Most of you probably know me from Stratis Platform. Normally I don’t do a lot for other projects, however, I made an exception for Beaxy Exchange.
Stratis is more and more self-sufficient every single day, so I have spare time and decided to look at all the new innovative projects that could have a bright future and make the crypto space a better place. In my search, I came across Beaxy Exchange and I was instantly hooked.
I had the privilege to spend a few hours with the CEO, Artak Hamazaspyan, to ask all my burning questions and got satisfying answers all across the board. After doing all my research, I felt it was time to share it with the crypto space.
Before you start reading this review, be sure to register yourself for Beaxy Exchange over here and do the KYC. If you need any help with registering and doing KYC, Beaxy made a tutorial video, which you can find over here.
In this article, I will tell you more about Beaxy Exchange and it’s Token Sale. The topics are:
- About Beaxy Exchange
- Beaxy for everything you need
- Beaxy versus competitors
- The team
- Social media
- “Hype” and marketing
- Listing process
- Liquidity and users
- $BXY Token
- Staking Program
- Referral program
- Token Sale Details
- Budget Allocation
Disclaimer: Never take anything I say (or anyone else on the Internet says) to be investment advice. Consult with a professional, and extensively do your own research before ever investing into anything.
About Beaxy Exchange
Beaxy is an all-in-one exchange created by a group of professional coders & traders. The Beaxy Exchange platform is smart, secure, easy to use, and also features advanced tools for experienced traders. Beaxy’s platform differentiates itself by offering unmatched security, service, and superior tech.
Beaxy offers top-notch security by conducting a unique IP whitelisting process, utilizing hot & cold wallets, and having the exchange thoroughly vetted by white-hat hackers. Superior customer service is provided by employing dozens of customer support staff and offering 24/7 live support beginning shortly after exchange launch in June of 2019.
Beaxy has also secured an exclusive partnership with OneMarketData to provide stock market exchange level order book and matching data systems. This system will allow Beaxy to service more than 20 different order types, including limits, stops, trailing orders, OSO, and more. This partnership allows Beaxy to offer a premier trading experience as yet unseen in the crypto space.
Beaxy is registered in Nevis and their headquarters are in Chicago. Beaxy is actively researching the opportunities to be registered in Malta or Gibraltrar.
Beaxy for everything you need
As mentioned earlier, Beaxy is an all-in-one exchange. What does this mean? Well Beaxy is aiming to be the place to go to for everything that’s crypto related. What can you expect from Beaxy?
- FIAT trading pairs
- Instant deposit of FIAT currencies
- Transactions scale infinitely, so no more down-time
- Best security practices
- Mobile Application for IOS and Android
- A lifetime referral program
- Loyalty Rewards Program
- Staking Program
- Academy with information for beginners in crypto
- Multiple wallets per token
- Simplicity in adding new tokens
- 24/7 live support
- Over 20 different order types
- And much more
Beaxy versus competitors
Everyone knows there are more and more exchanges popping up, it feels almost like every day there is a new one. Where Binance sets a good example, there is still lots to improve for exchanges in the crypto space. For example, an exchange that has no downtime when there is a surge of users due to a huge move in the market.
Well, that’s where Beaxy steps in. They are aware of the flaws in the current exchanges because the exchange is built by traders for traders. Traders who use exchanges daily. So let’s have a look at the competitive advantages of Beaxy compared their competition:
- The Beaxy Exchange platform is built in-house utilizing the same technologies used by Bloomberg and Scottrade for high throughput, low latency database performance. This technology, proven in the stock market, can support hundreds of thousands of trades per second with less than a millisecond of latency
- Beaxy has an exclusive partnership with OneMarketData (services clients like Scottrade and Bloomberg) and thus will be able to incorporate unique order types otherwise not seen in the crypto space (e.g. trailing orders, OSO)
- Beaxy will offer 24/7 customer support, including live chat + AI bot
- Beaxy will offer smart features for investors which include: detailed graphs, portfolio management tools, tax ready reporting and price alerts
- Beaxy will offer the ability to create more than one wallet per currency, customizable according to investment needs. Transfers across wallets will incur no fees
- Tradingview charting integrated directly into the exchange. Whatever you can do with Tradingview you can do on Beaxy
- A unique approach to security
It makes sense, doesn’t it? Well, most of the things mentioned above are not available on most exchanges or any. Beaxy is aiming for the top, and they are pretty ambitious. Have a look at Beaxy and their competition:
One of the most important factors you should be looking at any exchange is their security measures. Personally I would recommend everyone to keep as minimum amounts possible on exchanges because you don’t own your own private keys.
That being said, currently, Beaxy Exchange is in the final stage of discussions with Optiv, cyber security giant, to provide penetration, cloud infrastructure, white box, black box, and many more tests to insure Beaxy’s security.
The Beaxy team is already pretty big. They have 25 full-time employees and 25+ halftime contributors all over the world. Most of their team members are traders and coders.
So let’s highlight three of them:
- Federico Almaraz Director of Engineering. Federico has a remarkable 17 years of experience designing software and 8+ years leading software development teams. With another 10+ years of experience developing financial commercial software focused on security and high availability, he is an ideal fit to be Beaxy’s Director of Engineering. Mr. Almaraz is skilled in working effectively with diverse groups at all organizational levels and is an effective and creative problem solver with a proven ability to manage multiple projects across functional teams. He has extensive experience with distributed systems, commercial software, application security, OWASP, SaaS, Service Oriented Architectures, Microservices, & highly maintainable and available systems.
You can find more of their team members and advisors in the whitepaper, you can find the link at the bottom of this article.
So their most interesting partner for me is called OneMarketData. OneMarketData is a leading provider of software solutions for the financial industry (Bloomberg, Scottrade, CreditSuisse, and more). OneTick, its flagship software, is a comprehensive suite for time-series data management, real-time event processing and, analytics. Beaxy will have an exclusive partnership with OneTick, meaning no other cryptocurrency exchange will have access to this technology. There is a OneTick Whitepaper available over here.
So what does this mean for Beaxy? Well, they have the goal to have a high-performance analytics and data management platform to power their exchange matching engine. The OneTick system allows Beaxy to execute trades and range wallet transactions in a low-latency and fault-tolerant way.
For example, Beaxy can do 10x more tp/s than Binance on day one and can scale infinitely off trading pairs beyond that.
In words for everyone to understand, this should mean that Beaxy is one of the or even the fastest crypto exchange around. This should resolve in minimal to zero downtime, even when there is a high user amount due to a sudden move in the markets. Pretty exciting if you ask me :).
A further explanation of the rest of their partners can be found in the whitepaper (link is at the end of this article).
Beaxy started their journey in 2017, and they have completed a series of tasks as you can see in the roadmap below. So what is still to come and interests me?
I am personally a big fan of FIAT integration, and I am very happy to see Beaxy will offer this. The ‘bummer’ part is that it’s not there till the end of 2019. Which is understandable, because in order to have FIAT integrated you have to comply with a lot of regulations, especially in the USA.
So what can we expect ? Well, we can expect a LIVE exchange in Q1 of 2019 (Updated to June 2019), take a minute and think about that. That’s only a few months from here… So you are potentially buying into an exchange that’s almost ready and has a utility for the token you invest in right away. You can even see how it looks like right now, with their demo on the website.
A lot of the funds will go to R&D, so I am sure in the future they will add more features to their roadmap. Meaning they will stay ahead of the curve.
You can find Beaxy Exchange on:
“Hype” and marketing
One of the things investors look at is if there is a lot of demand for a Token Sale. Is there hype surrounding the project? Personally, I rather focus on the fundamentals, but I did want to highlight Beaxy’s idea on how to bring clients and investors.
Beaxy is very different from other crypto projects in their approach to fundraising. Their motto is “Build then talk”, which brought them where they are today. They already have a working exchange demo, which anyone can access on their website.
After they launched their demo, Beaxy started fundraising in private rounds which is going to be active until the launch of the product.
Beaxy will work with a lot of the known Crypto influencers to get more traction for the platform and their ongoing token sale.
Beaxy will start listing other projects for free at the start. Later on, they will ask for a fee depending on the amount of work. The fee will never be a high fee as you see with some other exchanges. It will be the costs of the work that has to be done before a project can be listed. Things like developer hours, legal due diligence, checking if a coin is a security or not and a good analysis of the team and project and if they are capable to deliver their project.
Which in my opinion is more than fair, nothing is free in life, so where there is work, there is also someone who has to pay it.
Liquidity & Users
One of the most important things people should ask themselves about an exchange is how they will get users and liquidity to the exchange. Before Beaxy has launched, they already have 60,000 registered users where 15,000 already did KYC (June 2019: Over 22,000 KYC).
Beaxy’s fee approach is to focus on encouraging liquid markets. Therefore, Beaxy incentivizes Market Makers by rewarding them with a rebate — only the market taker pays the trading fee commission. Beaxy has in-house market makers/liquidity providers for their main pairs.
Anyone that knows me knows how important it is to me for a project to have a healthy community. In November last year I helped Beaxy to build their Discord and start building a community. We set the Discord up with the highest security-measures, meaning most users won’t bother to join but if they do they are legitimate interested people in Beaxy. I prefer quantity over quality and does Beaxy.
Since November 2018 the Beaxy community has grown to 6,000 members and is growing rapidly. A community can be a good reflection of a project, if community members are helping Beaxy out on their own without getting paid for it that means they feel valued and want to become ambassadors without expecting anything in return.
It’s been a blessing to be part of the Beaxy community for these last few months and we are only getting started. The support is amazing and Beaxy really cares about their community. There is always someone from the team to help out newcomers and answer questions.
Join the Beaxy Community on Discord here.
In any Token Sale, one of the key things to research is the use case of the token you invest in. You should be asking yourself if a project really needs a token. If your answer is no, I would stop looking any further.
The $BXY token offers multiple functions within the Beaxy Exchange:
- Pay exchange fees at a 50% reduced rate when you pay with $BXY tokens, similar to existing concepts like Binance $BNB (this discount is offered for life)
- Access to staking program
- Access to private pools
- Voting in user polls
- In-store purchases
So as you can see from an investor point of view the use cases of the $BXY token are very appealing. I will explain some of them in more detail later in this article.
Another important thing I look at as an investor is potential liquidity, a lot of ICOs are struggling because they can’t enter decent exchanges and with that comes the problem of illiquidity. Well, that’s not an issue with Beaxy because it’s an exchange there is the certainty of a listing, namely on the Beaxy Exchange.
In my opinion the $BXY token can be classified as a utility token. My reasoning for that is because most of the tokens are sold in private, the tokens that are left will be sold on the Beaxy Exchange when it’s live, and the token has utility right away.
Staking program / Loyalty Rewards Program $PLS token
Beaxy chose to use an alternative token for their Loyalty Rewards Program, the PLUS ($PLS) token. The $PLS token will apply to be a registered security token in applicable jurisdiction.
$PLS tokens may not be transferred or sold to a third-party but can be exchanged for $BXY tokens at a 1:1 rate. It will not be a part of the Token Sale process. Important to note is that due to regulatory uncertainty, $PLS will not be available for United States citizens.
So how does the program work? Qualified holders will receive a percentage of transaction fees collected based on the duration the $PLS tokens are locked, and the percentage of each user’s share among all locked $PLS tokens.
- Up to 1 month: receive 15% of fees collected
- 1–6 months: receive 20% of fees collected
- Beyond 6 months: receive 25% of fees collected
This is a very innovative approach that could mean that a lot of the $BXY tokens are of the markets and as a staker, you can earn a nice amount of fees if the Beaxy Exchange is a success.
As mentioned earlier you can receive a discount of 50% in trading fees when you use $BXY tokens. However, there is another way to get discounted trading. With the staking program, you will have the option to lock up some of your $BXY tokens to receive a discounted trading fee.
Each registered Beaxy user will be able to take advantage of their Referral Program. If you refer a friend, you will receive 10% of their transaction fees for the lifetime of their account.
Those who join through a referral code will be granted a Platinum level account (20% discount on trading fees) for a limited time period (60 days).
When you help Beaxy grow everyone wins.
Token Sale Details
The Beaxy private sale has started in June 2018 and there was a family and friends round in January 2018. The private sale is currently ongoing, currently there is raised around $ 3 million USD. There is a soft cap of $ 4.2 million USD and a hard cap of $ 19 million USD. In total, Beaxy is selling 60% of the tokens.
Update 6 May 2019, the total amount raised so far is around $ 8 million USD. The soft cap of $ 4.2 million USD is reached.
Any tokens that remain unsold in the private sale will be available for purchase directly on the platform after launch for the following 100 days. The price of the tokens for sale on the platform will be determined by fair market price. All unsold tokens after the on platform sale will be locked away for three years.
$BXY tokens will be transferable on the Beaxy Exchange once its operational in June of 2019.
Beaxy launched their Beaxy Public Token Sale at Paperstreet on February 11 2019, and it will last till 25 February 2019.
Token Sale Information:
- Minimum 1 ETH
- Maximum 5,000 ETH
- $BXY Price of $ 0,045 for investments of 1 till 99 ETH
- $BXY Price of $ 0,035 for investments of 100 ETH or more
- ETH Price locked at $ 150
The total supply of $BXY will be 1,000,000,000 if all tokens are sold, 600,000,000 $BXY will be for sale. Update 4 March 2019, Beaxy re-evaluated their token metrics and decided that they are going to eliminate half our their token supply before hitting the market. This means that from the total supply of 1 billion, 50 % (500 million $BXY) gets eliminated. So what does this mean for the supply?
- 300 Million of the 600 Million tokens to be sold will be eliminated
- 200 Million of the 400 Million tokens from the company reserve will be eliminated
So that means the ratios (60% for the token sale and 40% for the team) will remain the same.
So you can say based on the valuation of other crypto exchanges, the soft and hardcap are pretty fair and at a good valuation for investors.
Beaxy will retain lawyers to ensure compliance with necessary laws to operate and pursue the necessary licenses to offer all the features in our roadmap. Projected to be Beaxy’s largest expense; 35% of the budget has been allocated to the development of Beaxy’s roadmap through R&D.
Marketing is an important part of attracting users to the platform for a healthy trading ecosystem and thus deserves significant expenditure. Operational expenses are those essential to operating the business and include hiring, office space, training and more. Customer support is an area where we want to excel and thus will spend what is needed to deliver superior service to our users.
One of the things we all want in crypto is mass adoption, what do you need for that? Well, a platform that’s easy for everyone to understand (beginners), but also a platform for experienced people to join and stay on. In my eyes, this is something Beaxy Exchange will solve.
Their ambition is quite high, and their raise compared their ambition is quite small. Next to that their exchange is almost live, which means an immediate use case for your investment in the $BXY token including liquidity and volume. For me this is a no-brainer, sure there is a lot of competition, but there is room for multiple exchanges to succeed.
The history of crypto exchanges who held a token sale is quite interesting as well. Exchange investments show an average 900% return, topping all other categories.
Regarding investing, I never give any advise and I never will. Do your own research and make your own decisions. Of course, I will tell you why I like Beaxy Exchange myself:
- A project that can help with mass adoption in crypto and help get the people on board that aren’t convinced
- Exclusive partnership with OneMarketData
- Initial estimated market cap of $ 4.5 million (100M tokens x highest sale price $ 0,045)
- Lots of advantages over its competitors (transactions scale infinitely, no down time and 26+ order types)
- All-in-one exchange (Crypto and FIAT)
- High standard of security
- Lifetime Beaxy Referral Program (10%)
- Beaxy Loyalty Rewards Program / Staking Program (maximum of 25% of Beaxy Exchange trading fees)
- Great use cases of the $BXY token
- Exchange going live in June of 2019
- Build by traders for traders
- Over 25 FTE and 25 part-time employees
- Only raised $ 3 million USD so far, with a fair soft cap of $ 4.2 million and a fair hard cap of $ 19 million (Update 6 May, $ 8 Million raised)
- 60,000 registered users pre-launch (15,000 KYC)
- Amazing and active community on Discord
Before you start reading this review, be sure to register yourself for Beaxy Exchange over here and do the KYC. If you need any help with registering and doing KYC, @ILikeCharting made a tutorial video, which you can find over here.
It’s important to always do your own research, I am happy to give you the tools:
- Link to Register yourself on Beaxy (Gets 90 days trading without fees)
- Technical Whitepaper
- OneTick Whitepaper
- Interview with Artak Hamazaspyan — Co-Founder and CEO of Beaxy
That’s it for now. All the best to everyone!
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Khilone is an investor and advisor of Beaxy Exchange.
The material contained in this article is not to be regarded as an recommendation to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information on this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making any investment decisions.