistics are:
a) Qoin commenced in October 2019 and the Qoin Blockchain genesis node was activated on 26 January 2020.
b) The total number of Qoins in circulation at 30 June 2021 were three hundred and ninety- four million rounded.

Account balances and transactions are recorded on the Qoin Blockchain, not in any separate ledger.  The Qoin Wallet is merely a convenient way for a user to ascertain the current state of the Qoin Blockchain as it pertains their holdings.

As you are no doubt aware a digital currency is not necessarily a regulated financial product.  Qoin itself is not a regulated financial product.  It is not:
a) A facility through which a person makes a financial investment;
b) A facility through which a person manages financial risk;
c) A facility through which a person makes non-cash payments.

The Qoin Program enables users to purchase goods and services from another, using the Wallet with the Qoin Token.

There are currently over 35,000 merchants between Australia and New Zealand.  Most digital currencies and commodities (which ASIC considers most digital currencies to be akin to) experience price fluctuations.
Qoin is redeemable for goods and services with participating merchants who have agreed to the Terms of Use and will accept Qoin as a means of payment.  BPS is aware that business types have different margins depending on their operating costs and anticipates that on average up to 25% of a business’s turnover may be used in Qoin.

BPS has a staged process in accepting a Qoin merchant which requires each business owner to accept and abide by the Qoin Merchant Terms of Use.  These stages are:
a) The user is required to register their business as a merchant.
b) The business is required to have a valid ABN and provide its annual turnover.
c) The business owner is to upload a listing for their business which includes goods/services to be sold and payment or part-payment accepted in Qoin.

On successful validation, the business listing is published in the Qoin directory.

About Pyramid Schemes
A pyramid scheme is:
(a) a scheme in which new participants must pay in order to participate in a scheme;
(b) new participants are induced to join the scheme by the prospect of receiving payments for recruiting further new participants; and
(c) pyramid schemes rely on profit made from the recruitment programs.

Merchants who wish to join the Qoin Program are not charged any fees to join and are under no obligation to recruit other merchants or consumers.  Accordingly, the Qoin Program does not fit the definition of a Pyramid Scheme.

About Ponzi Schemes
A Ponzi scheme is a scheme that promises interest or dividends on investments that the issuer has no intention of providing.
The Qoin Program does not promise interest or dividends.

As all commodities and digital currency fluctuates in value does this make all of them a Ponzi scheme? Surely not.

Qoin has always stated the value of Qoin will fluctuate in accordance with the size of the Qoin ecosystem and the value is displayed on the website and the Qoin App.