Dear PointPay Family,

PointPay CEO Vladimir Kardapoltsev participated in a traditional AMA session on September 26th, 2024. He shared the latest news about PointPay, made several announcements, and discussed a lot of events within the platform!

Below is a summary of the AMA held on the 26th of September, 2024.

AMA Transcript

Vladimir (CEO): Hello, PointPay Family. Welcome to our traditional end-of-month AMA session. Today is the last Thursday of September, the 26th. We’ve had quite an eventful month, and I’m excited to share the latest updates 

As always, with me is Diana. Hello, Diana!

Diana (Host):  Hey, everyone. Let's dive in and hear the latest news and announcements from Vlad.

Vladimir (CEO): Okay, let's dive in for our monthly updates. From September 18th to 19th, the Token 2049 event took place in Singapore. Our team attended, though I, unfortunately, couldn't join. Our CBDO, Igor, represented us there. We shared videos on Instagram and posted photographs on Twitter and Telegram for those who missed it.

This was one of the most significant events in the crypto space, featuring prominent figures like Vitalik Buterin, who even performed in Japanese, as well as CEOs from Binance and Bybit. In addition to Vitalik Buterin, other notable attendees included Edward Snowden, who participated via video link, Anthony Scaramucci, host of the political podcast "Rest Is Politics," and Bryan Johnson, known for his longevity-focused lifestyle. These influential figures added great value to the event. 

Our team member, Artemis, who resides in Singapore, was there to assist us. We also had the pleasure of meeting several members from our VIP group, which was truly gratifying.

The conference proved to be a fantastic opportunity for us. We made several valuable connections and engaged with potential projects, which may lead to upcoming listings. We anticipate the integration of a new payment provider as a direct outcome of this event.

Compared to the Dubai conference earlier this year, this event was even larger. Despite the excitement of the Dubai conference, attendance was affected by a biblical flood, which hindered many from participating. I wasn’t able to attend due to work commitments and the lengthy travel time from Dublin, but I am looking forward to attending the Dubai event next year.

Moving on, let's address our September listings. In September, we introduced new token listings, including Code (DOGS), Sun (SUN), VIDT DAO (VIDT), and Voxel (VOXEL). With these additions, we’ve confidently surpassed the 125-asset mark on our platform. As promised, we aim to reach the 150-asset milestone by the end of this year. We’re well on track, and reaching this goal is definitely achievable.

Regarding the marketing campaign, let me update you on the current situation. We're waiting for more stable market conditions before launching, as recent fluctuations have made it an uncertain time for such initiatives. The campaign is ready, but we are waiting for the right moment.

It's important to note that releasing products during market instability can significantly impact the campaign's effectiveness, risking the resources invested. I've experienced this firsthand; in 2018, launching products during a market upswing made it easy to secure investments. Conversely, launching during downturns can lead to wasted efforts.

The current market sentiment is crucial, and we want to ensure our campaign aligns with positive trends. Fortunately, we have the resources to sustain operations, allowing us to wait for the right timing. Although it may be frustrating, our products are 99% ready, having passed final testing. However, we prefer not to launch when the market is down.

We anticipated a market boom in September, but it didn't materialize. Now, we're looking at October or November. Everything, including the marketing campaign and key opinion leaders, is prepared. We're simply waiting for the right opportunity.

The recent growth in our token is encouraging, but we're closely monitoring Bitcoin's stability, as it's a significant market indicator. We believe the ideal time to launch will be when Bitcoin surpasses $60,000 and trends steadily toward $70,000.

We expect the campaign to commence before the end of this year, although the market hasn’t been favorable so far. Approximately 30% of our campaign's success relies on market conditions, and current trading volumes remain stagnant. However, many companies, including us, have maintained stability due to prior funding. We remain poised for action once the market rebounds.

All right, time to talk about audits! Our security audits have now been updated on both CoinMarketCap and CoinGecko. Throughout August and September, our exchange rankings experienced a decline—typically, we maintained a top 30 position on CoinGecko and top 60 on CoinMarketCap. The drop was due to newly introduced cybersecurity metrics that required compliance.

Previously, I mentioned plans to finalize the audit by September 10, but the auditing company experienced delays. By September 18, the audits were completed, and we retested them. Our rankings are now returning to their usual positions.

Additionally, website traffic declined, dropping from 2.8 million to 2.3 million monthly visitors, largely due to this issue. However, we expect traffic to recover by mid-October. Despite this temporary setback, we continue to serve our loyal customer base and are regaining our positions on CoinMarketCap and CoinGecko.

Our strategy for the rest of this year and early next year is to maintain this momentum by increasing trading volumes, website traffic, and potentially implementing proof-of-reserves. This will enhance our trust score and strengthen our standing among the top 20 exchanges.

During that time we also have a Polygon Token Swap. Two weeks ago, we assisted Polygon with a token swap, transitioning old Matic tokens to the new Polygon tokens on a 1:1 ratio. There was a brief issue due to network problems on their end, but this has been resolved, and trading resumed on September 20.

Speaking of technical moments, we conducted scheduled website maintenance last Monday and Wednesday, resulting in temporary downtime. This was part of significant upgrades to our trading ecosystem. While the process took longer than expected (over six hours instead of two), it was completed successfully, and our systems have been enhanced.

The PointPay app also received substantial updates. If you haven’t checked it recently, I encourage you to explore the refreshed pages and improved user flows. We consistently implement medium-scale improvements to both our website and app to stay aligned with market conditions.

Moving on and let's talk about competitions! We recently launched a trading competition aligned with International Tourist Day, offering a total prize pool of $1,700 in USDT. Prizes are allocated as follows: $1,000 for first place, $500 for second, and $200 for third. Regular traders need to actively join this competition, as participation isn’t automatic.

Additionally, we’re running a meme competition centered around the theme of travel, emphasizing how cryptocurrencies facilitate seamless global movement. Participants can post entries on Twitter or Telegram using #PointPayMemeContest. Prizes are awarded in PXP: $300 for first place, $150 for second, and $50 for third. I will personally select the winners, at the end of September!

These were the key updates for September. I invite you to participate in our activities and monitor our rankings on CoinMarketCap and CoinGecko as we continue to make progress.

Vladimir (CEO): That's all for now! Okay, let's move on to the questions!


Diana (Host):  Do trading competitions show all participants or only a limited number?

Vladimir (CEO):  We've experimented with different approaches. Currently, the trading competition displays a partial list, usually showing the top 10 winners. In cases where there are fewer participants, it might show the top five. However, the full list of participants isn't always visible. At the start, all participants may be shown, even those who haven't traded yet. As the competition progresses, only a select number, primarily the active traders, remain visible. 

Most participants typically join towards the end, with a noticeable increase in activity, especially in the final hours.


Diana (Host): PointPay is translating some materials into languages other than English, such as French, Portuguese, and Spanish. Will you expand this list?

Vladimir (CEO): Yes, the languages were chosen based on extensive research of our user base. The majority speak English, Brazilian Portuguese, Spanish, and French, covering about 90% of our users. While most Portuguese speakers are from Brazil rather than Portugal, Spanish-speaking users mainly come from Spain and South America. French covers not just France but also former French colonies in Africa.

We acknowledge that localization is a time-intensive process. We have a dedicated team of translators, many from our community, who ensure the accuracy of every translated post. Monthly, we publish a transcript of our AMA session, meticulously prepared by a team member, which is then translated into these languages. Emails are also sent in these languages. However, for other languages like Chinese or Russian, we aim to improve localization by the end of the year, ensuring system emails are fully translated.


Diana (Host): How much can a growing market help with the marketing campaign?

Vladimir (CEO): As I mentioned earlier, in a worst-case scenario, we might see a 20% to 30% boost. However, when the market is on the rise, based on real-life examples I've experienced, this increase could potentially reach up to 50% or even 70% if market sentiment is highly positive.

This impact is evident when aligning with the right trend, as seen with the introduction of AI, where any company associated with AI experienced a significant boost in investment activity. Investors tend to follow trends, which fluctuate and undergo market adjustments over time.

When launching a marketing campaign in a positive market environment, a minimum boost of 20% to 30% can be expected, with the possibility of reaching over 50%, or even 70%, in ideal conditions. Fortunately, we have established products ready for release, such as the mainnet, TMA, and PXP portal. We're simply waiting for favorable market conditions.

Currently, the market is somewhat unstable, fluctuating up and down. We aim for a more stable or upward-trending market, which we hope to see soon—perhaps in October or November, and most likely by year-end. Our products are ready, but due to the current volatility, we're waiting for the optimal moment to launch. I’m optimistic about an upward trend appearing soon.


Diana (Host): How much growth did we expect from the marketing campaign to be in the right period of the market?

Vladimir (CEO): We anticipate growth ranging from a minimum of 20% to a maximum of around 50-60%. A significant aspect of the marketing campaign is ensuring we launch at the right time, in the right place, with the right product. We believe we have the ideal product and marketing team, and we've established connections with Key Opinion Leaders (KOLs).

We aim to step in when the market rises, allowing us to quickly capitalize on the opportunity. However, if we were to launch the marketing campaign now, we'd risk spending substantial funds with potentially disappointing outcomes. This would be disheartening, especially after the team's hard work in implementing the Mainnet, PXP portal, and Telegram app. They have worked tirelessly, some for over a year, to bring these projects to fruition.

Unlike other businesses that are forced to launch due to financial constraints, we have the flexibility to wait for favorable market conditions because we are already generating revenue and have sufficient funds. This patience is crucial, ensuring that our efforts yield maximum returns.

Reflecting on 2020 and 2021, PointPay's success was due to entering the market at the right moment, allowing us to raise significant funds through an ICO. Nowadays, raising even $2 million is remarkable, yet we accomplished much more due to perfect timing. We're determined to create a renaissance for our company by launching our marketing campaign at the most opportune moment, with the right product and strategy.


Diana (Host): What are PointPay's upcoming plans?

Vladimir (CEO): Our primary focus is the TMA (Telegram App) release, which is fully tested and operational. We’re confident in its performance, and it's a significant milestone for us.

In addition, we're launching our mainnet, which is approximately 97% complete. The backend work is done, and we're finalizing aspects like the knowledge base and website. This will be ready soon.

We’re also introducing the PXP Portal, which will connect our PXP blockchain mainnet with the portal. This will allow users to complete tasks—such as signing up to social media, buying PXP, confirming their email, making their first trade, etc.—and earn PXP rewards. These earned tokens will have multiple use cases on the platform, like trading fee discounts. The idea is to create a cohesive ecosystem where users can interact, earn, and utilize their PXP tokens.

Additionally, we launched a "Learn and Earn" initiative in collaboration with our partners. This allows users to watch educational videos, answer quizzes, and earn tokens from various projects. For instance, watching a video about Ethereum might be followed by a quiz question about its founder, and correct answers would earn small amounts of Ethereum. We’ll implement a similar model for PointPay-related content, helping users gain PXP rewards for their engagement.

We’re also working on several other products as part of our ecosystem, though we're not ready to announce them just yet. Margin trading has already been developed but isn’t released due to current market risks.

Currently, our main focus is on business development, sales, and enhancing user experiences by regularly updating our app and website. Our aim is to ensure that everything is user-friendly and meets the standards expected from leading platforms.


Diana (Host): Can we expect any releases or updates before the marketing campaign, or is everything tied to it now?

Vladimir (CEO): Yes, everything is tied to the marketing campaign, including the release of our main products. We've invested considerable time in developing them, especially the Mainnet, which took about a year. We want to ensure it's launched at the right time.

The PXP Portal is also linked to the Mainnet and took about three months to develop, while the TMA took around a month. These releases were originally planned to be gradual, starting with a token swap, followed by the marketing campaign. However, market conditions shifted after the token swap, prompting us to adjust the timeline.

Although this caused delays, it allowed us more time to thoroughly test the products, update our apps, and enhance the website. Now, all releases are aligned with the marketing campaign and will be launched gradually to maximize impact. Launching earlier without proper marketing support would mean missing out on crucial opportunities to generate excitement.


Diana (Host): Is PXP an investment asset?

Vladimir (CEO):  That's a nuanced question. Many might see it as an investment, but legally, PXP is not an investment asset. Regardless of what’s stated in AMAs or marketing materials, it remains classified as a utility token.

We have legal opinions from three lawyers (two in the US and one internationally) confirming PXP’s status as a utility token. It's modeled after the BNB token, which has repeatedly been proven to be a utility token. While its value may fluctuate, PXP’s core function lies in its clear utility within the PointPay ecosystem.

With the launch of the mainnet and the PointPay portal, PXP’s utility will further expand. We are not regulated by the SEC, and several legal opinions support that PXP is meant for use within the website. Although its value might rise due to increased usage on our platform, this is beyond our control since PXP is traded openly on various platforms, driven by market dynamics.

Importantly, PXP doesn’t offer rewards or company profit shares, which would otherwise classify it as an investment. Its primary purpose is to facilitate platform functions such as paying trading commissions, participating in voting through the token booster, covering gas fees on the mainnet, completing tasks, and enhancing user levels to reduce commissions.

In essence, PXP is a utility token, and it should be regarded as such. Any potential increase in value is determined by market trends, not promises or guarantees from us. Our focus is to enhance platform functionality and utility, which may indirectly influence demand. As demand increases against a fixed supply, the value could rise, but that’s a natural outcome of market forces.


Diana (Host): The trading volume on Coinpay fluctuates constantly. What's causing this?

Vladimir (CEO):  The fluctuation in trading volume is primarily influenced by the activity patterns of PXP holders on our platform. The majority of PXP transactions occur here, mainly due to the concentration of our user base. Geographic trends also play a role, with most trading activity linked to European working hours.

Users from South America and the US trade in lower volumes compared to Europe, where most of our traffic comes from France, Spain, Portugal, the United Kingdom, and the Netherlands—countries within a similar time zone. This suggests that trading peaks during European working hours and declines when these regions are inactive.

Technical factors may also influence these fluctuations, such as data processing and how trading activity is displayed on external platforms like CoinMarketCap and CoinGecko. Additionally, other markets like Brazil, Nigeria, South America, the US, and Canada contribute to our overall traffic, but European users dominate our platform.

I’ll further research the technical aspects, but overall, there’s no immediate cause for concern.


Diana (Host): I opened my PXP wallet after a long time and saw that I have zero tokens. I didn't do anything, and they were in savings. How is this possible?

Vladimir (CEO):  Welcome to 2024. We conducted a token swap about half a year ago, in spring. If you haven't swapped your tokens yet, please contact our customer support at PointPay IO to request a swap. Note that this option will be available only until the end of the year.

Your tokens haven't disappeared; they are still in your wallet. You'll find them under "Old PXP," but their value is currently zero since they're not being traded. You need to swap your old PXP tokens for the new ones, which are now simply called PXP, to see the correct market value.

The system pulls data from multiple sources, and since the old PXP is no longer traded, its value appears as zero. After swapping, the new tokens will reflect their actual value. To proceed, go to your assets, select "Old PXP," and contact customer support via the intercom on our website or email to complete the swap.

Please keep in mind that the token swap will be closed by the end of the year, although the exact date isn't set yet. We're currently at about a 98% completion rate for this process.

It's essential to stay informed about your investments. We sent several emails about the PXP swap, included notifications in email footers for two months, and invested significantly to ensure everyone was aware. If you continue holding tokens, make sure to stay updated on related news. If you prefer not to follow the news, consider selling them, but staying informed is always advisable.


Diana (Host): How many PXP tokens does the company hold?

Vladimir (CEO):  The number of PXP tokens allocated for company needs, such as partnerships and marketing, is detailed in the Tokenomics section of our website. While I don't have the exact figures at hand, it's available there, along with an article and document explaining the breakdown.

To provide a general idea, around 50% of the tokens are allocated to the ecosystem—meaning regular token holders—following a reduction we made during the token swap. We decreased the allocation for the team and marketing needs to increase the share for regular holders, as we considered it crucial.

Currently, approximately 20% of tokens are set aside for the team and advisors. Additionally, 10% is allocated to ambassadors and partnerships, another 10% is for the DAO, and the remaining portion goes toward advertising and promotions.

For precise figures, I recommend checking the Tokenomics section on our website, where a comprehensive presentation and pie chart illustrate this allocation.


Diana (Host): Okay. Why didn't you attend Token 2049 in person this time?

Vladimir (CEO): As mentioned earlier, I had a prior commitment last week that I couldn't miss. Given the 16-hour flight, attending wasn't feasible, as it would have taken up an entire day.

However, we had strong representation at the conference. Our CBDO, a trusted community manager, and our valuable team member Artemis attended, along with members from our VIP group and another individual who contributed significantly. We ensured more than adequate presence there.

While I regret missing this event due to the unavoidable commitment, I assure you I'll be present at the upcoming Dubai conference. I’ll also make every effort to attend the next Token 2049 in September, considering this year's success.


Diana (Host): How does PointPay plan to surpass the current leaders among the CEX?

Vladimir (CEO): We aim to directly compete with other centralized platforms, and one of our primary advantages is our low fees and commissions. Additionally, our website is highly intuitive, and we have an exceptional user experience board to enhance our platform further.

Our token is already a cornerstone of our ecosystem, which will attract more users. Moreover, our unique Telegram app (TMA) sets us apart, as none of our competitors have this feature. It's ready for launch, and we believe it will differentiate us in the market. This innovation positions us to lead, and we are confident in becoming the next big player in the industry.

Many exchanges focus on specific niches, but we cater to the EU and US markets, generating higher trading volumes. These regions often produce more substantial commissions compared to other areas, such as South America and Africa, where trading volumes are typically lower despite having larger user bases.

We are fully licensed and, with the launch of our TMA and blockchain, we're poised to stand out and climb the rankings. Additionally, our plan to implement proof of reserves will solidify our position, comfortably placing us in the top 20.

In terms of timing, we're almost there. Let's proceed with the final question.


Diana (Host): Releases are delayed, activities are infrequent, and there are very few new users. When can we expect the marketing to finally begin? It seems like constantly pushing back the launch will only hurt more.

Vladimir (CEO): I must respectfully disagree. Our products are ready. While you mentioned that there are few users, I would argue otherwise—we continue to see a considerable number of new users joining our platform. Although the numbers have decreased since the market downturn, they remain substantial for a platform of our size.

As for marketing, I have addressed this in previous responses. To avoid repetition, I’ll simply say that we are waiting for the right moment to launch. We ask for your patience and trust in our process. Our product is outstanding and ready, and we aim to launch when the market conditions are more favorable.

Diana (Host): That’s all!

Vladimir (CEO): Thank you very much for your help, Diana. I would also like to extend my gratitude to everyone who joined us today for this AMA session, especially to those who stayed with us from the beginning to the end.

While not all of our users could be here live, I know many of you watch the recorded sessions later. Judging by the numbers, around 30, 50, or sometimes 100 people join live, but we typically see thousands of views afterward. Our last session reached 14,000 views, which is incredible. It’s great to see so many of you engaging with the content at your convenience.

As we move forward, let's aim for a remarkable October. A few key things to remember: our trading competition is still ongoing in honor of Tourism Day—please take part if you haven’t already. The meme competition is also active, so feel free to join that as well. We had a fantastic time at Token 2049 in Singapore, and we're continuously adding new tokens and assets to our platform. We're doing great overall, and we hope to kick off our marketing campaign next month.

Even if the market is down, we must do everything we can to drive growth and push prices back up. Thank you once again. Have a wonderful weekend, and a fantastic day ahead. Goodbye.


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