Q2 2020 Transparency Report

Released on

Jul 1, 2020


We made significant changes to our business at TenX during the first half of the year. The start of 2020 saw us re-launching the TenX Visa Card in Europe together with a brand new Buy Bitcoin feature. Since then we have, among other updates, added PAY Token to the wallet, enabled card support for Litecoin, completed the rollout of the new app design, and introduced our latest product, the TenX Virtual Visa Card.

On the marketing front, we started our first mass digital marketing across Europe and Asia-Pacific, re-launched a brand new simplified website, and stepped up our Search Engine Optimisation (SEO), App Store Optimisation (ASO), and content strategy to appeal to users across the crypto spectrum. Our marketing campaigns have proved effective, growing our user base by 400% in Q2 as compared to the previous quarter.

With that said, the first half of 2020 has not been without its setbacks: Just a few days ago, we had to inform our community that our card program had been disrupted, following an imposition of requirements on Wirecard UK by the Financial Conduct Authorities to cease their activities. Three days later on June 30, we were glad to be able to provide a positive update: the TenX Visa Card and related services have been re-enabled. We continue to monitor the developing situation closely and strive to provide service continuity, and will keep you updated of any changes.

In spite of the challenges that come with being in this industry, we firmly believe in the future of financial liberation and inclusion. To make it a reality, we must keep moving forward as a company, fully committed to our mission of transitioning the world from old money to programmable money by providing global financial services built on top of crypto and decentralized finance.

FeaturesQ2 2020

Aligning TenX with the Future Needs of Our Industry

We are happy to begin the transparency report by announcing that the restructuring of the TenX Group has been finalized in Q2 2020. TenX is now fully owned by employees and we no longer have external shareholders, allowing us complete agency to set directional focus.

The new structure has allowed us to revisit our company direction and strategic setup, making sure that all aspects of the business—the company, tokens, and ecosystem—are aligned with our long term vision of a future of programmable money by the people and for the people.

A Synergic Relationship: PAY & TENX Tokens

In 2017, we raised funds for the PAY Token as a single token that would encapsulate both market liquidity as well as the economic upside of rewards for token holders. Due to the changing legislative and regulatory landscape, it became clear in 2018 that it was not feasible to both provide rewards and allow a token to retain global liquidity at the same time.

In order to uphold our commitment to both the promises of liquidity and rewards, we navigated the issue by separating the two into what you see today as the PAY Token and the TENX Token.

The TENX Tokens have been issued against the PAY Tokens on a 1:1 basis, amounting to a total of 205,218,256 TENX Tokens. The PAY Token holders receive their TENX Tokens after they have gone through a Token Claim process, which opened to the public on 25 March 2019. The first distribution of TENX Tokens took place on 13 June 2019, when 37 million TENX Tokens were claimed by and distributed to an estimated 4,400+ addresses held by 4,000 unique and verified users and counting. Eligible token holders who have not completed their TENX Token claim can still do so from the TENX Token Webapp.

Today, the TENX Token provides rewards to all eligible holders on a quarterly basis as determined by the TenX Board of Directors, with the amount depending on the financial performance of the company in the previous quarter, such as revenue, financial position, cash flow, capital needs, general business condition, and other relevant factors.

At the same time, the PAY Token continues to retain liquidity in its ability to be traded on various exchanges. The PAY Token is our preferred currency and we buy it on the open market to fulfill our quarterly rewards. We are in the process of completing its transition into a decentralized and community-owned cryptocurrency that is fully usable through the TenX ecosystem.

PAY Token As a Currency

In line with the transitions we have made to the company in the last quarter, we have also decided to finalize the changes of the PAY Token into a decentralized cryptocurrency. Going forward, steps will be taken to decentralize PAY from TenX, with increased focus on improving PAY’s usability and liquidity. TenX will continue to buy PAY Tokens on the open market to fulfill our quarterly rewards on the TENX Token. In general, the PAY Token will be treated as our preferred currency in our ecosystem of services.

This step to finalize the transition of PAY into a decentralized cryptocurrency will allow us to add the PAY Token to our services faster, as we previously had to take a strict stance on insider trading and market manipulation, which slowed down the addition of the PAY Token to our core services. As PAY transitions into a decentralized currency, it will be a default option for all services that we launch in the future.

In a step towards our long term vision of a future of programmable money by the people and for the people, we aim to enable conversion and spendability of the listed PAY Token in the TenX Wallet. The PAY Token will be the preferred currency in our TenX ecosystem, on top of being the currency of choice for the TENX Token Rewards.

Rewards on the TENX Tokens

On 1 July 2020, 400,000 PAY Tokens will be distributed to the TENX Token smart contract as rewards for the TENX Token holders for the quarter of Q3 2020.

Out of these, 284,385 PAY Tokens will go towards TENX Tokens that belong to the public. 115,615 PAY Tokens will go towards TENX Tokens that are held by TenX in reserve.

As per our commitment to buying PAY Tokens from the open market for the purpose of rewards, all 400,000 PAY Tokens were purchased on the open market.

Q3 TENX Token Rewards in PAY Tokens

The Importance of Cross-Blockchain Interoperability

One of the biggest problems in our industry today is, ironically, centralization. We are concerned about the centralization of power in exchanges who have become gatekeepers to the industry. Every one of us is at the mercy of the ‘big guys’, so to speak. This is in direct conflict with an open and accessible crypto industry where users can freely choose not only which digital assets they want to own, but even more importantly, which services they want to use and how they want to interact with this fast-growing ecosystem of crypto services.

While the centralization of exchanges for fiat-to-crypto exchanges comes naturally through the high barriers to entry due to strict regulation, the inability to go from one blockchain to another is entirely technical in nature. This inability has led to a huge amount of additional centralization around big exchanges facilitating the trading of different blockchain currencies and tokens. In turn, these gatekeepers are charging huge fees for newcomers (such as listing fees as an example), and in general, do not keep up with the newest trends of our industry.

The lack of interoperability has also led to increased tribalism (often called “Maximalism” in our industry) and while we are strong believers in competition between blockchains, crypto assets, and services, we do not believe that we should rely on huge centralized companies to pick winners. Instead, we believe that users should have the power to decide.

To solve the problem of blockchain interoperability, we started investing in the COMIT protocol in 2017. We are proud to say that CoBloX research is one of the most cutting edge cross-blockchain research available today. Today’s COMIT protocol is built with basic Atomic Swaps for cross-chain trading and is available as Proof-of-Concept (PoC) for anyone to use.

The open-source COMIT protocol facilitates trustless cross-blockchain applications and is available to the public under the GPLv3 open-source license. Current COMIT research is about layer 2 scaling solutions as well as the attempt to standardize cross-chain building blocks by using ECDSA-based Scriptless Scripts, to both reduce transaction costs and also simplify the life of cross-blockchain developers.

With this in mind, our vision for COMIT goes well beyond TenX. We see COMIT as a truly decentralizing force in our industry that will not only bring massive opportunity through direct productization and monetization within TenX: More importantly, the general availability of a truly open and non-constraint cross-blockchain protocol will disrupt the monopolistic power structures that we have today. It will level the playing field for startups and empower even individual developers who will be able to freely create products and bring to the market an unimaginably wider variety of services built on top of blockchain and cryptocurrency. Users will be fully in control and never have to relinquish that control even when switching between services on different blockchains.

COMIT Foundation Non-Profit Organisation

To this end, we are in the process of setting up the COMIT Foundation Non-Profit Organisation. The purpose of this foundation is to guarantee the longevity of the COMIT protocol, as inspired by the Linux Foundation.

CoBloX will be a standalone team directly funded by the COMIT Foundation. Research grant programs for further independent research are in planning, and the initial funding for the COMIT Foundation Non-Profit Organisation will come from TenX.

Productizing COMIT

At TenX, we believe in the open choice of crypto services and assets for our users. Full integration of the COMIT protocol into our TenX Wallet will allow us to give our users access to practically any blockchain asset on any blockchain, and subsequently, easy access to crypto services that are currently distributed on multiple different blockchains.

While the research at CoBloX is progressing at a fast pace, we are taking a very diligent approach to making sure that the current proof-of-concept protocol is safe and secure before launching it to a wider audience. It is currently available to a technical audience (see documentation) and our next steps are to improve ease of use and its subsequent integration into our wallet.

Leadership Change

Our industry is maturing and TenX is growing into a well-established business. At the same time, the world is undergoing dramatic changes both socially and economically. We believe that these changes will bring hundreds of millions of new users into our industry. TenX’s strategy is to position ourselves with one leg solidly in the crypto industry and the other leg being a fully regulated financial institution. This strategy is bearing fruit and will allow us to uniquely cater to these new users who are looking for safe and secure ways of using crypto.

We are committed to taking TenX to the next level for the remaining half of the year. To ensure that we are putting our team’s combined expertise to the best use, we have reviewed our Executive Team structure and are excited to end this Q2 2020 Transparency Report by sharing the leadership change with you.

Claude Eguienta will be taking on the role of Chief Executive Officer (CEO) at TenX. Toby Hoenisch, who has been Co-Founder and CEO since the founding of the company in 2015, will lead our financial operations as Chief Financial Officer (CFO). He also maintains his role as the Chairman of the Executive Board.

This leadership change will allow both Toby and Claude to take on positions that best fit their respective capabilities: Toby’s expertise lies with the financial and crypto-specific aspects of the business, and Claude brings with him a wealth of experience deriving not only from the crypto industry but also from running a company that has attained licenses in multiple countries.


The last month marked the fifth anniversary of the founding of TenX, and although we could not hold a meetup to meet with you due to the global pandemic, we want to thank every single one of our community members who have continued to support us through challenging and even disappointing times.

As you would know by now, our industry is not one that is direct nor clearcut, so it certainly isn’t one for the weak-hearted. On behalf of all of us at TenX, thank you for being with us on this journey to financial liberation and inclusion.

— Toby Hoenisch, Co-Founder, Chairman, and CFO