Quantum’s team raised $4 million from their ICO.
They issued 200 million tokens and sold 80 million of them to investors. With the proceeds from the ICO, they created a liquidity pool of Bitcoin with which they go to cryptocurrency exchanges and provide liquidity for token pairs, lending, and arbitrage. They use the profits to buy back the QAU tokens on the market and send them to a Black Hole address to burn them (take them out of circulation). This creates deflation which in theory, and holding all else equal, is supposed to increase the price per QAU token over time.
One of Quantum’s founders is also the founder of Bitstamp. This is good…another positive? Their beautiful website, the fact that they’ve announced that they are now turning profits, and they’ve already burned QAU tokens twice, delivering on their promise.
So far, they’ve burned about 1% of tokens per month. So the entire deflation thing, and the only thing that is exciting about this project is 1% deflation. That’s all.
On the other hand, they still hold 66% of the tokens, which they claim they intend to distribute later on to get more BTC for their liquidity pool. This means there is a possible upcoming tripling of the QAU tokens in circulation (major inflation). The price has been in a steady decline for the past couple of months, in spite of the deflation, which could be pricing in some of the future distribution.
And since this is a finished product, there will be no more show stopping bullish events (aside from a promised B2B platform set for 2018Q3) anytime soon. All you can hope for is listing on a big exchange.
My goal with these research projects is to find 10x coins and I don’t think this is it – I will stay away.
Read the full in depth report here.