Transcript of AMA with CEO of PointPay – Vladimir Kardapoltsev, 31 August 2023

Dear PointPay family,

PointPay CEO Vladimir Kardapoltsev participated in a traditional AMA session on August 31, 2023. He shared the latest news about PointPay, made several announcements, as well as answered your questions!

Below is a summary of the AMA held on the 31th of August, 2023.

AMA Transcript

Vladimir (CEO): Hello, PointPay family! Welcome to our traditional end-of-the-month AMA session. As summer comes to a close, we've had an incredible three months at PointPay, with exciting news, platform updates, and more.

Joining me today is Diana, who has reviewed your questions both here on YouTube and on Telegram.

Remember, a couple of weeks before the AMA, we provide a form for you to submit questions. Your feedback is invaluable, so please use that form. Diana will collect and present your questions during our last Thursday of the month AMA session. Diana, please.

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

Thank you, Diana. Let's dive into the exciting news from this month. We achieved a remarkable milestone with our CoinGecko rating. At the beginning of the month, we comfortably held the 50th position, but thanks to increased marketing efforts and trading competitions on our platform, we soared to 22nd place on CoinGecko, even briefly reaching 19th. This places us solidly in the tier two exchange category, just 18 places away from the top. It's worth noting that earlier this year, we were in the hundreds, so this progress is remarkable, especially when compared to larger exchanges like Bittrex and others that faced challenges.

We also had two cryptocurrency listings this month: RNDR and Worldcoin. The RNDR listing, which I mentioned in the previous AMA, is now actively trading, and we held a successful trading competition that drew significant participation from our community, further contributing to our tier two listing.

Additionally, we secured a WorldCoin listing, which saw price grow by 10% this month, a remarkable achievement. We're actively exploring more coin listings for September and October, aligning with current market trends. The listing of WorldCoin was driven by its global popularity, with thousands of trades taking place on our platform.

At 24th August, we held a mini-AMA session/interview with the BR group. We discussed cryptocurrency regulations worldwide, covering recent developments in the US, Europe, Asia, and other regions. While regulatory discussions may not be everyone's cup of tea, it's a topic I find exciting due to my daily involvement in regulatory matters. You can find a recording at BR Group channel, link was in the announce!

On the platform front, we introduced a new staking feature for the ATOM token this month, expanding beyond PXP staking. ATOM staking has gained significant popularity globally, even leading to a waitlist on Binance. We're constantly evaluating market trends and may introduce more staking options in the future to engage our users and enhance platform usability.

In terms of developments, we're working on advanced trading techniques and integrating marketing strategies within our platform. Our focus is on improving the onboarding experience, where users complete tasks for rewards, boosting retention.

Regarding our iOS app, it was temporarily blocked in Brazil but is now accessible again. Our legal team is actively working on other jurisdictions as well.

Despite August typically being a slower month, we've achieved significant milestones in platform development and user experience enhancements. We're committed to retaining and engaging users as we prepare for upcoming marketing campaigns.

Vladimir (CEO): That wraps up our update for now. Let's move on to your questions. Diana, please go ahead and ask.

Diana (Host): Okay, so here we are, is ATOM staking a permanent feature on PointPay now? Or is it a temporary solution?

Vladimir (CEO): Certainly, let's talk about ATOM staking on PointPay. ATOM has been trading on PointPay for about half a year and has gained significant popularity. It's the native token for the Cosmos network, primarily focused on data transfer and positioning itself as an alternative to Bitcoin and Ethereum. There are promising developments and various applications and tokens being built on the Cosmos network, indicating potential use cases.

However, regarding ATOM staking on PointPay, it's important to note that it is currently a temporary feature. We're in the process of testing and experimenting with new tokens within our ecosystem, and ATOM was the first non-PXP token we introduced for staking. It has proven to be quite popular, with many users transferring their ATOM tokens to PointPay and staking them.

While ATOM staking is currently available, we may introduce more tokens to our staking program in the future. Our analysts are diligently researching tokens that align with our investment criteria and business objectives. It's crucial to understand that staking isn't a magic money tree; the economics have to work for both the platform and the users.

For now, we offer PXP staking at 7% for the highest amounts and durations and ATOM staking at 8%, which is also an attractive option. However, the long-term sustainability of ATOM staking will depend on ongoing analysis and market dynamics. We're committed to monitoring it daily, and if it no longer proves viable, we'll explore other options and may introduce multiple tokens to our staking program.

I hope this answers your question.

Diana (Host): What is your strategy for promoting PointPay in the global cryptocurrency market and competing with other platforms?

Vladimir (CEO): Firstly, we already have a substantial user base of nearly 300,000 users, with about a third of them actively engaging on our platform every day. Over 100,000 users log in and conduct trades on a monthly basis. This is a significant achievement, especially considering that we haven't started any extensive marketing efforts yet.

To elaborate on our global marketing strategy, it's crucial to understand that as you grow larger, attracting new users becomes more challenging. We are currently at a stage where we can attract smaller crypto enthusiasts, provide them with incentives, discounts, and ensure a seamless user experience, including withdrawals (which we're still improving).

Our marketing efforts initially target crypto enthusiasts, including those who actively trade and appreciate benefits like competitive commissions, staking rewards, and token perks. These users are considered the low-hanging fruit and are our primary focus right now.

Our marketing campaigns to attract these users will kick off soon. However, the crypto market has distinct segments, and we must progress through them methodically:

• Crypto Enthusiasts: Those actively trading and deeply engaged in the crypto world. We are actively targeting this group.
• Crypto Traders: Individuals with financial knowledge who trade on a monthly basis and manage small crypto portfolios. They are looking for opportunities in the market and evaluate risks.
• Crypto Investors: People who buy cryptocurrencies for investment purposes. They may not actively trade or stay updated with daily news but are interested in the long-term potential.
• Crypto Curious: The hardest group to reach, these are people who have some interest in crypto but have not yet taken the plunge.

As we progress through these groups, we will eventually need to target a broader audience, including those outside the crypto sphere. However, this phase is more challenging and expensive, as we would need to engage people who might not have prior exposure to cryptocurrencies.

You mentioned marketing campaigns like ads in the London Tube, which are great for the general public. Still, our primary focus at the moment is to capture the attention of crypto enthusiasts and traders. We've seen substantial organic growth when we reached high rankings, such as 22nd and 19th place, on platforms like CoinGecko and CoinMarketCap. These rankings attract thousands of users to our platform.

To sum it up, our marketing strategy involves targeted marketing for specific user groups within the crypto community. We'll continue to explore niche marketing avenues, such as advertising on gambling websites, which often have a user base that correlates with crypto traders and enthusiasts. As we grow and reach higher rankings, we'll gradually expand our marketing efforts to engage a more general audience.

This approach allows us to make the most of our current user base and steadily grow our platform's presence in the cryptocurrency market.

Diana (Host): What are your views on the future of stablecoins? And what role can they play in the PointPay ecosystem?

Vladimir (CEO): A stablecoin is a cryptocurrency pegged to the value of a fiat currency, so its value is more or less equal to that of a traditional currency. We have several stable coins like USDT and USDC, which were formerly known as something else, but they are pegged to the US dollar, roughly at a one-to-one ratio. However, there have been some regulatory issues and discussions around them.

Recently, many countries have shown interest in digital currencies. For instance, Russia introduced a bill about a month ago, indicating their intention to launch a digital ruble. I'm not entirely sure if it's a cryptocurrency or something else, but it's an interesting development. In Japan, there's the JPYC, which is likely the Japanese yen coin, and it seems Japan is exploring government-mandated pegged digital yen. Europe has also been discussing the possibility of a pegged euro coin, which I believe could be a positive step.

The British government has been talking about the digital pound for quite some time. As a copywriter, I sometimes browse message boards, like cryptojobs.com, or check LinkedIn to get insights into the job market. About a year ago, I noticed that companies like MasterCard and Visa were hiring individuals with crypto and product experience. This suggests they are interested in integrating cryptocurrencies with traditional finance.

Half a year ago, the British government was hiring for the Bank of England, specifically for positions related to the digital pound. The job descriptions mentioned the government's plan to create a digital bank and hire someone to lead the viability review process and potentially introduce the digital pound. Many governments seem to be exploring this space, and it's a welcome development.

Although I don't think the American government is currently pursuing this, we do have established stablecoins like USDT and USDC that are widely used. I wouldn't be surprised to see a euro coin in the near future, possibly the pound as well. Some Latin American countries are also considering similar initiatives. I've heard that in Latin America, the dollar is in high demand due to difficulties in obtaining physical dollars and high inflation. People are turning to pegged cryptocurrencies like USDT and USDC.

Japan, as I mentioned earlier, is already planning the crypto yen. It seems that most major global currencies are exploring this space. It's a welcome change as it indicates that cryptocurrencies don't necessarily have to be volatile. Whether these digital currencies will be government-mandated and regulated remains to be seen. We've seen various approaches, such as requiring one-to-one crypto reserves or even crypto-backed by physical assets like gold.

As for regulations, we'll have to see how different countries like Britain, Japan, and the European Union approach it. With the introduction of the MiCA regulation in Europe, a crypto euro might be the next logical step. In my opinion, this shift is positive; it signifies a move away from traditional fiat currencies and the physical world.

I genuinely believe that, in my lifetime, we will transition to a completely cashless society, which has its advantages. Some argue that cryptocurrencies are about decentralization and escaping government control, but it appears that governments also want a stake in this space, possibly to monitor transactions more efficiently. The transition to digital currencies seems inevitable, and whether these large currencies will adopt blockchain technology or other approaches remains to be seen. Nevertheless, I view it as a positive development for the crypto industry and fintech as a whole.

Diana (Host): Why was the topic of regulation chosen for the recent AMA session with BR Group?

Vladimir (CEO): Well, the topic of regulation was chosen because it's the most interesting and significant development happening globally in the crypto sphere. Seven years ago, there was no regulation in the crypto space; it was like the Wild West, resulting in many people losing money. However, it was inevitable that some form of regulation would eventually be introduced.

Now, many countries are actively exploring cryptocurrency regulation. They are approaching it from various angles. Some are treating cryptocurrencies as financial assets and applying existing financial regulations to them, which is a logical approach as it avoids creating entirely new regulatory frameworks.

Another significant concern is anti-money laundering (AML) regulations. Most trading now occurs on decentralized exchanges, and regulators want to ensure that these platforms collect necessary information to prevent money laundering. This includes passport details, address verification, and source of funds for large transactions. Such exchanges are required to keep transaction history for several years, similar to banks.

Additionally, transactions exceeding a certain threshold, such as 10,000 euros or dollars, must be reported to the relevant authorities, like the SEC in the US or equivalent bodies in other regions. Ensuring compliance with politically exposed person databases is another key aspect to prevent corruption and illicit activities.

Taxation of cryptocurrencies is also a significant concern. Different countries are taking different approaches. Some, like Portugal, treat cryptocurrencies as currencies, not subject to taxation for minor gains. Others integrate crypto gains into overall income tax calculations or have specific thresholds for taxation. For example, in the UK, profits up to a certain limit count toward overall tax liabilities.

In Japan, they faced challenges in collecting taxes due to a high tax rate of around 55%, leading to widespread non-compliance. By reducing the tax rate to 20%, Japan hopes to increase tax revenues from cryptocurrency activities.

Overall, the topic of regulation was chosen because of the dynamic and evolving nature of the crypto industry. We've seen developments in Europe, Asia, and the US, with varying approaches and levels of regulation. It's a crucial topic with significant implications, making it a valuable subject for discussion.

Diana (Host): Let's talk about PointPay rapid ascent in the CoinGecko ranking: what was the reason and when can we expect new heights?

Vladimir (CEO): Well, as I mentioned earlier, our ascent in the CoinGecko ranking was both rapid and substantial. At the beginning of the year, we were positioned in the hundreds. Remarkably, just six or seven months ago, we weren't even listed on CoinGecko. From there, we climbed into the 80s and then further into the 50s. When we introduced our new app, our ranking began to surge. This coincided with a significant uptick in user sign-ups, increased trading activity, and a notable rise in website visits.

CoinGecko, with its data insights, recognized these developments, and our ranking reflected the positive momentum. We've also been diligent in enhancing our website, introducing new features, and implementing penetration testing to ensure security. Additionally, the option for users to confirm their identity on our website has contributed to our growing reputation.

At our peak, we reached the 22nd position, and I can assure you that I personally witnessed us at number 19 once. If you happen to spot us at such a high rank again, please do capture it because, regrettably, I was unable to do so while I was on a train.

Currently, we hold the status of an officially recognized tier two exchange. With the initiation of our marketing campaigns, we have high expectations for further climbing up the rankings. Having already made a 30-place ascent within a matter of months, I believe reaching tier one is a plausible goal. Nevertheless, we remain vigilant and committed to continuous improvement. That sums up our situation.

Diana (Host): Why do changes in the CoinGecko ranking don’t reflect in the CoinMarketCap ranking? Isn't it strange that CoinMarketCap ranking remains remains stagnant?

Vladimir (CEO): This is an interesting question. The reason behind the differing rankings on CoinGecko and CoinMarketCap lies in their fundamental differences. These platforms have distinct methodologies, formulas, and data sources, contributing to variations in their rankings. Additionally, their responsiveness to data changes varies significantly.

CoinGecko's ranking system assigns points for various factors, such as liquidity, trading volume, account visits, and API technical coverage. The crucial distinction here is that CoinGecko provides real-time data updates, making it highly responsive to changes. For instance, if our website visits increase this month, it would reflect in our ranking immediately.

• API technical coverage plays a substantial role, and achieving a high trust score was instrumental in our significant ranking improvement on CoinGecko. We worked with trusted partners to conduct the necessary audits to meet CoinGecko's requirements.
• Cybersecurity is another aspect we are currently focused on improving. We are also attentive to the quality of our team and have ensured transparency by confirming team details.
• Past incidents are assessed to gauge an exchange's history of stability and performance. Thankfully, we have maintained a stable platform since transitioning to our new system earlier this summer.

Now, in contrast, CoinMarketCap employs a different approach, calculating rankings differently and gathering data from distinct sources. They also assign points for proof of reserves, which we are actively working on obtaining.

CoinMarketCap's score for web traffic differs significantly from CoinGecko's. Their data comes from different sources and is updated less frequently. Moreover, CoinMarketCap divides the aggregate score by 30, while CoinGecko provides real-time rankings, which can change within minutes.

Both platforms have liquidity ratings, and though calculated differently, they share some similarities.

We are actively collaborating with CoinMarketCap to improve our ranking, although it is a more challenging and less responsive platform compared to CoinGecko.

It's worth noting that some consider CoinGecko to offer a more transparent and responsive ranking system. CoinMarketCap's longer history and ownership by Binance have raised concerns about potential biases. This can be observed when comparing rankings on different platforms, with Binance often appearing higher on CoinMarketCap than on other ranking websites.

Another important distinction is that CoinMarketCap includes both centralized and decentralized exchanges in its rankings, while CoinGecko focuses exclusively on decentralized exchanges. This difference in scope contributes to the disparities in rankings between the two platforms.

In conclusion, the differences in rankings between CoinGecko and CoinMarketCap can be attributed to their unique methodologies, data sources, and responsiveness, making it essential to consider these factors when interpreting rankings in the crypto space.

Diana (Host): Does PointPay use any services of Certik or any kind of companies like that?

Vladimir (CEO): Indeed, we hold accreditation from Certik for our PXP token, and this accreditation is still valid because we haven't made any changes to the contract. You can verify this on Certik's website, where you'll find our token listed. However, it's important to note that our website hasn't undergone review by Certik, and there's a specific reason for that. We don't entirely agree with their methodology.

Instead, we are opting for a review from a reputable team called HackControl. They are held in high regard, much like Certik. HackControl is currently in the process of reviewing our platform. As for Certik, they tend to focus more on token reviews rather than exchanges.

Given that we have made significant changes and updates, rendering previous accreditations invalid, we are actively pursuing a platform audit. HackControl will be accrediting our platform, and we will be introducing a bug bounty program in collaboration with them. Users will have the opportunity to report issues directly to HackControl, and if their findings are valid, they will receive automatic compensation.

This decentralized approach to bug bounties aligns with our commitment to ensuring the security of our platform. We have established an agreement with HackControl, and the platform review will be introduced concurrently with these developments. Therefore, while Certik provides token accreditation, we are also striving for an accreditation from HackControl to cover our exchange operations.

Diana (Host): A few users ask when we announce out a marketing winner?

Vladimir (CEO): I believe we announced the winner approximately a week ago. To provide the exact date, you would need to refer back to our weekly update, which I believe concluded on August 18th. So, it's been about two weeks since the announcement. The details can be found in our Telegram channel, Medium articles, and on our blog.

We conducted this competition over the course of a month, where we asked for your input on our marketing campaign ideas. We received a variety of interesting responses, ranging from the imaginative, such as burning Teslas in Trafalgar Square, to more practical suggestions. Our marketing team carefully reviewed all the responses and selected a winner.

I apologize for not recalling the winner's name or the specific idea they submitted, but I can assure you that there was indeed a winner. I was personally present at the meeting where we made the selection, and the chosen winner received the designated amount in PXP tokens. So, rest assured that the winner was duly recognized and rewarded.

Diana (Host): Please tell us about the timing of start of marketing campaign, or at least within which months can we expect that? This information is very valuable to all PointPay users and investors.

Vladimir (CEO): I completely understand the importance of this information. I've already outlined our plans in detail regarding how we intend to target our users. We are closely monitoring the recovery of the crypto industry. As mentioned earlier, we are in the process of developing an onboarding feature on our website. Once this feature is ready, we will open it to the general public.

In the meantime, we have already initiated targeted marketing efforts. You may have noticed our rankings increasing on platforms like CoinMarketCap and CoinGecko. Our Telegram chat has also seen significant growth, going from around 30,000 members at the beginning of the month to nearly 45,000 now, which is a substantial increase of 50%.

We are actively acquiring new users through targeted marketing campaigns, including email marketing, databases, and various websites. So, rest assured, marketing is already in progress. However, the full-scale mass marketing phase will come a bit later, likely after we've completed the onboarding feature on our website.

We will continue optimizing our marketing efforts and targeting specific audiences until we reach a point where further gains become more challenging. Once we hit that stage, we will transition to the next phase, which involves broader mass marketing initiatives.

So, there is still ample time for our marketing campaign to unfold. You may start to see more significant changes possibly next month, but we're actively working on these strategies. The marketing campaign has already begun with targeted efforts, and we're gearing up for a more comprehensive mass marketing push very soon. The increased website visits, trading volume, registrations, and Telegram chat activity are all indicators of our ongoing marketing efforts.

I understand your anticipation, and I want to assure you that we are actively working to drive PointPay's growth in the crypto industry.

Diana (Host): Listing on additional exchanges could indeed help PXP and PointPay as a whole. Could you partner with exchanges have a similar rating and simply list each other's tokens? This would immediately expand the assortment of assets and also increase the number of PXP holders?

Vladimir (CEO): As I've mentioned in previous AMA sessions, the listing on tier one exchanges is still part of our plans. We intend to make a significant listing move in the near future, and this is something we are actively working on. We have a few exchanges in mind, and we're carefully evaluating our options, including the possibility of listing on more than one exchange or exploring partnerships with others.

However, it's important to note that a tier one listing wouldn't be as effective unless we enhance the usability and utility of our token within our platform. To achieve this, we're focusing on introducing additional features and use cases for PXP within our ecosystem. This is our top priority at the moment.

Once we've significantly improved the utility of our token and expanded its use cases within our platform, we will move forward with the tier one listing. It's worth mentioning that our growing popularity and positive ratings on platforms like CoinMarketCap are contributing to our attractiveness to tier one exchanges.

In summary, we believe we are in a much stronger position than we were six months or a year ago. We are comfortably positioned within the top 30 exchanges, and our community is thriving. A tier one listing is on the horizon, but for now, our primary focus is on enhancing the utility of the PXP token within our ecosystem. We have existing partnerships and agreements with other exchanges, and when the timing is right, we will consider taking action on those agreements. That's the current state of affairs.

Diana (Host): And that was the last question. As always, thank you very much for your answers.

Vladimir (CEO): Thank you very much. It was a pleasure talking to you all. I do know that I've been talking for quite a while, so sorry about that. But thank you all very much for joining me for this amazing AMA session. The next AMA session is going to be at the end of September 28th. It will mark the end of the third quarter, and we'll likely be summarizing what we've achieved in the last quarter. There won't be a third-quarter review, but I will be summarizing our accomplishments. I'll make sure we have some exciting news and announcements to share with you all.

So, do stay tuned. Let's work on improving our amazing ratings and viewership on Telegram. Hopefully, the next time I see you in a month, we'll be at number 50 CMC or even number 10 CG, who knows? I hope we'll reach those ratings. I also hope that our rating on Coin Market Cap will improve, and our token price will see positive growth as well.

Thank you, Diana, for collecting those questions, and thank you all for tuning in and listening to me for the last hour. I'll see you at the end of September.

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