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N.B: The following Coin Report on Beaxy is community-selected.
Welcome to the 28th Coin Report. In today’s report, I will be assessing the fundamental and technical strengths and weaknesses of Beaxy. This will be comprised of an analysis of a number of significant metrics, an evaluation of the project’s community and development and an overview of its price-history. The report will conclude with a grading out of 10. I hope you enjoy the read!
Prior to researching this report, I had heard of Beaxy to the extent that I knew it was a new exchange with a lot of support from those on Twitter. With regards to its token, BXY, I had no knowledge whatsoever; to me, Beaxy was simply one of the rare projects that hosted a token sale and had a working product, rather than simply the former. Thus, my preconceptions were somewhat positively skewed, insofar as that I could see that there was a growing, engaged community from the off and that there was indeed an exchange that had been launched. Beyond this, I knew nothing, and so when my Q3 community poll ended with Beaxy winning I was excited to get an opportunity to do some deeper research.
I hope this report will prove objective where it must be and fair on more subjective matters. For those who’d like to learn a little more about Beaxy prior to reading this report, here are some primary links:
Sector: Cryptocurrency Exchange
Beaxy was conceptualised late in 2017, though its token sale was not announced (nor its BitcoinTalk thread created) until Q1 2018, with its initial private token sale for BXY launching in June 2018. This was followed by other private sale rounds, and a final public sale round in February 2019 to accredited investors. In total, by May 2019, around $8mn had been raised, with BXY offered as a utility token in exchange.
Originally, 1bn BXY were planned to be created, with 600mn available for the token sale and 400mn for the team, advisors and development. However, following the token sale, these figures were cut in half, with the maximum supply now 500mn BXY, with 160mn BXY currently in circulation.
The Beaxy exchange was launched in June 2019, after 22,000 KYC-verified signups.
Given that the token has been tradeable for less than a single quarter, there is very little price-history available for BXY. In fact, this may be the newest token I have ever evaluated in these reports. Whilst I will take a crack at analysing what price-history there is in a later section, for now it will suffice to say that BXY formed its all-time high against Bitcoin at around 1400 satoshis (excluding the initial candle upon being listed) in June, and subsequently bled out to all-time lows at 400 satoshis. It has since bounced and is trading above 500 satoshis.
Unlike many projects in this space, the aims of Beaxy are clear and direct and it has one core product: a one-stop shop for cryptocurrency trading, with the aim of bringing the sophistication of traditional financial platforms to this space.
As stated in its whitepaper:
“Beaxy’s vision is to create a convenient, secure, all-in-one platform that helps to facilitate a world where cryptocurrencies are as accessible as fiat currencies. Beaxy’s user interface is designed to be a sleek and elegant experience for the user, externally simple, internally powerful and complex. It is Beaxy’s mission to make not just an exchange, but also provide an abundance of tools, information, and tutorials to assist all users – from novice to expert trader.”
I, for one, would love nothing more than to find an exchange that catered to all possible needs; that was liquid, sophisticated and all-encompassing. I am intrigued to see how Beaxy is faring in this regard, though accounting for the fact that it has only been live for a little over a month.
Let’s begin with some Metric Analysis:
Below are listed a number of important metrics, all of which are accurate as of 31st July 2019. For anyone reading this who has yet to read a Coin Report, it might be worth reading this section of the first report, where any potentially unfamiliar terms are explained. For any terms or metrics specific to this post, I will provide explanations besides the figures.
Price: $0.0522 (520 satoshis)
Circulating Supply: 159,766,607 BXY
Total Supply: 500,000,000 BXY
Exchange Volume: $71,730
Network Value: $8.344mn (830.79 BTC)
Maximum Supply: 500,000,000 BXY
% of Max. Supply Minted: 100%
Network Value at Max. Supply: $26.114mn
Exchange Volume-to-Network Value: 0.86%
Average Price (30-Day): $0.057
Average Exchange Volume (30-Day): $108,297
Average Network Value (30-Day): $9,116,697
Average Exchange Volume (30-Day)-to-Network Value: 1.19%
Volatility* (30-Day): -0.11927
Average Daily On-Chain Transactions (30-Day): 17.4
Average Daily Transactional Value** (30-Day): $103,310 (source)
NVT*** (30-Day): 80.77
% Price Change USD (30-Day): -55.4%
% Price Change USD (1-Year): N/A
USD All-Time High: $0.087
% From USD All-Time High: -36.8%
Premine % of Max. Supply: N/A
Premine Location: N/A
Liquidity (calculated as the sum of BTC in the buy-side with 10% of current price across all exchanges): 2.269 BTC
Liquidity-to-Network Value %: 0.27%
Supply Available on Exchanges: 5,967,046 BXY
% of Circulating Supply Available on Exchanges: 3.73%
*Volatility is calculated by taking the average price over the given time-period, calculating the difference between it and the highest price and it and the lowest price over that same time-period, and multiplying those figures together. The closer to 0, the less volatility during that period, and vice-versa. Read this for more on volatility.
**Transactional Value in $ is calculated by taking the daily transactional value in BXY and multiplying it by price.
***NVT is calculated by dividing the Network Value by the Average Daily Transactional Value. See here for more on NVT.
Supply Emission & Inflation:
Block Reward Schedule: N/A
Average Block Time: N/A
Current Block Height: N/A
Annual Supply Emission: 0
Annual Inflation Rate: 0%
Circulating Supply in 365 Days: N/A
Address Count: 324
Supply Held By Top 10 Addresses: 9.37%
Supply Held By Top 20 Addresses: 13.06%
Supply Held By Top 100 Addresses: 17.13%*
Inactive Address Count in Top 20 (30 Days of No Activity): 15*
*The top 2 richest addresses have been excluded from these calculations, as one is team-owned and one is the Beaxy exchange address.
Though there are less metrics to work through here than in a normal report, due to the lack of traditional staking or masternodes and the lack of supply emission, as is often the case with ICO tokens, there is still much of interest to evaluate, and I’d like to begin with one of the most important metrics for a utility token: NVT.
Using the past 30 days of data, I calculated that Beaxy was experiencing an average of 17.4 daily on-chain transactions, amounting to $103,310 of Average Daily Transactional Value at current prices. This would give BXY a 30-day NVT of 80.77, which is only marginally higher than that of Bitcoin. Of course, Bitcoin’s network is infinitely larger than Beaxy’s, but this is a good indicator of on-chain usage of the BXY token.
Moving on, I’d like to take a look at Volatility, which I calculated to be -0.11927 for the past 30 days; this is the 5th-highest of all previous reports, indicating that the token is likely still in price-discovery, though this can only be confirmed when we look at the chart in the Technical section. I generally like to see a figure below -0.05 if I suspect accumulation is underway, at least against USD.
Next up, we have the metrics relating to Liquidity:
Firstly, I calculated buy-side liquidity to be 2.269 BTC within 10% of current prices, which equates to 0.27% of Beaxy’s Network Value. This is the joint 8th-highest figure recorded, which places BXY in the middle of the pack. Considering the token has only been trading for several weeks and is only on its native exchange (which also has only been live for several weeks), this isn’t as weak as I’d have expected.
As for sell-side liquidity, I found that 5.967mn BXY was available for purchase in the orderbooks, equating to 3.73% of the circulating supply. This is the 4th-highest figure recorded amongst previous reports, suggesting that there is relatively low desire to hold the token at present, despite the multitude of benefits that I shall cover later. This is significant, as it is an early sign that the use-cases developed are not being adopted to the degree that the team may have hoped for and that, for now, the token remains largely speculative.
Moving onto volume, BXY has traded $71,730 in the past 24 hours, equating to 0.86% of its Network Value. Further, its Average Daily Exchange Volume has been $108,297 for the past 30 days, equating to 1.19% of its Average Network Value for the same period. These are respectable figures, as those who have read The Definitive Guide To Altcoin Selection will know; I like to see 1% or higher for the latter figure as an indication of speculative interest. Relative to projects from prior reports, this places Beaxy somewhere in the middle.
Now, let’s take a look at (the lack of) Supply Emission:
Given that BXY was distributed via token sale, there is a maximum supply of 500mn BXY that is already in existence, thus there is effectively no supply emission beyond the release of vested tokens over the next several years. Thus, annual inflation is 0%; a speculator’s dream.
Finally, let’s take a look at Distribution:
Using the rich-list, I found that there are currently only 324 holders of BXY; given that there are 22,000+ KYC-verified users of the exchange, this is very disappointing.
Further, I found that the top 10 richest addresses control 9.37% of the supply; the top 20 control 13.06%; and the top 100 control 17.13%. However, this is excluding the 1st-and-2nd-richest addresses, which between them control 82.57% of the supply, with 340mn BXY in the top address and ~73mn BXY in the exchange address.
Regarding the activity of the top 20 addresses (discounting the top 2 – thus looking at addresses 2-22), I found that 15 were inactive over the past 30 days, and that all except 1 of the remaining 5 addresses are in distribution, having distributed 1.75mn BXY. The accumulating address has added 85k BXY to their position. This is not what I like to see as a speculator, as it does not suggest that the token is being bought up at current prices by larger holders.
That concludes this section. Onto the Beaxy Community:
There are two primary aspects of community analysis: social media presence and Bitcointalk threads. I’ll begin with the former before moving on to the latter.
Concerning social media presence, there are four main platforms to examine: Twitter, Facebook, Telegram and Discord.
Beaxy is present on all four platforms. To begin, let’s look at the various social metrics that I calculated from the Beaxy Twitter and Facebook accounts:
Twitter Followers: 23,097
Average Twitter Engagement: 0.67%
Facebook Likes: 17,464
Facebook Posts (30-Day): 7
Average Facebook Engagement: 0.12%
As usual, I will be using RivalIQ‘s social benchmark report for evaluation purposes.
Beaxy has a relatively large audience on Twitter of ~23k followers, which makes it the 4th-most followed account from all prior reports. To match this, Beaxy has very consistent engagement and seem committed to keeping their community updated with regular tweets. The average engagement rate is 0.67%, which is around the middle relative to other projects; however, many of the projects in prior reports have significantly less followers, which boosts their engagement rates, thus this is still rather promising. Relative to global benchmarks, this is 74.4x greater than the Media industry and 14x greater than the average across all industries.
Unlike the majority of cryptocurrency projects, it seems Beaxy has paid attention to Facebook as well as Twitter, with its audience of ~17k the 3rd-highest amongst previous reports, though its average engagement rate of 0.12% is significantly lower than that of its Twitter account. However, the commitment is commendable, although clearly the community on Facebook is not as engaged as it perhaps could be. Relative to global benchmarks, this is 133% greater than the average across all industries.
The Beaxy Discord has 6,103 members. Around 65 new members joined the group over the past week.
Where to begin? This is one of the most comprehensive Discord groups I’ve ever taken a look at. There’s a bloody Table of Contents, for fuck’s sake; organised is an understatement. All of this serves to ensure that new users can readily navigate not only the Discord but the project itself.
Why Beaxy provides the user with a concise breakdown of the numerous features and benefits of the Beaxy exchange, many of which will be mentioned in later sections, so I’ll refrain from covering them here. Suffice to say, there is plenty here that a trader might get excited about. Important Links contains all relevant resources and PR material, whilst FAQ covers a great number of the most pressing questions a user may have. Between these three channels, a potential new user would have plenty of material to form a fundamental opinion of the project.
The Company Updates menu contains several channels, each dedicated to a different aspect of project development. Announcements is updated at least once a week, with recent announcements including a marketing contest with a 50% referral bonus; a listings update that provided transparency on listing fees and costs, with voting to be enabled in the future; updates on the marketing plan, with efforts ramping up now that the exchange is stable (ad spend will be increasing to convert more users); a detailed blog post published with use-cases of the BXY and PLS tokens; and a comprehensive outlining of the accomplishments and future aims of the team.
System Announcements provides updates on the exchange itself, such as maintenance and platform changes. The latest platform update will include the membership program, 50% bonus referral program and market maker rebates. Beaxy Listings contains all of the coin listings thus far, with the most recent round having occurred in April. Progress Updates contains links to weekly Medium updates. Team has not been updated since May and Partner News contains links to news updates relating to the projects listed on the exchange (or to be listed).
General is comprised of near-constant discussion between members of the group, with recent discussion including imminent updates to the platform, the activation of PLS tokens and subsequent payouts, listing on CMC for the exchange itself, as well as other minor bugs and issues being resolved.
Overall, plenty to get stuck into as a potential new user. If I had to point out a weakness, it would be overall engagement is not as high as it perhaps should be given the size of the group.
The Beaxy Telegram has 9,059 members.
The group is largely defunct, with a notice stating that they have moved to Discord.
The Beaxy BitcoinTalk thread was created on February 9th, 2018, and has since generated 818 posts spanning 41 pages in 536 days. This equates to 1.53 posts per day, on average. However, in the past 90 days, the thread has had 69 posts via 33 individual posters, giving an average of 0.76 posts per day; a somewhat sharp decline in engagement.
The announcement itself is well-branded with a clean layout. All relevant links are provided at the top for ease-of-access. These are followed by an information-dense infographic with the history, purpose and vision of the team, and also depicts key features like the loyalty program; BXY ‘staking’ for discounted fees; 24/7 support; fiat deposits; the security process; sophisticated performance; a mobile app; OTC trading;
and an ICO launch platform.
We are told that 20% of trading fees are given to those holding BXY on exchange (though this is now out-dated, as we shall come to a little later), plus there are tiered discounts for locking BXY on exchange, up to 25%. In conjunction, there is a 50% discount for using BXY to pay for fees, compounding the fee discount to a maximum of 62.5%. Lastly, the referral program allows for referrer to earn 10% of referred user’s
fees. This announcement is in need of an update, as some details have changed since publication in February 2018.
Regarding the content of the thread, the past 90 days has seen discussion around the launch of the exchange, primarily, with some FUD around the delayed launch. Further to this, hackers succeeded in a breach but gained no data prior to launch. Deposits went live on June 8th, followed by live trading from June 18th, so the platform is only a few weeks old at this point. Plus (PLS) was introduced as a token to be used in the loyalty program for qualified holders of BXY and cannot be transferred out of exchange (more on this later).
And that concludes this section on the Beaxy Community.
Let’s take a look at the Development:
For the following Development analysis, I will be evaluating project leadership, the website, the roadmap, the whitepaper, the wallets and finally providing a general overview:
There is no information on the team to be found on the website. However, there are 37 employees on LinkedIn, and background information on the entire team can be found in the whitepaper.
There are 3 advisors listed in the whitepaper, with experience in business, finance and marketing. Regarding the core team, Artak Hamazaspyan, Mittal Patel, Narine Khachatryan and Marine Ghandilyan are the 4 co-founders, with experience in law, operations, marketing and development. The remaining team have experience in design, information systems, PR, customer support, engineering, marketing, data and software.
Overall, balanced and experienced.
Unlike with most reports, in this report I am looking at an exchange rather than the informational website pertaining to any given project. Thus, my evaluation will naturally not follow prior templates.
Firstly, the homepage is modern in its design and sleek, unlike many exchanges in this space, with key features displayed below the sign-up form. Having logged into the exchange and navigated to the markets, the first thing to note is that the Dark Mode setting is more visually appealing than Day Mode, which tends to be the case on all platforms. The various tools are well presented, with a clean order form in the top left, a TradingView integration centre-screen, a customisable orderbook to the right, and with trade history and open orders beneath these. Each tool can be made full screen and the TradingView integration allows for snapshots and a drawings toolbar, which isn’t the case with some integrations on other exchanges. Finally, a calculator icon in the navigation menu opens up a useful PnL tool. Clicking the ticker towards the right of the calculator opens up a menu featuring all available markets.
Overall, the navigation is smooth and fast, as I expected.
The one critical issue is volume, of which there is very little at present; total volume across all markets is around 6 BTC…
That said, the exchange is very new, but then again it does have 22,000+ sign-ups with verified KYC, so I would have expected more. If trade volumes begin to pick up, however, this is a very smooth trading experience and far better than many of the larger exchanges in the space.
There is no dedicated, up-to-date roadmap; however, an earlier roadmap is available within the whitepaper and is discussed in the section below.
The whitepaper is 30 pages in length, which is relatively concise. It is dated June 2018, thus likely somewhat out-dated, though this is a v3 document.
The abstract begins by stating that “Beaxy is an all-in-one exchange created by a group of professional coders & traders.” Following this, we find an Introduction that provides context on the crypto market, with the main problem facing traders being the fragmented nature of various services; Beaxy will seek to solve this under one roof. What we are told to expect is stock market-esque performance, with access to fiat deposits/withdrawals and sophisticated order types. The overall vision is to make the trading experience both seamless and secure, catering for all traders, independent of experience.
And Why Beaxy? We are told of their exclusive partnership with OneMarketData, where Beaxy will be the only crypto exchange utilising OneTick for an unparalleled trading engine. A list of Core Competencies is provided: fiat trading pairs; instant deposits of fiat; infinite transaction scaling (225k tx/s per pair); a mobile app; membership rewards and loyalty programs; reduced fees for token holders; multiple wallets per asset to allow for portfolio risk variance; 24/7 customer support; smart features for portfolio tracking; monthly subscription to remove trading fees; and native TradingView integration. In the future, OTC trading will be available to institutional investors above $1mn per order; as will an ICO platform with offerings vetted by Beaxy; an App Store for additional features; and tax compliant reports (this would be very useful indeed).
Regarding security, the user’s IP is checked twice to verify the login: pre-and-post email verification. If the IPs do not match, login is denied. Further, Beaxy will be subject to audits by third-party hackers to improve security procedures. The next section deals with Marketing, where an extensive plan is outlined, with social media being a key component of the marketing campaign to onboard users, utilising referrals and key features as drivers of adoption. Further to this, there will be extensive press and media, as well as influencer engagement, user re-targeting, giveaways, partnerships and token listings on the exchange.
In the Transparency section, we are told launch was scheduled for Q3 2018. However, the platform only went fully live in June 2019.
Regarding the native exchange token, there will be two available. The BXY token can be used to pay for fees, be staked for further fee discounts and be used to purchase additional sophisticated exchange features and apps in the future. BXY is distributed via a token sale, offering traders a 50% discount on fees and voting rights. The other token – PLS – is not tradeable but can be locked on the exchange to receive trading fees as rewards. It is a registered security token, and PLS locked for 1 month will receive a proportional share of 15% of fees collected; 1-6 months will receive 20%; and 6+ months will receive 25%.
Moving on, the following section concerns the Token Sale: we are told that the private sale begins June 15th, 2018, with original plans for a public sale from September, though this ended up with more private sale rounds and a final public sale for accredited investors in February 2019. The stated ICO price per BXY was $0.041, with the original maximum supply set to be 1bn BXY, with 600mn sold in the token sale. This was cut in half before token distribution, so investors owned proportionally greater percentages of the final maximum supply of 500mn BXY. Company shareholders were originally set to receive 150mn BXY (75mn post-cut); 100mn for advisors/contributors (50mn post-cut); and 150mn for the company reserve (75mn post-cut). There is a 2-year vesting period for team-held tokens. Regarding budget allocation, 10% of the company reserve will be spent on customer support, 35% on r&d, 25% on legal, 15% on marketing and 15% on operations. Further details are provided for these allocations.
There is a roadmap printed with the original launch of the exchange planned for Q3 2018, which ended up as Q2 2019. A mobile app, portfolio management, advance order types, fiat deposits and OTC trading are all yet to come.
We are then presented with the Beaxy partners, who are as follows: OneMarketData; Concent; SFL; Fornaro Law; The Crypto Fam; and IdentityMind. Following this, full information is provided on the core team and advisors.
Overall, concise and highly informative, though certainly out-dated.
The BXY token can be stored on any ERC-20 compatible wallet.
To conclude this section, I’d just like to summarise a few things concerning Beaxy and supplement my notes with findings from Medium articles and other miscellaneous material:
- The Beaxy YouTube channel has 175 subscribers, with 5,421 views in total, despite regularly uploading informative videos and tutorials; I like the consistency across social channels.
- Beaxy guarantee uptime during significant load, though this will only be proved if and when sufficient volume is traded on the exchange.
- There will be seamless, instant fiat deposits.
- 18 order types are available from day one. 26 will be available in the future. This is more than all competitors.
- Tax-ready trade reports will be available in a future update.
- The OneTick partnership is exclusive within the crypto space and facilitates 225k tx/s per pair, which is 10x faster than Binance.
- Regarding BXY use-cases, there is a 50% fee discount for life; tiered discounts for locking BXY on the exchange in addition to the 50%; there is a loyalty rewards program facilitated by two tokens – BXY and PLS; PLS is non-tradeable and is bought with BXY and locked, enabling users to get up to 25% of trading fees as a reward; and, lastly, there will be an App Store with verified applications paid for in BXY. PLS is not yet active, but will be tradeable on a 1:1 basis with BXY.
- There will be 24/7 customer support with live chat, and the team has 25 full-time employees and more than 25 contributors.
- Current features found on Beaxy that are not found on other cryptocurrency exchanges are the PnL calculator (though BitMex does have this for leveraged trading); multiple wallets per asset to allow for risk variance; an integrated Knowledge Base; and tax-ready reporting.
- The company is registered in Nevis with a HQ in Chicago.
- There have been 22,000+ sign-ups that have completed KYC so far.
- Beaxy utilise in-house market makers for liquidity.
- The company raised over $8m in their token sale.
And that concludes my fundamental analysis of Beaxy; let’s take a look at the chart:
Though there is very little price-history available, with BXY having only been listed in June, there is some structure here to be dissected.
Firstly, following listing, price peaked out at 1400 satoshis, from which it declined sharply and found support at 750 satoshis; a new range formed here, with price trading between 1115 satoshis and 850 satoshis for several weeks, before price again broke down and support became resistance at 750 satoshis.
Since then, price has bled out slowly, finding its all-time low at 400 satoshis last week. What is interesting, however, is that price falsely broke out above trendline resistance late in July, after which it found this all-time low; following this, price has bounced hard, turning market structure bullish on the 4H. If this breakout is real, price should hold above 500 satoshis as new support, eventually making a move back to support turned resistance at 750 satoshis. Only once this level is flipped would I be a buyer, though.
This report is now approaching 5,000 words, and it is time to draw it to a close.
My final grading for Beaxy is 7 out of 10.
Here, you can find my grading framework, for reference.
Lastly, here is a link to a Google Sheets file with any significant data from previous reports compiled for cross-comparative purposes. I will keep this updated as I continue to write these reports.
I hope this report has proved insightful and that you’ve enjoyed the read! Please do feel free to leave any questions in the Comments, and I’ll answer them as best I can.
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