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

Welcome to your latest newsletter where we update the community on all things Qoin.

Industry overview   

Token 2049, one of the largest crypto conferences in the world, was held in Singapore last week attracting 20,000 attendees with 400 exhibitors and 600 side events. Per Apollo Crypto, who attended the conference, there remains significant interest in building crypto businesses and protocols. There was much focus on crypto infrastructure such as deploying new Layer 1’s and Layer 2’s that provide more blockspace, however the development of tangible uses cases remain slow.

Apollo further stated there is optimism about the market outlook over the next twelve months, driven by factors such as:

• Interest rate cut in the US by 50 basis points
• The outcome of the US election
• The upcoming FTX bankruptcy payout
• Inflows into Bitcoin and Ethereum ETFs

The AFR Crypto and Digital Assets Summit was held in Sydney on 23 September. The Australian Financial Review (AFR), Australia’s leading financial paper, reported that delegates to this week’s Summit pleaded for clarity about how digital assets are defined under corporate laws.

Crypto entrepreneurs say aggressive enforcement by the corporate regulator and the Albanese government’s failure to make laws governing digital assets are forcing product development to be done in secret and pushing new businesses offshore to more supportive jurisdictions.

The government’s inaction and the regulator’s anti-innovation stance were hindering the country’s ability to keep pace with financial innovation that is poised to disrupt capital markets and redefine money in the digital economy, company founders told The Australian Financial Review

The AFR further reported that ASIC commissioner Alan Kirkland explained to the audience that ASIC recognises that legal actions against crypto operators create a period of uncertainty, particularly for the business involved, but ASIC was ultimately motivated by a desire to help clarify the boundaries of the law.

Markets

A strong run after the USA interest rate cut last week again demonstrated the crypto markets volatility. Per CoinMarketCap the cryptocurrency market size has increased from US$1.98 Trillion in early August to US$2.24 Trillion today – an increase of 13%.

Community Transactions

For the month of August 2024, the community transacted 676,065 Qoin across 1,866 transactions at a wallet value of approximately AU$6.658 million of Qoin. The average transaction size for the month was Q362. Since January 2020 the Qoin community made 566k transactions at a combined wallet value exceeding AU$2.5 Billion. This data excludes incentives and treasury related transactions.

Technology and Governance

As foreshadowed in the original whitepaper the Qoin Association is committed to more decentralisation over time. This is important for long term sustainability across a broad spectrum of stakeholders and users. A further announcement in this regard is expected before the end of this year, including the transition to a independent global foundation.

The tech team has made further progress to test:

1. a public Layer 2 scaling solution for the important next phase of further decentralisation of the blockchain, and
2. a self-custodial web-wallet provided by a a global leader in wallet software.

Outlook

The team at Qoin is optimistic about the next decentralisation phase in the evolution of the Qoin project. This is because:

1. it secures the project long term,
2. gives access to the mainstream crypto audience globally,

• should attract more merchants and consumers for its core use case.

Subject to approvals of providers and testing results we hope that this next phase can commence in the next quarter and develop strong momentum during 2025.

Other Updates

The class action parties remain in mediation to allow for ongoing discussions and communications between the parties. Due to the confidential nature of the mediation no further information can be disclosed at this stage. The parties can provide a further update as soon as the mediation has either been concluded or alternatively terminated.

In the ASIC matter against BPS Financial Pty Ltd (BPS) the appeal by ASIC is now expected to be heard in March 2025.

We will update the community on any material progress in both the mediation and appeal matters above as soon as practical, permitted and authorised.

Closing

We thank the community for your patience over the past 3 years whilst we had to defend your project in the legal proceedings. During this time the community transacted more than AU$1.3 Billion of Qoin at the wallet value, contributing to your economic activity.

The Qoin Team