Author: Kaloyan Roussev
Date: 10 September 2017
Do not make investment decisions based on this article – read the disclaimer before you proceed and leave the website if you disagree with it.
It is 10 September 2017 today. This review takes into consideration investing in QTUM at its current price at $11.97
QTUM – A cheaper NEO?
How do I rate an investment in this project at the current price? (TL:DR)
The price is already way up, even after the beatings QTUM took lately. There are several bullish events coming (one on the 13th, one next month and some ICOs on QTUM platform in Dec). QTUM is fighting for a place under the sun of the same niche where Ethereum and NEO are, and they have to be happy to have went above $10, so in my opinion the growth potential is limited. I bought an insignificant quantity yesterday, just to see if I could make 60-100% around the 13th.
QTUM is a high-tech hybrid between Bitcoin (utilizing their UXTO) and Ethereum (smart-contracts). It claims to have the better of both words, and who knows – maybe they do. They have long suffered the accusation against one of their founders for committing a massive fraud against bitbay in 2014 and using a different name back then (read more here: https://bitcointalk.org/index.php?topic=1720632.msg20550749#msg20550749 and a fairly objective overview of the situation here: https://www.smithandcrown.com/qtum-controversy-patrick-dais-exit-bitbay/) Now, I don’t have a problem with this, because even if he did that, he’s not gonna do it again, not to mention his co-founders have publicly said that they wouldn’t let this happen as they use multisig wallets now. But you know how investors are… boo hoo.
They are now under fire for being closed-source, for having closed their slack channel, for being an ICO platform, for having a substantial amount of users from China. They also suffer a slight confusion among the crypto society because there are cryptocurrencies called Quantum (QAU) and Quanta. They also got delisted from a Chinese exchange recently after the China regulation FUD.
Here’s another bummer – their countdown to 13 September mainnet launch has misteriously stopped a few days ago https://qtum.org/en/mainnet
In spite of all this their development is running strong. The team is big and is working hard, regularly posting development updates, having a handful of big things coming… QTUM was definitely a good investment some time ago. At north of $10 – I don’t know.
One more thing – I am not sure, but I think their smart contracts only support solidity like Ethereum, unlike NEO whose platform allows for writing smart contracts in most popular languages. If that’s the case, then NEO has the upper hand. Couldn’t find anything in their whitepaper or elsewhere that suggests otherwise.* I urge the reader to be so kind as to inform me on the state of things here. * I got to a part where they say that there is another language they’ve developed to serve their purposes (facepalm) – QSCL.
Branding/Positioning -Bitcoin is the cryptocurrency; Ethereum is the viable alternative – the smart-contract cryptocurrency; Neo is the supposedly technologically better cryptocurrency alternative to the alternative (Eth); QTUM is an alternative to NEO (the alternative to the alternative). I am being redundant intentionally. Just wanna demonstrate how many monkeys on the “smart contract platform” branch. And we also have ARK, RISE, Komodo there. You can also see how in the market place, filled with imperfect human beings, actual technical specifications and quality don’t win. It is the “first mover advantage”, the first prominent leader who already fills a box in consumers’ minds, that gets a substantial part of the category. Then its the alternative that challenges the leader. Then its the better companies who say “me too, me too, look at me I am better” but they are too late to the party. Once an association between a name and a category has been made, it is impossible to distort the impact on perceived quality that draws in the brain. So they pick up the scraps – NEO. And then QTUM picks up the scraps of the scraps, and I might say at this price it is doing better than it should.
Token utility – transfer of value, I guess. Will update if I find anything else.
Upcoming bullish events – main net starts on 13 September. Mobile wallet next month. Several ICOs 2017Q4 (if they don’t get cancelled or moved to another platform, which is a comment I saw on their facebook). Wait, are they actually launching a satellite into space? https://www.reddit.com/r/Qtum/comments/6yfmg8/qtum_sending_satellite_into_space_official/
- Website: does it look good/presentable – it is a very original beautiful website, a bit dark for my taste, but I like the seriousness of it and the font they use.
- Roadmap – I found this among their posts on bitcointalks:
- Whitepaper – yes, a very technical one https://qtum.org/uploads/files/a2772efe4dc8ed1100319c6480195fb1.pdf
- What is their progress according to the roadmap – they are a few days from the release of their mainnet. Were recently added on coinone – biggest Korean exchange.
- Website: Is it a quick wordpress template, a 2-hour html job or a custom design with lots of work, money and thought thrown at it – custom and stylish. Their domain name is very good with an .org TLD
- What new does this cryptocurrency bring to the world, what problem does it solve, what does it stand for– yet another smart contract platform.
- How does the cryptocurrency name sound (does it sound legit and like a good brand name) – there is another crypto also called Quantum and they are both stupid, because although the word is cool, it is an incredibly generic and dull way to call your cryptocurrency. And QTUM (Que-tuhm, I pronounce it) at least stands out in a somehow gross way.
- How does the logo look – not very original, but looks good.
- Is it a PoW, PoS or PoW/PoS coin, what is the mining difficulty or APR, does it suffer from inflation – PoS with 1% inflation per year – at least we don’t have this to worry about. No miners dumping at below-market prices, as they love doing, and no huge inflation to devalue the coins.
- Who is behind the cryptocurrency – are they shady figures, or have they placed their names and pictures on the website; what is their track record and reputation; do a quick google/github research on them – Patrick Dai, a.k.a. Steven Dai – a person who got accused of committing one of the biggest scams in cryptocurrency, but also very knowledgeable in the crypto sphere. And then a huge team of various respectable professionals with years upon years of experience. Backed by Bitcoin Jesus, among others. Here’s the team in their full glory: https://qtum.org/en/team
- What is the limit on supply of coins in circulation – 100 million
- Is there a link to the source code – https://github.com/qtumproject – further above I wrote that they are closed source, but here I stand corrected. I guess the complaints about that, that I had read, are outdated.
- When was the last commit made, and how frequent are commits – not two hours ago by Earlz himself. I took a look at their Android repo and the quality of code is very good – they are using Clean Architecture with Interactors + MVP for the view layer. I don’t think it can get any better than that.
- How many developers participate in the coding – I counted at least 5-6 people, maybe more.
- What the project survival relies on – governments’ mercy regarding ICOs. It has already survived the scam-calling.
- Will this project survive a cryptocurrency bubble burst and does/will it have enough of a following that needs it every day – probably not. A bubble burst will wipe out all the me-toos and also rans and only leave heavily scarred market leaders, which QTUM is not
- Competition – Ether, Neo, Rise, ARK, Komodo
Exchanges and trading
- Which exchanges (and how reputable they are) is the coin traded on – looks as though they’ve done great for themselves being added on so many Chinese exchanges, shit exchanges, biggest Korean exchange, and the Mecca for Cryptos – Bittrex (the most accessible among the big ones)
- Daily trading volume – $135 million!
- Market cap – 3/4 of a Billion dollars. The bigger they are, the harder they fall.
- Are there buy (support) or sell (resistance) walls – nothing significant to comment on.
- How does the chart look – ups and downs caused by bullish events and FUD
- Is there a Bitcointalk forum Announcement thread – https://bitcointalk.org/index.php?topic=1720632
- How many pages is it – 240 pages but the vast majority was written up to 2 months ago
- History of the coin according to the forum and general public impression of the coin throughout – read the first 10, last 5 and several random pages – lots and lots of FUD (the alleged scam, the ICO crackdown), price speculation and dev updates through out. Qtum is there, and so is earlz and they are being proactive in communication. Some people predicting $20 soon.
- Do they have a blog, anything interesting on it? – dev updates with bug fixes and upcoming events; their business expenditures are there too https://medium.com/@Qtum
- Is there a slack channel – their slack doesn’t work and there’s a supposedly new one that someone has posted on reddit but I won’t believe it until I see it on their website or twitter.
- Is there a Twitter profile for the cryptocurrency and does it post regular updates, how many followers https://twitter.com/qtumofficial 20k followers, daily updates
- Is there a Facebook page for the cryptocurrency and does it post regular updates, how many likes https://www.facebook.com/QtumOfficial/ 5k likes. Frequent updates. This comment is a little worrying – https://www.facebook.com/QtumOfficial/posts/1782562808439350?comment_id=1782587925103505&comment_tracking=%7B%22tn%22%3A%22R0%22%7D
Popularity and perception
- What does a quick google search tell us about the coin – nothing worth mentioning
- Are there youtube videos about the coin – quite a few youtubers doing analysis on the coin
- What is the general sentiment in the comment section below the videos (constructive, fud/hype, calling out scam etc) – comments range from negative to positive, but mainly about the scam thing. Meh.
- Is the coin associated with illegal/criminal activity or the dark web – don’t think so
I am sure I might’ve made some mistakes in this post or in my research. Please, forgive me, if I have, and contact me to tell me where I went wrong. It takes about 4-5 hours of my time to do a full research on a cryptocurrency, and I try to do at least 4 per week.
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