Bitquence’s vision is to create a people-powered new economy services company that makes
the cryptocurrency market accessible and trustworthy to the average user, accelerating
adoption of blockchain technology and democratizing ownership of cryptocurrencies.
While this is a massive vision, Bitquence has an experienced and enthusiastic team of who are
ready to make this vision a reality. The Bitquence team brings together a unique collection of
experts across cryptocurrency, distributed computing systems, mobile technology, and
broad scale consumer app development that has built multiple award-winning applications
and collectively powered over $1 billion in mobile micro payments.
The Bitquence platform is designed to tackle specific problems in the world of
- Choosing between an ever-growing array of crypto currencies
- Understanding risk and quality across multiple coins and assets
- one-click diversification into multiple crypto assets
- A safe and secure mobile wallet that handles multiple keys
- Being able to easily transfer value across digital assets
The $4 Trillion Financial Services Industry
The S&P 500 in the United States is worth $20 trillion. 20% of the S&P 500 is made up of
financial services companies or $4 Trillion. For the cryptocurrency industry to go
mainstream, it will have to ultimately become more user friendly and enable a safe and
secure way to invest in cryptocurrencies and alt coins.
The Bitquence team has mapped out a multi-year approach to building a scale platform that
will tackle these problems in a way that builds a powerful new ecosystem. At the core of the
vision is the Bitquence token, which will power the services and enable a new digital liquidity
network that will make it safe, easy, secure and free to transfer value anywhere in the world.
Over the past several decades there have been a number of macroeconomic events that have
fundamentally changed the way that society operates. The Digital Revolution changed the
way we treat data and computation. We saw the rise of the modern internet in the dot.com
boom and more recently we’ve begun to experience the Internet of Things. Cryptocurrencies
and blockchain technology are now making way for the “Internet of Value” and Fintech
companies are paving the way to a decentralized, unencumbered financial future.
Cryptocurrencies have skyrocketed in recent years, rapidly reaching huge valuations.
The accessibility of some of these currencies depend on many factors, including private keys,
wallets and liquidity. So while digital assets such as PIVX offer eye-popping returns, it is also
extremely difficult and mystifying for even sophisticated participants, let alone the average
The market cap of these new generation of cryptocurrencies still pale in comparison to the
U.S. economy, let alone global markets. Valuations of the global stock markets are over $70
Trillion, dwarfing the total cryptocurrency market capitalization of $100 Billion at the time of
writing. There is massive room for expansion if more investment begins to flow into the
sector, safety and security can be strengthened, and useful services are built on the
disruptive blockchain technology.
Wall Street and big banks are beginning to take notice of the huge potential of the blockchain
and the latest cryptocurrency returns. While we welcome their participation, the
decentralized, trustless nature of the blockchain needs to be preserved. Cryptocurrency
represents a fundamental threat to the way that many financial institutions operate and it
would be foolish to think there won’t be resistance.
“Rather than justice for all, we are evolving into a system of justice for those who can afford it.
We have banks that are not only too big to fail, but too big to be held accountable.”
― Joseph E. Stiglitz
That’s why Bitquence aims to create a people-powered
cryptocurrency services company for the blockchain.
Bitquence’s Mission is to make the cryptocurrency market
accessible and trustworthy to the average user, accelerating
adoption of blockchain technology and democratizing
ownership of cryptocurrencies. This is a key part of the
philosophical mission established by Satoshi Nakamoto. By
allowing the average participant to easily purchase
cryptocurrency in pre-diversified baskets, participate in consensus quality and risk ratings
and potentially send value anywhere quickly and easily, Bitquence helps make the new
economy easy, safe and secure and accessible to everyone.
Bitquence is the first cryptocurrency services company to synthesize many of the needs of the
new economy. The Bitquence Universal Wallet will enable rapid diversification into multiple
digital assets quickly, easily and cheaply. This will pave the way for the Bitquence Digital
Liquidity Network, which will facilitate global digital payments instantly between any crypto
and fiat currency. While this is a massive vision, Bitquence has an experienced and
enthusiastic team of financial and mobile experts who are ready to make this vision a reality.
Bitquence’s vision is to:
● Make purchasing cryptocurrencies and digital assets as easy and safe as possible
● Enable community consensus on cryptocurrency risk and quality
● Launch a variety of diversified cryptocurrency investment baskets with low fees
making it simple and painless to buy in with crypto and fiat currencies.
● Enable a universal mobile Bitquence wallet to provide a safe and secure way to buy,
trade and hold a variety of cryptocurrencies.
● Create a Bitquence token to pay for platform services while creating overall liquidity
for the entire network
● Eventually integrate cryptocurrency payments with existing financial structures
through the Bitquence Digital Liquidity Network
We are going to bring the financial future to you.
Are you ready?
1. The Bitquence Platform
There are hundreds, if not thousands, of different wallets out there for all of the different
digital assets and managing lots of wallets for each of your currencies is difficult. Here at
Bitquence we wanted to create a platform that could provide a powerful single point of
interaction with the new economy. This Next-Generation Digital Wallet will be the backbone
for our asset management and cryptocurrency services platform. The universal wallet will
allow us to bulk transactions together in order to increase liquidity and keep costs down for
consumers. This infrastructure also allows us to create a universal mobile payment system
for users who wish to transact in any currency instantly breaking down barriers towards mass
adoption in the industry. In this section we will outline the pieces of the Bitquence Platform
that will make it the most user-friendly way of buying cryptocurrency on the market.
The Bitquence platform is created out of several core technology components:
● Wallet & Liquidity Layer: This includes a centralized wallet management system
which links to the Bitquence Liquidity Network, created by the Bitquence token itself.
This links programmatically via API into major cryptocurrency exchanges. The
Liquidity Network will be decentralized.
● Bitquence Platform Layer: This includes a Community Consensus component for
rating individual tokens and cryptocurrencies on technical merit and quality. Ratings
will be assigned on the basis of ownership of those currencies within the Bitquence
platform. This will link to a variety of Dynamic Asset Allocations, eg the “coin baskets”
that users can buy and hold within the Bitquence platform.
● Cold Storage: The system will randomly synchronize with cold storage, which will be
in a secure location that is not physically attached to the internet.
The Bitquence Platform
1.1 Dynamic Asset Allocations
Bitquence Dynamic Allocations enable users to secure funds through a variety of
cryptocurrency assets. The value of your allocations will track precisely to the underlying
assets. Bitquence will have a range of default allocations, and users can adjust the
percentage of the allocations to their preference, assuming availability of the underlying
When you place funds into a Bitquence Allocation, you will be given an
estimated cost and estimated amount of underlying assets securing your
investment. All investments are secured 1:1 by underlying assets.
Allocations will be comprised entirely of liquid currencies allowing anyone
to transfer value at any time. Buy and sell orders will be pooled and
executed once a day to lower transaction costs. Bitquence is not a
day-trading site, but rather an easy way to place funds across multiple
currencies. The benefits to Bitquence Allocations are as follows:
Risk Diversification: Spread funds across dozens of crypto currencies or tokens,
making it less risky than purchasing an individual currency.
Accessibility: Cryptocurrencies become easier to purchase, enabling average
participant and consumers to experience the benefits, and raising liquidity for all
Community Expertise: Bitquence users can rate individual currencies on quality
(technology and service concept) and risk. These ratings will aggregate into a
Allocation, so consumers can easily understand the relative risk and quality.
Low Cost: Bitquence allocations will have low transaction and management fees,
ensuring that the power and freedom of crypto currency remains intact as “wall
street” and professional venture participants start to enter the market.
Time Savings: Bitquence allocations will enable people to simultaneously invest
in multiple currencies instead of having to own and manage multiple wallets.
Bitquence will charge a very small expense ratio and fixed transaction fees on Index
Allocations. The expense ratio is a fee that is only levied on increases in value using
high-water mark rules that will be under 1%.
We imagine Bitquence Allocations to be like “coin collections” or “coin baskets” - diversified
baskets of new economy tokens that can be easily purchased, held and reallocated as
1 http://www.investopedia.com/terms/h/highwatermark.asp - High-Water Mark rules ensure that fees are paid
out fairly and only in the event of continuously increasing value
1.2 Managed Allocations and Transparency
Users can modify Allocations to decide on the
percentage of specific assets. When you modify a
Bitquence Allocation it becomes a Managed
Allocation. Risk ratings for managed allocations
are determined by community consensus. Users
will be able to vote on a individual coin’s
riskiness as well as its technical quality. This will
enable users to quickly understand each
individual coin’s risk and perceived technology
quality so you can quickly get an estimate of how
risky your selected or customized coin allocation
is. Fee structures will be the same as those in
Bitquence Index Allocations and will also be
charged based on high-water mark rules.
We strive to maintain an extremely transparent
system that is kept accountable by a community
of users. The facts and performance of all
allocations will be 100% transparent, and easily
summarized to be quickly understood. The goal
is to mirror the simplicity of professionally
packaged financial instruments, while maintaining the democracy, community, freedom and
security of crypto-currencies.
“If you can’t explain it simply, you don’t understand it well enough” - Anonymous
1.3 Digital Liquidity Network
The Bitquence Digital Liquidity Network is
the supporting architecture that enables the
many capabilities that the Bitquence
Universal Wallet has. The Bitquence Digital
Liquidity Network will use Bitquence Tokens
(BQX) to transfer and transform value from
any source and into any destination. The
Liquidity Network operates by rapidly
pairing networks of Bitquence users performing different bulk transactions together to
transform value on top of underlying assets. Each of Bitquence’s features such as Automatic
Gas Conversion or Dynamic Asset Allocations will deepen the liquidity of the Bitquence Token
and make the Liquidity Network more robust. By using this infrastructure, there is no
counterparty risk and no leverage. Everything in the liquidity network is backed 1:1 with
underlying cryptocurrency assets ensuring that Bitquence will always be solvent mitigating
risks to users.
1.4 Cold Storage and Security
Coinbase keeps 98% of their funds in cold storage. With the Bitquence
Digital Liquidity Network, assets are liquid and transferrable, but can
be kept in cold storage until withdrawal, similar to a bank. Bitquence
will distribute paper and hardware wallets at geographically
distributed safety deposit boxes around the world to secure assets
safely and securely. Cold storage will sync at random intervals with hot
storage wallets so users can deposit and withdraw freely. Cold Storage will be built into all
Bitquence Universal Wallets so that everyone can enjoy security and peace of mind knowing
their assets are safe.
1.5 Next-Generation Digital Wallet
The Bitquence Universal Wallet offers users a variety of features not afforded by other
wallets, leveraging the unique capabilities of the Bitquence platform.
2 The Bitquence Token
The Bitquence Token (BQX) is is essential to the functioning of the
Bitquence platform. In order to use Bitquence allocations and cold
storage, users pay a token fee, which will represent a nominal
portion of funds, similar to “dust”. BQX tokens can also be used to
rebalance individual portfolios. In other words, liquidity generated
by BQX will be used to enable users to shift allocations between
various currencies quickly and easily. BQX tokens can be used as
“gas” for transactions and storage on the Bitquence platform which will be paid instead of
traditional management and service fees.
In short BQX Tokens will :
● Be the payment mechanism for using the Bitquence platform
● Pay for Bitquence cold storage services
● Enable liquidity to help with changes in user asset allocations
In the future, Bitquence Tokens may be used to send value, similar to PayPal. There are
technical and legal hurdles to make this vision a reality (see Legal Hurdles below)
2.1 Token Sale and Distribution
Bitquence will launch a Token Sale to initially distribute up to 30% of BQX in order to fund
development of the platform and expand service offerings. To encourage liquidity and
demand, service transaction discounts will be given to bulk holders of BQX tokens. In other
words, users who hold BQX tokens will enjoy cheaper cold storage and service transaction
fees. 40% of tokens will be reserved to establish liquidity for the Bitquence Liquidity Network.
There will be 1 billion Bitquence tokens minted, which will represent all the global supply.
“Price is what you pay. Value is what you get”
- Warren Buffett
We wish to be as transparent as possible about token ownership and our development
roadmap to dispel concerns about vaporware or
“pump and dump” scams. We believe in the power
of cryptocurrencies and are committed to building
high-quality services around that philosophy. Any
tokens that are not sold during the token sale will
be burned, meaning the community gets to decide
how much this project is worth.
Pricing is as follows:
The left shows the price at the amount of ETH committed. The price you get depends on how
early you buy in. There is a soft cap of 40,000 ETH after which the token sale will enter a 72
hour “last chance” period which has a hard cap of 150,000 ETH. The total supply of the tokens
will be 1 Billion if all 150,000 ETH of tokens are sold. If 40,000 ETH worth of tokens are sold,
then the remaining 110,000 ETH worth of tokens will be burned protecting token sale
participants and the total supply will be less than 1 Billion.
2.2 Proof of Stake Risk Profiles
All Bitquence Token Holders will be able to participate in consensus risk profiles. Users with
active BQX balances on the Bitquence Platform will be able to “stake” their coins on different
risk profiles with weighted voting based on their stake. Bitquence token holders are
motivated to vote truthfully as they are rewarded based on the accuracy of the vote. This
means that experienced users will be rewarded for their knowledge and earn BQX payouts
just for using the platform and staking tokens. This also helps newer users gain familiarity to
the risks and qualities of different coins, helping drive trust and adoption in the market. Users
will be able to see the number of tokens staked against outcomes showing the strength of the
market’s sentiment against events in the crypto market. Utilizing Consensus Risk Profiles,
every allocation will be able to receive a customized quality and risk profile so even new users
will have access to state-of-the art investment analysis.
2.3 Value and Liquidity Network
Tokens will be issued on the Ethereum Network using ERC20 standards so that they can
leverage the full security and capability of an established blockchain. By utilizing the
Ethereum network it will offer BQX easy exchange integration, enhanced liquidity and the
ability to leverage existing technical infrastructure that many users are already familiar with.
As the token will be the backbone of the Liquidity Network, Bitquence will use all the
remaining unsold tokens to stake the Liquidity Network and make markets for the benefit of
consumers. All initial counterparty risk will be absorbed by the Bitquence Tokens used to
stake the network which will encourage the Liquidity Network’s use and adoption as a
2.4 Long-Term Roadmap
Our ultimate vision and goal is to make BQX a payments standard for services all around the
world. This will take years, but we believe the roadmap outlined above is a valid and solid
strategy to get there while being useful to the community along the way. Early adopters of
the token will gain the benefits of the Bitquence platform at very low cost. Once the
Bitquence Digital Liquidity Network has been established, the BQX token will be transferrable
and liquid into any supported crypto or fiat currency. This will make sending a wide variety of
crypto currencies as easy as sending Paypal or Venmo via email or text message. This will
open the door to mass adoption for Universal Mobile Payments using BQX for any merchant
at extremely low integration, infrastructure and transactional costs. Eventually, the roadmap
includes rapid asset allocation to occur through the Bitquence Digital Liquidity Network
and/or partner networks, making rapid asset allocation as cost effective, fast and reliable as
Stage 1: Proof of Stake Risk Profiles
The first thing we hope to release is the proof of stake risk profiles. Users will be able to stake
coins against the outcomes of different cryptocurrencies and get rewarded based on
accuracy. We will start with a µBQX release and when we are ready allow deposits of BQX.
This allows us to have a test environment to iron out any issues before they affect anyone and
begin building data.
Stage 2: Baskets, Diversification and Education
The second phase of development is creating the basket, diversification and education
components of the platform. Users should be able to evaluate tokens using proof of stake
data, news and other sources then create custom baskets to diversify across. We hope to be a
one-stop research and diversification platform making it really easy to start interacting with
Stage 3: Fiat Integration
To begin accepting fiat, it will require crossing many legal and regulatory hurdles. We will
have to comply with AML/KYC and ensure the platform is highly secure before allowing any
fiat in or out. We anticipate that this will require a great deal of legal work which is why we are
pushing it out in our timeline.
Stage 4: Digital Liquidity Network
After completing baskets, diversification and fiat integration, we can begin to move towards
the ultimate goal of Bitquence which is a massive digital liquidity network enabling the
transfer of value across different assets quickly and easily. This will require establishing BQX
to various asset trading pairs and creating algorithms to match buyers and sellers rapidly in
real time. This is a lofty goal, but something we hope to achieve in due time.
2.5 Legal Considerations
Bitquence presents legal hurdles, especially in the United States. For this reason, the Token
Sale will not be available to U.S. participants, and Bitquence will require specialized legal
counsel in order to become a reality. As such, it is anticipated that a portion of the funds
raised in the token sale will go towards legal counsel and framework, especially in markets
such as the United States.
Legal considerations include:
● Compliance with Know Your Customer (KYC) regulations and requirements
● Implementation of Anti-Money Laundering (AML) regulations and requirements
For example, on March 2013, the U.S. Department of Treasury Financial Crimes Enforcement
Network (“FinCEN”) issued specific guidelines regarding administration and exchange of
virtual currencies. A key paragraph:
This guidance refers to the participants in generic virtual currency arrangements,
using the terms “user,” “exchanger,” and “administrator.” A “user” is a person that
obtains virtual currency to purchase goods or services. An “exchanger” is a person
engaged as a business in the exchange of virtual currency for real currency, funds, or
other virtual currency. An “administrator” is a person engaged as a business in
issuing (putting into circulation) a virtual currency, and who has the authority to
redeem (to withdraw from circulation) such virtual currency.
On May 2015, the U.S. Department of Justice entered into a settlement agreement with Ripple
Labs regarding their policies, procedures and training and resulting in civil penalties and
Bitquence management is committed to maximizing user value of the Bitquence platform
while remaining fully in compliance with local laws and regulations. As such, Bitquence will
determine on a market-by-market (and if launched in the U.S. state-by-state) basis the
necessary level of compliance with local laws, and the feasibility of local market-based
launches. This may impact the role of the Bitquence platform and token, including:
● Support of fiat currencies
● Capacity to transfer Bitquence
● The maximum amount of fiat or cryptocurrencies that can be deposited into
● Bitquence user disclosure requirements
These issues should be considered by users considering advanced purchase of Bitquence
tokens. The fundamental role of the Bitquence token is to act as “gas” for the Bitquence
platform and enable asset allocation rebalancing between various cryptocurrencies.
However, the Bitquence service may not be available in certain countries - for example, it may
be years before the Bitquence service is launched in the United States. (Note that the
Bitquence Token Sale is not available for U.S. participants) Prospective participants in the
Bitquence token sale or downstream token purchases should consider these facts prior to
purchasing any Bitquence tokens.
3 Looking to the Future
The Bitquence application is designed to be developed and deployed as quickly as possible.
Initially Bitquence will run on cryptocurrencies and will be thoroughly scale-tested prior to
the integration of any fiat currency gateways. The core priorities of the application are::
Security: Rock solid cold storage technology and protocols.
Scalability: The capacity to handle scale transactions.
Accessibility: Making the platform fast, easy and mobile-friendly
Decentralization: Making the platform decentralized eliminating any single point of failure
But Bitquence has bigger plans beyond launching a convenient asset management platform.
We want to position Bitquence in the market to be the leader in secure value management in
the new economy.
3.1 Money Market and Rapid Asset Allocation
As of right now, Bitcoin is the dominant currency by which all other currencies are measured
and exchanged. When someone makes a Bitquence deposit, the funds are converted into
Bitcoin and can be withdrawn as Bitcoin. In this sense, Bitcoin is the equivalent of the “Money
Market” in traditional brokerages and can be converted into diversified asset allocations.
Users who wish to acquire Bitcoin may do so by simply depositing fiat currencies. As we begin
to establish the Digital Liquidity Network, the money market may shift to BQX.
In order to achieve rapid asset allocation, we will initially use direct exchange integration to
convert Bitcoin into a given basket’s underlying allocation. The user will be given estimated
prices and ownership of underlying assets and will be able to compare it to actual
investment. Rapid asset allocation is important for participants who want to move quickly in
a rapidly changing market.
3.2 Cryptocurrency Services and Mass Adoption
Bitquence’s vision is to be the standard for cryptocurrency services in the New Economy. By
bridging the gap between the old and the new, we
intend to offer a safe and easy way for anyone to
interact with the future of finance. Global
remittance, instant payments, localized payment portals and so much more are possible with
the Bitquence Infrastructure. Furthermore, the Bitquence model can create a cryptocurrency
services company whose interests align with those of the people that it serves with Bitquence
3.3 Future Decentralization
Ripple started as a centralized service that intended to decentralize in the future. Bitquence
will start as a centralized service and decentralize pieces if it makes sense in development. As
the Digital Liquidity Network expands, it will begin to include liquidity partners and smart
contract coin exchanges which will assist in the decentralization of Bitquence. Furthermore,
we hope to be very transparent in order to comply with AML, KYC and FinCEN regulations and
to protect users from attacks against Bitquence. We have a grand vision, but it will take a lot
of time and effort to get there. We highly value community engagement and will regularly
update the community on the development efforts of Bitquence.
We are incredibly excited about the huge potential of Bitquence. Thank you for reading our
whitepaper, and please visit www.bitquence.com to follow us on social media and interact
with our community-driven project.
This is not an of er or to sell or a solicitation to buy any digital assets. The cryptocurrency space is
volatile. Please be careful and thoughtful when purchasing any cryptocurrency token, digital asset or
token sale. This paper can be changed at any point with no prior notice.