Global Blockchain Exchange (GBX) – Sale to Mine Digital

The sale of GBX, for an undisclosed sum, is part of a strategic repositioning by GSX Group to focus on it’s core competencies within digital securities markets. 

13 January 2021: As part of strategic repositioning, the GSX Group is selling GBX to Mine Digital, an Australian based digital asset exchange, in order to focus on its core competencies within digital securities markets.

During 2018, although we achieved our original aim of launching a fully integrated licensed utility token sale platform and digital asset exchange, after a rapid price correction in markets, it was clear that markets had changed.  In addition, the ICO market, previously a launch pad for innovative start-ups to get access to funding, effectively closed.  By 2019, the cryptocurrency exchange market reached its first stage of maturity with the top 3 cryptocurrency exchanges capturing in excess of 75% of market volume, aided by the fact that they remain largely unregulated and offer their users access to up to 100x leverage. In such a market, the GSX Group made the decision to sell GBX in order to focus on its time and resources on digital securities markets. 

The GSX Group enters 2021 with a sole focus of building our digital securities exchange network.  We are in the process of finalising our go-live readiness for the opening of our first digital security exchange in Labuan, and are at an advanced stage of discussions to commence applications for further exchanges in both the US and elsewhere in Asia.  Our vision is to provide a digital securities exchange network upon which both native and non-native tokens can interoperate. 

Nick Cowan, CEO of GSX Group commented on the sale, stating: 

“We have taken another important step in our goal to move wholly into digital securities, which we have always seen as a significant opportunity in the evolution of capital markets. Our strengths are aligned to the world of capital markets, and our time and focus can now be fully dedicated to the opening of our first digital securities exchange in Labuan, Malaysia.” 

Mine Digital is a digital asset exchange and brokerage firm. The exchange business aims to be one of the leading crypto-fiat exchanges in the APAC region and is developing a variety of derivative markets for both retail and wholesale investors.  Grant Colthup, CEO of Mine Digital, stated on the acquisition of GBX: 

“Mine Digital are pleased to expand our footprint into Europe and at the same time acquire a blue chip operation such as Global Blockchain Exchange (GBX). We look forward to furthering our relationship with them via listing their GATE token which fits nicely with our current strategy. A big thanks to Andy Pal for recognising the synergies between the two groups and bringing the deal to the table.”

What is going to happen to GBX?

GBX will be sold to Mine Digital on 31 January 2021.  Mine Digital will not continue operations under the GBX banner, they will use their own platform technology, meaning several key changes to the GBX exchange platform in the lead up to 31 January 2021:

  • 13 January 2021:
    • STACS/GATE swapping will be halted 
    • New account registrations will be discontinued
    • Token and fiat deposits will be deactivated
  • 20 January 2021:
    • All trading will cease on the exchange
  • 29 January 2021:
    • GBX-DAX (Digital Asset Exchange) will be closed
    • Withdrawals will be stopped
    • All customer accounts will be closed

What is happening to my account?

On 29 January 2021 all customer accounts will be closed.  Customers will be required to go to Mine Digital to activate their accounts. Information on account opening with Mine Digital can be found here: 

What is happening to my tokens/fiat?

Customers have until 29 January 2021 to withdraw their tokens and fiat from their GBX account.  After 29 January 2021 any fiat and/or tokens that have not been withdrawn will be held by Mine Digital.  Customers will be required to open an account with Mine Digital to be allocated their token and/or fiat balances on their Mine Digital account.

De minimus token and fiat balances on customer accounts below GBX’s minimum withdrawal amounts will be converted to GBP and will be donated to a Gibraltar charity after the GBX-DAX has been closed.

What about STACS and GATE tokens? 

Following feedback from our community, we have minted an ERC-20 GATE token: Ethereum Transaction Hash (Txhash) Details | Etherscan.   The ERC-20 GATE token will be the sole utility token of the GSX Group; uniting our community back under one utility token.  

Why issue an ERC-20 GATE token?

We listen to our community who have told us that their preference is to have an ERC-20 utility token; they wish to be able to self-custody their tokens; they wish to be able to control the transmission of their tokens via a public blockchain network.

Where will the ERC-20 GATE token be listed?

Mine Digital will list ERC-20 GATE tokens; they intend to do so during March 2021.

What about ERC-20 GATE token utility?

ERC-20 GATE tokens will have a number of utilities within the GSX Group’s digital securities markets strategy, including but not limited to, on-chain fees, staking and rewards.  Full details of ERC-20 GATE token utility will be provided within the GATE Token Whitepaper that will be released during Q1 2021.

What about the ERC-20 GATE token swap?

The total global supply of ERC-20 GATE tokens is 900 million; the same as the total circulating global supply of STACS and GATE Mainnet tokens. 

STACS and GATE Mainnet tokens will be swapped to ERC-20 GATE tokens via a 1:1 swap ratio, and will processed via a combination of airdrop or transfer to Mine Digital summarised as follows:

  1. If you hold STACS tokens outside of the GBX-DAX in an ERC-20 wallet, no action is required; ERC-20 GATE tokens will be airdropped into your ERC-20 wallet.
  1. If you hold STACS tokens on the GBX-DAX, you have a choice, you can either: 
    1. withdraw your STACS tokens following which we will airdrop your ERC-20 GATE tokens into your ERC-20 wallet; or 
    2. do nothing and your ERC-20 GATE tokens will be transferred to Mine Digital.
  1. If you hold GATE Mainnet tokens on the GBX-DAX, you have a choice, you can either:
    1. submit a withdrawal request and we will airdrop your ERC-20 GATE tokens into your ERC-20 wallet; or 
    2. do nothing and your ERC-20 GATE tokens will be transferred to Mine Digital.

What happens to STACS and GATE Mainnet tokens?

As from today, STACS and GATE Mainnet tokens cease to be utility tokens of the GSX Group; the ERC-20 GATE token is the new utility token of the GSX Group.  

What about the Management Team?

The GSX Group management team that drives the digital securities strategy including GATE token utility, led by Nick Cowan, CEO, is focused on delivering the digital securities strategy and remains 100% committed to GATE tokens, and GATE token holders.

For enquiries regarding GBX, customer accounts, tokens/fiat on your account, and/or STACS and GATE tokens, please contact us via email at [email protected].