The Gold Coast cryptocurrency Qoin has rejected concerns raised about its transparency after it was expelled from the peak industry body, Blockchain Australia.
- Blockchain Australia has terminated the membership of the cryptocurrency Qoin, which claims to have 28,000 ‘validated merchants’
- Former Blockchain Australia board member says unlike other cryptocurrencies, Qoin is traded in a ‘closed’ system
- But Qoin says it’s ‘appalled’ by Blockchain Australia’s decision and has defended its model
In a statement released last week, Blockchain Australia said that Qoin “has been asked to cease the use of the Blockchain Australia logo and name in connection with their business or promotional activities”.
Blockchain Australia represents at least 70 organisations involved in digital currency, including Victoria’s Department of Economic Development, Jobs, Transport and Resources.
A spokesperson for Blockchain Australia declined to comment further.
But Qoin’s chief marketing officer, Andrew Barker, said the cryptocurrency entity had been “appalled” by the disciplinary action and would continue to trade.
Mr Barker said “we take commentary around three points being scam, ponzi and pyramid on social media”.
“We are licenced to do what we do, and we do it within the means of the law.”
What concerns have been raised?
In September last year, Qoin described its target market as “mum and dad investors”, looking for a cryptocurrency which could be used to purchase goods and services by scanning a QR code.
Qoin-affiliated Facebook groups advertise products ranging from band tickets, cars, clothing and food, to fitness, cleaning and business services.
However, some within the crypto-investor community have raised concerns about Qoin’s transparency.
Alex Saunders is a former board member of Blockchain Australia and founder of Nugget’s News — a cryptocurrency news outlet that has about 250,000 subscribers across its social media platforms.
He said unlike other cryptocurrencies and the exchanges they’re traded on, Qoin is bought and sold exclusively on Block Trade Exchange [BTX].
Both BTX and Qoin are owned by the same company, BPS Financial Limited.
But Mr Barker said BTX and Qoin operated separately.
“A collaboration probably not, commentary or communication, sure,” he said.
“There’s a Qoin value and then there is a price set by the BTX or Block Trade Exchange and they are separate.”
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