7 April 2022
The Qoin Association requests all community members who wish to wrap their Qoin, to read the following important information prior to commencing wrapping.
BPS Financial Pty Ltd 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 as wrapping may create a tax event. With respect to the wrapping, BPS Financial Pty Ltd is not providing any financial or tax advice. You must engage with an independent taxation professional regarding your 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 token in a smart contract on the digital bridge and generating a replacement Qoin token on the Ethereum blockchain.
2. What will the name or 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 six month security testing period commencing in March 2022 and ending in August 2022 for selective and 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 are 5 key priority testing groups in the following order commencing in March 2022:
a. Merchants supplying the community – March 2022
b. Qoin Owners who purchased Qoin packages, memberships or blocks – April 2022
c. Service providers – May 2022
d. Agents, ambassadors, advocates, and community leaders – June 2022
e. All other Qoin Owners – July 2022
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 we will endeavour to meet up to 80% of the requests up to a maximum of 250,000 Qoin per application 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 a Qoin related entity or Block Trade Exchange (BTX). As KYC is mandatory from 1 April 2022 the majority of Qoin Owners would have already passed KYC.
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 – code ETH. The gas fees are quoted frequently throughout the day depending on the congestion on the chain and your urgency. Currently non urgent gas fees range from approximately $5 to $50 per transaction, irrespective of the number of Qoin.
11. Will I need a different wallet for the beta testing period?
Yes, during the beta testing period you will need to download an Ethereum compatible wallet like Metamask from the Google or Apple stores and connect it to the wQoin smart contract on the Ethereum blockchain. After the beta period you will be able to complete the whole wrapping process in your Qoin wallet directly.
12. How do I purchase the Ether and pay for my gas fees?
During the beta testing period you will need to open an account with a registered Australian crypto exchange or onramp and purchase sufficient ETH into your new wallet like Metamask. You will receive a fixed estimate for the gas fees from BTX Bridge and then transfer the ETH from your Metamask wallet to the BTX Bridge wallet. After the beta period you will be able to purchase the ETH from your Qoin wallet and pay your gas fees directly.
13. 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 Metamask 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 Metamask wallet on the Ethereum blockchain. You now have your wrapped Qoin in your Metamask wallet on the Ethereum blockchain and ready to explore and discover the vast crypto world community of over 250 million wallet holders. We aim to have wQoin listed on a public exchange prior to 30 November 2022.
14. 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 and paying the ETH gas fees and receiving your wQoin on the Ethereum blockchain in your Qoin wallet.
15. 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 to list wQoin and also list wQoin for participation in various DeFi projects like staking and liquidity pools. These negotiations are planned to run concurrently with the 6 month beta testing period. We aim to have wQoin listed on a public exchange prior to 30 November 2022. While this is taking place wQoin holders may be able to privately or peer to peer trade with wQoin. This means you may be able to swap or pay wQoin to any other Metamask or similar wallet that is linked to the Ethereum blockchain if the wallet holder is prepared to accept wQoin as a payment at an agreed value. This also means that the Qoin community that have wQoin will also be able to pay each other with wQoin, as long as both have a Metamask or similar wallet connected to the Ethereum blockchain.
16. 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.
17. 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 Binance (BNB), Polygon and Cronos (crypto.com) later this year and then other popular chains like Bitcoin, Solana, Cardano, Polkadot, Algorand etc in 2023.
18. Could the wQoin price in the public exchanges vary from the Qoin value in the wallet?
The wQoin price in 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.
19. 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 can cause a taxation event, depending on your
20. How will I get help?
We are preparing easy to use guides in the Help button and of course Qoin support will be there to hold your hand all the way until you are wrapped.