Dear PointPay family,

PointPay CEO Vladimir Kardapoltsev participated in a traditional AMA session on January 25, 2024. He shared the latest news about PointPay, made several announcements, and talked about upcoming events such as Token Swap and Token Booster!

Below is a summary of the AMA held on the 25th of January, 2024.

AMA Transcript

Vladimir (CEO): Hello, PointPay family. Welcome back to our traditional AMA session. I'm glad to meet you all again. This is the last Thursday of the month, and this is when we do those AMA sessions. I hope you had a wonderful Christmas and the New Year and any other thing that you celebrate during that time. And here with me, as always, is Diana.

Diana (Host):  Hello, everyone. Let's get started and listen to the latest news and announcements from Vlad.

Vladimir (CEO): At PointPay, we've been incredibly diligent this month, working consistently without slacking off. On January 2nd, we were back to work after having January 1st off, achieving quite a lot. I'll recap our accomplishments, including the long-awaited token swap. I'll introduce a new feature, the Token Booster, discuss our competition achievements, and touch on some news. Afterward, Diana will ask questions. Let's start with the highly anticipated token swap.

I announced months ago that we'd conduct a token swap this year, likely in Q1. We're deeply preparing for this event, swapping the old version (version two) of the PXP token for the upcoming version three. This will bring changes to our platform and operations.

Since our start in 2018, the industry, world, and our company have evolved. Initially releasing an ERC-20 token, like many, even BNB, we adapted to market changes. Now, with the world going multichain, we've decided to follow suit.

Why? Firstly, we aim to expand the token's presence beyond the Ethereum network, possibly across more than two blockchains—perhaps five. The goal is increased accessibility, lower fees for global adoption, and the ability to trade PXP more freely on any network or wallet. Multistack compatibility is crucial for the token's new era and the project's renewal. We also seek to generate buzz around the token swap.

The token supply will be reduced from a billion to 100 million in the upcoming token swap. Due to significant token burns, the exchange rate for old PXP tokens to new PXP tokens is set at 8.28 to 1. This reduction aims to increase the perceived value of individual PXP tokens, attracting new users to the platform.

The token swap serves as part of the token evolution strategy, intending to boost the token's value and expand its utility within the PointPay ecosystem. Already integrated into various parts of the ecosystem, such as the bank and exchange, PXP will further be incorporated across the platform to enhance its overall value.

In technical terms, the token swap will occur on the PointPay platform. Users with PXP tokens on external platforms need to transfer them to PointPay for the exchange. The process involves logging in, visiting a dedicated page, and instantaneously swapping old tokens, which will cease to exist. The fixed exchange rate is 8.28 old PXP tokens to one new PXP token, reflecting initial exchange rates and burnt amounts.

After the swap, PointPay plans to fully integrate the PXP token across the platform, including a feature called Token Booster. This comprehensive integration aims to maximize the utility of the PXP token within the platform.

After the token swap, PointPay will initiate marketing activities, including listings on reputable exchanges. Talks with Whitebit and beTrue are ongoing, with negotiations for the relisting of the new version. Additional listings on advanced-stage exchanges are in progress. PointPay is also developing partner and ambassador programs. The PXP token is currently listed on Whitebit and beTrue. Take note, as the expected rise in the new PXP token's price makes it an opportune time to buy.

Regarding the token swap, it will occur on PointPay's platform, and users can swap old tokens through a designated page by agreeing to the terms. Stakeholders with existing stakings need not worry, as a special form will facilitate the swap process.

The token swap aims to capture 90-95% of PXP token holders within a specific timeframe. While an exact timeline will be announced, those who miss it can still swap tokens on a case-by-case basis via support. 

An upcoming document will outline key points about the new token, expected to be published in February. A separate page on the platform is in the works, aligning with the planned launch of the token booster platform.

We've tried various products on PointPay, but the Token Booster platform has genuine commercial viability. The PXP token will be directly integrated into it, adding more utility for PXP holders.

The Token Booster will facilitate collaboration on marketing with different projects, aiming to expand audiences mutually. PXP will be used for voting and interaction with projects on the platform. We're extending utility beyond the exchange to all our products, emphasizing the Token Booster as a dedicated product for PXP.

The platform operates similarly to Kickstarter, where projects register, verify, and create a campaign. Projects describe goals, achievements, and future plans. It differs from a launchpad, offering appealing rewards and optional incentives like airdrops. Campaigns run for a specific period, during which PXP voting benefits both holders and new projects. More details will follow, and we'll explore this further in upcoming discussions.

We're actively developing the Token Booster platform, exploring search and background mechanisms. In January, we engaged our Telegram community for PXP development ideas, and the integration of PointPay with DeFi platforms emerged as the top idea. We appreciate the valuable input from our community.

Two trading competitions took place in January, the New Year's and the ongoing Masters competition, both offering a total prize pool of $50,000. The Masters competition runs until February 2nd, focusing on USDC pairs. Upcoming events include a Chinese New Year trading competition starting on February 10th with a wooden dragon symbol, along with a concurrent Valentine's Day competition. Trading competitions have proven popular, attracting new users to our platform.

In other news, the SEC approved the launch of ETFs, marking a significant step in Bitcoin's financial development. This move integrates traditional finance further into the cryptocurrency world, drawing attention from traditional investors. This signals a shift towards broader acceptance and marks a step closer to a financial revolution. This is all very interesting, but you could probably read about it in the news. 

I think that is all I wanted to discuss for now. So let's move on to the questions, shall we?

Diana (Host): As a previous PXP holder, I was very disappointed with the performance of the token. The fact that you can't even trade it on the PointPay platform is shocking, and the holders should have been rewarded by the trading fees generated on the platform, which are quite substantial. I feel that holders were not being treated respectfully and have therefore decided to sell out. Would like to hear your comments on this. 

Vladimir (CEO): That's a very comprehensive question, albeit without specific details, exactly what the user wants to know. But nonetheless, I understand that the overall sentiment is quite negative sometimes, but that's crypto investment for you. So let's try to break it down into several distinct topics in order to kind of provide the commentary separately. I will try to remember everything that you mentioned.

Firstly, I acknowledge the disappointment you've expressed regarding the performance of PXP. Indeed, we cannot boast outstanding results and substantial profits at this point. However, it's essential to recognize the stability the token has maintained since our platform became fully functional in the summer of this year.

The upcoming token swap, along with planned marketing activities and listings on reputable exchanges, is expected to inject new life into the token. It's crucial to understand that PointPay is a long-term investment, and we believe that the value of PXP will rise with increased utility within our platform, especially as we continue to expand its functionalities.

Regarding the challenges faced in 2022 due to the overall downturn in the cryptocurrency market, PointPay experienced a time of revival and recovery in 2023. Throughout this period, we focused on revamping the platform, conducting regular burns, hosting AMA sessions, and providing updates to assure our community that the project was thriving. Despite the market challenges, we managed to maintain operations, securing funds for future development. With the platform now fully ready and generating income, we are poised to reach new heights.

Addressing your second point about trading PXP on the PointPay platform, I want to clarify that after the token swap and subsequent tier one listing, we plan to introduce PXP on our platform. This strategic decision aligns with our goal of securing a tier one exchange listing. Currently, PXP is actively traded on other platforms, maintaining an active market. Users can easily transfer PXP away from our platform for trading on platforms such as Uniswap, Whitebit, or Bitrue.

It's important to note that we have never promised earning from trading fees, as this would classify our token as a security, which is illegal. PXP is designed to be used within the PointPay platform, offering advantages and discounts. We appreciate the belief of our community in the project's future and assure you that PointPay remains vibrant and strong.

We encourage our users to view PointPay as a long-term commitment, given the ongoing efforts to build a robust and successful product in a volatile market.

Diana (Host):  Pointpay users will be forced to transfer the token to the platform, losing part of their savings to fees, and then they have to withdraw. Since trading PXP on point pay is not possible, is it possible to reduce or completely eliminate fees for users conducting transactions with PXP? 

Vladimir (CEO):  It's not a confirmed fact yet. Achieving a tier one listing isn't as straightforward as a company merely stating they'll obtain it. The process involves extensive due diligence and meeting specific criteria, especially with reputable exchanges like Maxi, Bitrue, Okex, and others. We've held advanced talks with several exchanges and are at the advanced stages of negotiation with three. 

However, securing such listings can be unpredictable. Even with agreements in principle, as happened in the past, arrangements can fall through abruptly. While we've had positive discussions and engaged partners, the final tier one listing depends on these companies. We're optimistic about our progress, having met with some partners, but finalization is contingent upon their decisions.

Diana (Host): If I don't do the token swap, will I lose all of my PXP tokens?

Vladimir (CEO): Transaction fees within the cryptocurrency space primarily serve to compensate miners and platform administrators, enabling them to generate revenue. This includes fees such as PXP fees and gas fees, incurred when transferring PXP or any other currency to external wallets. As a financial organization, PointPay operates with the objective of financial sustainability rather than charitable endeavors. Revenue is generated through commissions on trades and withdrawals from the platform.

When holding PXP tokens within the PointPay ecosystem, users are exempt from certain fees, such as those associated with swaps, which are executed instantaneously and without charge. However, withdrawing funds from PointPay may entail specific fees. Negotiations with external exchanges are ongoing, though the outcome remains uncertain. If PXP tokens are maintained on external exchanges, withdrawal fees may apply. Notably, PointPay imposes no deposit fees, ensuring a one-time payment of fees for users.

It is crucial to acknowledge that fees are inherent to the cryptocurrency space, and each transaction incurs associated costs. While gas fees are applicable when withdrawing PXP to a wallet, withdrawing to an external exchange may involve additional charges. This structure is intrinsic to the cryptocurrency realm, where fees play a fundamental role in sustaining operations and facilitating financial viability.

Diana (Host): When will you be able to give us tokenomics of the new PXP token? 

Vladimir (CEO): The tokenomics will largely remain the same, and we're approaching the conclusion of its development stage. The release is expected within the next few weeks. 

While specific details will be announced later, there won't be any drastic changes from the previous structure. The use cases remain consistent due to the existing platform. The tokenomics will closely resemble the previous iteration, with certain changes outlined in a separate document and dedicated page. This documentation will explain how we plan to use the new tokens within the platform, both presently and in the future. 

In summary, while there will be some changes, particularly in future applications, the core tokenomics will see no significant alterations.

Diana (Host): Where do you see PointPay in the next two years? 

Vladimir (CEO): The next two years present a significant timeframe, especially in the crypto market. I anticipate substantial evolution for PXP during this period.

I envision PXP being listed on a tier one exchange and ultimately becoming a tier one exchange itself, leveraging the advancements we are currently developing. The goal is to position PointPay as a market leader. With the integration of PXP within our platform and its effective utilization, I expect an increase in use cases and, consequently, a rise in its price, akin to the trajectory of BNB.

Our focus extends to enhancing the functionality and accessibility of our platform, aspiring to create the best platform globally. We aim to substantially increase the number of trading pairs, surpassing the 100 cryptos and 150 trading pairs achieved by the end of last year.

Potential additions include the introduction of margin trading and futures trading if market demand dictates. Exploring card solutions to venture into the banking sector is under consideration, along with obtaining more licenses, increasing exposure, attending conferences, and solidifying our position as the leading crypto trading platform globally.

In terms of innovation, we are considering the integration of user centers, DeFi, and NFTs. Additionally, there will be a focus on intensified marketing efforts, increased exposure through bloggers, and continuous enhancement of functionality. The ultimate goal is to establish PointPay as a world-renowned platform, with growth being the key theme.

Reflecting on the past three years in the company, significant achievements have been realized, including platform stabilization, financial gains, and increased user engagement. Building on this foundation, the vision is to further ramp up growth, attracting new users, increasing trading volumes, and ultimately surpassing other exchanges, with the aspiration to surpass even industry giants like Binance. Despite challenges in the market, the ambition is to secure a prominent position, with the ultimate goal of becoming the number one crypto platform globally.

Diana (Host): When do you expect that we will have fiat payers and be able to directly on ramp and off ramp large amounts of money via wire transfer? 

Vladimir (CEO): This question, I think, directly leads into the discussion about the global acceptance of cryptocurrencies and their regulation and so on.

There are several obstacles to the direct bank transfers into the cryptocurrency at the moment. So banks don't fully support the initiatives, rules governing such transfers are either nonexistent or are not adequately regulated, and the regulation of such transfers significantly differs from one country to another.

There is a problem with anti-money laundering, KYC, etc., people don't like, it if you send a large amount of money, even, not even a large amount of money, if you send, like, more than €5000 from one bank to another, they will ask you, what are you doing? Why are you doing that?

That's probably why unloading large amounts of crypto and withdrawing it into a bank account is probably not such a good idea in terms of antimoney laundering because quite a lot of people use crypto to buy illicit goods. Still. That's why we have to check every single person who joins our platform. We weed through all of those people, and we have certain reporting responsibilities.

For example, if you deposit or withdraw or make any kind of movement of more than €10,000 or dollars on our platform, we have to report it to the regulators. We have to report it.

Cryptocurrencies are now being integrated into our everyday life. I know that quite a lot of banks are now developing their crypto capabilities, such as Visa and Mastercard. You can trade crypto on quite a lot of very popular standard platforms. As I know, Revolut is now planning to do its own crypto exchange.

There are quite a lot of things that are going on in the market, joining in the fiat transactions, etc. But to answer your question, it would be very hard to offload quite a lot of cash or crypto into PointPay because of the reporting capabilities. But if you have all of the documents, you can still do it now through the regular payment systems. I think you would have to pay a bit of money to do that. But I think as the industry develops, we will be able to provide such capability.

Diana (Host): What stage are you at with the tier-one listings? Will tier-one exchanges be against listing PXP as it's competition for them to list other exchanges? 

Vladimir (CEO): Regarding tier-one listings, we are currently in advanced discussions with top reputable exchanges. While nothing has been formally signed, we have reached agreements in principle with several of them. Many are expressing a strong interest in listing the new version of the PXP token.

As for concerns about being viewed as competition by tier-one exchanges, the sentiment has evolved. Presently, the primary focus for exchanges is on listing fees and the tradability of the asset. They are less concerned about PXP being perceived as a competition and more focused on reputation, legal aspects, company control, and our planned marketing activities. The reputation of the exchanges, along with the associated listing fees and marketing strategies, are key considerations in the negotiation process.

Despite these considerations, we are actively engaged in discussions with multiple tier-one exchanges and anticipate conducting a token listing on one of them following the token swap. This aligns with our ongoing efforts to enhance the visibility and tradability of PXP.

Diana (Host): I would like to know if it still plans to open a forex platform as announced in the past roadmap, where we even won an award for the best forex app.

Vladimir (CEO): Good memory! As for future plans for a forex platform, while we received an award related to trading platforms in the past, it wasn't specifically for forex. PointPay is not currently planning to build a forex platform. Our primary focus remains on cryptocurrencies.

However, in the future, we might explore options such as crypto stocks, a concept that gained popularity in the past. While legal concerns surrounding regulations hindered the development of such platforms, we are open to the possibility of introducing options trading and crypto shares, similar to platforms like eToro. Although not a current development priority, the future roadmap for PointPay may include innovative features as the crypto landscape evolves. The potential amalgamation of crypto platforms into a forex platform is a consideration for the future, but it is not an immediate priority in our development goals.

Diana (Host): And in terms of platform development, does PointPay plan to obtain a banking license in the near future? It would be convenient to use the service as both a crypto platform and a traditional bank. 

Vladimir (CEO):  Obtaining a banking license is not currently a priority for PointPay in terms of platform development. When we initiated our ICO and explored various possibilities, including reaching out to jurisdictions, we considered the option of obtaining a banking license. However, the process proved to be exceptionally challenging, and more importantly, it's not a necessity for the functions we aim to perform.

In the current landscape, securing a banking license is not our primary focus. The market is saturated with entities like Wise and Revolut, which have amassed significant investments. While it's a potential avenue for exploration in the future, it is not among our top priorities. Our platform already integrates multiple payment providers for depositing and converting crypto to fiat, currently totaling three. Additionally, we offer staking on our platform, providing a mechanism similar to an interest rate.

The banking sector is highly competitive, and the associated costs related to regulation, marketing, legal considerations, and consultancy make it less financially viable at this time. While obtaining a banking license is part of our long-term plans, it may be approached as a separate side project or a distinct service in the future. The introduction of cards, a popular feature in the past, is also under consideration, dependent on market demand. If pursued, we might initially focus on the European Union, encompassing its 27-28 member countries as a cohesive block. These considerations reflect our current stance on this matter.

Vladimir (CEO): Do we have any more questions? 

Diana (Host): Well, I guess that was the last question. Thank you very much for all of your answers.

Vladimir (CEO): I think we just have 1 minute left. Thank you very much, Diana, for helping me out with the questions, and for gathering them. 

Concluding the broadcast, I'd like to summarize the upcoming token swap. We're upgrading version two tokens to version three on our platform. PXP tokens will be accessible on multiple blockchains (details to come). Notable changes include a supply adjustment, with an exchange rate of 8.28 old PXP tokens to one new PXP token. Listings will expand to external platforms and PointPay, enhancing PXP's utility. That is how it will be.

On Saturday, it's going to be my birthday, so say happy birthday to me. I'm approaching the three big 30 for now. I'm probably going to be busy, but I would appreciate it if you drop me a message. Thank you. 

Despite being slightly over time, we covered crucial platform matters. Have a great weekend and day. Hope I clarified things. See you in about three weeks, given February's brevity.

Thank you very much and have a wonderful, wonderful day. Bye.

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