Beaxy: Beauty or Beast??

This article was first released to the CryptoBirb Exclusive Moon Club. For more information, visit https://discord.gg/kUpraEH

There is plenty of competition among exchanges for trading volume, and thankfully, this directly benefits the consumer. From the days of Mt. Gox, (RIP), to the bye-gone era of Bittrex listing hype, and finally, to the impressive malleability of CZ at Binance, there have been plenty of iterations of the crypto exchange ideal. Personally, I have been most impressed with the wiley hatter at Binance. He has always seemed to be 3 steps ahead of the competition, and has demonstrated that with ambition, acumen, and vision, a properly equipped crypto enthusiast can build an empire in seemingly no time at all. His, of course, is the fairy tale version of the story, but there are MANY of the cautionary variety. B2BX has long exhibited “questionable” trading volume metrics that generously pad their numbers, and COSS aggressively courted users only to frustrate them with a buggy interface and rollout delays. Obviously, the exchange market balance is a tricky one. An exchange must properly incentivize users in order to lure them from their existing marketplace, and then DELIVER on promises. Furthermore, if an exchange does not attract enough trading volume to generate meaningful liquidity, it may as well plant a garden in the desert without irrigation, (not a good look).

Now let’s take a moment to identify the elephant in the room. In recent days, Beaxy has been embroiled in flame of red hot Crypto-Twitter fury. In short, there are more than a few voices crying foul over Beaxy’s aggressive ambassador referral program wherein they have aligned with a number of social media influencers by way of direct payments, or deep referral bonuses to market the exchange. Some say it is dishonest, or a shameless cash grab, and Beaxy issued a statement on the matter here. As with any meaningfully disruptive venture, there will be hiccups along the way, but I would be much more suspect of any project were there none. Those screaming for blood may with time be proven to be correct, conversely, it may be a simple testament to Beaxy’s understanding of the importance of launching their exchange with proper trading volume, and aggressively leveraging the power of the social media marketplace to get a head start. Either way, it’s easy for CT to get salty, especially when so many have been burned by the bear market. The bottom line is that it is simply too soon to cry for heads when the exchange won’t properly launch until Q1 of 2019. Moreover, shilling referral links for an exchange isn’t exactly a capital crime. Even if a participant is ignorant, or misinformed, the worst it will cost them is time, as of course, opening an account on the exchange is fee-free, (as are deposits and withdrawals). More on this matter later. Now let’s talk a little about who Beaxy is, and what they purport to bring to the table.

In addition to the run of the mill offerings we’ve come to expect from exchanges, here are some of the ways Beaxy looks to distinguish itself in the crowd.

• Beaxy will offer instant deposit of fiat currencies. Depending on the user’s portfolio value on the exchange, the user will be eligible for instant deposits of an amount of fiat currency as determined by Beaxy’s risk management team. Immediately after the instant deposit is initiated, the user’s withdrawal functionality will be frozen for double that amount — minimizing risk. (Really looking forward to not having to onboard my FIAT through the greedy fingers of Coinbase..)
• Transactions scale infinitely off of trading pairs. One pair — 225,000 tx/s… 100 pairs = 22.5 M tx/s. (blzing fast when compared to other exchanges, although, like everything else, for this to really shine, you need actual trading volume.)
• Security — Hot and cold wallets are used to secure assets and cold wallets are stored in diverse geographical locations. Whitelisting process makes phishing nearly impossible for BXY users.
• Beaxy’s Mobile Application (IOS/Android) will offer key features including price alerts to track cryptocurrencies like Bitcoin, Ethereum, and more, as well as real-time notifications (to alert you towards events like an order filling on the exchange.
• IP Address Whitelisting adds an extra layer of protection against phishing
• Multiple wallets per coin/token on the exchange allowing for low, medium, and high risk portfolios.

Upper Deck Advantages (self-reported)

• 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, (detailed above, but worth reiterating).
• 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 wanted a high performance analytics and data management platform to power their exchange matching engine. OneMarketData and their OneTick system allows Beaxy to execute trades and manage wallet transactions in a low-latency and fault-tolerant way. “We wanted to increase the sophistication level of our analysis and approach. OneTick enabled us to deliver a premiere exchange platform, the likes of which the cryptocurrency market has not yet seen.” — Artak Hamazaspyan, Beaxy’s Co-founder and CEO.
• 24/7 customer support, including live chat.
• Smart features for investors which include: detailed graphs, portfolio management tools, and price alerts.
• The ability for clients to create more than one wallet per currency, customizable according to investment needs. Transfers across wallets will incur no fees.
• The option to purchase a monthly package that will remove all trading fees.

Function of BXY, (including the staking, referral, and loyalty programs):

Like Binance with BNB, Beaxy offers the option to pay for trading fees using their native token, BXY, for a 50% discount in trading fees. Where things get a little more interesting is their staking program that allows holders to take advantage of additional discounts by locking their BXY tokens on the exchange for a set period of time.

Their site reports it to work like this:

1. You decide how many BXY tokens you want to lock
2. You set the period for how long you want to lock them for (minimum one month)
3. You receive an additional discount in trading fees until they unlock

There are 5 different tiers for User Account Status as follows:

Standard User — Default tier when registering for Beaxy. No staking.

Silver Account — Earned by staking 50,000 BXY. Yields a 10% discount on trading fees.

Gold Account — Earned by staking 150,000 BXY. Yields a 15% discount on trading fees.

Platinum Account — Earned by staking 500,000 BXY. Yields a 20% discount on trading fees.

Diamond Account — Earned by staking 1,000,000 BXY. Yields a 25% discount on trading fees.

Beaxy smartly leverages the utility of the BXY token with its Referral Program: If you refer a friend, you will receive 10% of their transaction fees for the lifetime of their account. (NO WONDER you see those referral links a flying!!). Anyone who joins via a referral code will be granted a Platinum level account (20% discount on trading fees) for a 2 month period. (No wonder people would actually use those referral codes!!)

Loyalty Reward Program: Users can qualify to receive a proportionate share of up to 25% of the total monthly transaction fees collected by the Beaxy Exchange by converting BXY to PLUS and staking said token for a minimum of one month. This is great, right? I can finally rent that Lambo I’ve never really wanted! Not so tacky-Lambo fast.. Due to regulatory uncertainty, PLUS, will not be available for United States citizens or other nations depending upon the regulation in the users’ country/jurisdiction. For those who do qualify, the breakdown goes like this:

• 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

The supply of the PLUS token will be equal to that of the BXY Token, however, the PLUS token will only be available through the Beaxy platform. The Beaxy Token (BXY) can be exchanged for the PLUS Token at a 1:1 rate, and will remain locked in as PLUS tokens for a period of time, set by the user.

Future Roadmap

• Over-the-Counter trading will be made available for institutional investors that wish to purchase large sums of cryptocurrencies without causing price fluctuations. There will be a minimum order of $1 MM.
• Plans to host ICOs on the Beaxy platform. Beaxy is making significant investments into KYC (Know Your Customer) process which will be very helpful for ICO’s looking to jump start their project.
• Developers will be able to offer their own add-on features in the App Store. In addition to features developed by the Beaxy team, third-party developers will be allowed to submit their own applications and offer them to users on the Beaxy Exchange. A third- party developer will receive 80% of the revenue generated from users who purchase the developers’ apps (subject to the terms of this white paper developers may be paid out in BXY tokens). Developers will be able to offer their apps for free, via a one-time purchase, or through a recurring payment model. (All presumably payable in BXY tokens)
• The exchange will implement a tax compliant document export feature to minimize the uncertainty with taxes and cryptocurrency.

Now I know what you are thinking, because so am I. This is a lot. Remember how I said earlier that the customers were the beneficiaries of a competitive exchange market? Well, if Beaxy delivers on all of the above promises/targets, we will benefit indeed, (especially those who pursue the referral rewards). The operative word here is of course, “if”. The team is neither flashy, nor flag worthy, but with an exchange Im not so worried about crypto pedigree. What I like is there seeming interest in abiding by compliance requirements, (reporting to meet PCI-DSS and ENISA compliance), and yes, their aggressive courting of users with incentives, because at the end of the day, volume is everything. Also, I like the add-on quality of the BXY token eco-system. In addition to the referral/rewards/loyalty programs, one can presume that any number of valuable products will become available through their native marketplace. I am personally envisioning a 3rd party application providing for bot-trading, or various smart trading, or portfolio matching options a-la 3Comma, but this is yet to be seen.

In closing, (and thanks for staying with me this long), Beaxy puts forth an ambitious roadmap and vision, and more power to them. If the referral program can net them users, they may very well have the volume to disrupt the hierarchy of the exchange powers that be. If they falter in their rollout of these products, however, any audience they gathered will quickly become frustrated and disperse, leaving a few salty-referral stalwarts wondering what could have been. I have no problem betting on the underdog, and will gladly jump in the referral frenzy. I hope the Beaxy team will have taken the time to learn from the false-starts and disqualifications of the efforts before them, and give us all an exchange worth referring our nearest and dearest. I hope their 24/7 help desk is available for their development efforts. Given the road ahead, they won’t have a second to lose.

Referral: https://beaxy.com/Registration?code=TENWV23JLZ

Site: https://beaxy.com/

Telegram: https://t.me/Beaxy

Twitter: https://twitter.com/BeaxyExchange

Facebook: https://www.facebook.com/beaxyexchange/

Reddit: https://www.reddit.com/r/BeaxyExchange/