Quantum (QAU) – self-destroying coin that provides liquidity, arbitrage and lending to crypto markets

Author: Kaloyan Roussev
Date: 9 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 9 September 2017 today. This review takes into consideration investing in QAU at its current price at $0.21

Quantum – profits from their activities will buy back tokens and send them to a black hole, creating deflation. Price per token goes up. Let’s dig into that.

How do I rate an investment in this project at the current price? (TL:DR)

I am definitely not buying Quantum QAU. I started this research extremely excited – self-destructing crypto, deflation, value going up. And then I found this:

  • deflation has been around 1% per month so far. Nearly not enough a reason for a 10x price surge, which is what I am trying to find, doing these reports
  • even though there is deflation, the price has been going down for 3 months now
  • 66% of the existing pre-minted tokens are centralized in the developers’ hands. And they plan to sell more in the future to buy more Bitcoin to increase their liquidity pool. So we get 1% deflation per month on one hand, and then a possible 3x increase in the supply (300% inflation) on the other. Please correct me if I am wrong
  • there will be no more bullish events of any significance any time soon – this is a finished product, they now trade with the bitcoin they got during ICO. Got listed on several exchanges, price didn’t move. Revealed that bitstamp founder is the founder of this project as well, price didn’t move. Revamped their website, price didn’t move (significantly, that is). There is nothing more on their roadmap, other than a b2b liquidity platform, a year from now. Crypto bubble might have burst by then. Can’t go that far into the future in crypto, at least I can’t. Not for 1% deflation per month and literally nothing else.

By the way, the team is great, and have delivered on their promise. Site looks nice too. They are making profits and burning coins. They are getting added on exchanges here and there. I just don’t see this coin as a 10x-er, so I won’t buy it. Yeah the price might surge if they get added on a big exchange or a youtuber youtubes about this coin, but it will be shortlived and not based on increase of intrinsic value, but on speculation alone. Cutting my research short, no point in wasting any more time. I will publish whatever I have logged while reading 54 pages of their bitcointalks forum.

Project/token summary

The coin might have been designed with price speculation in mind – their purpose is for the price per coin to keep rising, by providing deflation by self-destruction. The coin is supposed to create liquidity, and help with lending and arbitrage in the crypto sphere, and all the profits from those activities will automatically buy back QAU tokens and send them to the black hole address that will be publicly observable at all times. With the price per coin increasing, it will take more profits for destroying the same amount of coins in existence, so at some point, there will be equilibrium in coin price/destruction rate, which will delay the moment in which all quantum coins will disappear. Who will know what are they doing with the liquidity pool and how much are they earning? They can make much more than what they use to buy back their tokens. There’s no transparency or utilization of an automated process for us to observe what is happening

 

Website: https://www.quantumproject.org/
Coinmarketcap: https://coinmarketcap.com/assets/quantum/
Exchange: https://hitbtc.com/exchange/QAU-to-BTC

Social

  • Is there a Bitcointalk forum Announcement thread – https://bitcointalk.org/index.php?topic=1870606
  • How many pages is it – 54 for more than half a year. Hardly a popular coin
  • History of the coin according to the forum and general public impression of the coin throughoutread the first 10, last 5 and several random pages – in the beginning a post with very scarce information and no escrow was posted. Users backlashed against that. It has improved ever since. Users were wary of the lack of team credentials and more useful information about the project. Without the uncertainty caused by this, everyone seems to like the deflation idea. QUANTUM-Project is a team member that participates in the talks there. A user was concerned about the developers’ ability to some day dump the coins from the black hole address. Quantum responded that they’ve deleted the private key and there’d be no use of taking funds out of the wallet since it is being publicly watched and it would ruin the reputation of the project (but if they were to dump, they wouldn’t care about the project’s reputation anymore would they? It is a good thing they are public figures and would harm their own reputations if they did) In an interesting turn of events, Qtum steps in to confirm that there is no relation between both projects. Xaurum’s CEO becomes the escrow for Quantum, so everyone relaxes. I am very disappointed in this thread. 30 pages in, ALL these users are talking about is signature campaigns, funds raised in the ICO and price. There were 2 or 3 users who actually thought to ask how is the liquidity mechanism going to be provided, to which exchanges, what has been done about it. Unfortunately the Quantum account was nowhere to be found to provide answers. Finally there is an answer: “We will be approaching exchanges that we find interesting and currency pairs that offer the best possible returns. Generating returns by lending is just part of our business.” – but how can we verify that this is happening? Here is another answer from them worthy of reading https://bitcointalk.org/index.php?topic=1870606.msg19036541#msg19036541 ICO finished, they raised $4 million. Additions to several small exchanges in the first half of June. Low volume, price jumping up and down. At 10 June they announce they are already making profit and buying back tokens. Burned 0.5 million tokens at the end of June. Here, they say that beside the 82 million issued tokens, the remainder of 100+ million tokens are reserved so that they can increase the liquidity pool (BTC) in the future – https://bitcointalk.org/index.php?topic=1870606.msg19895692#msg19895692so with <1% deflation per month, and 200% delayed inflation in the future, the entire thing doesn’t make any more sense to me. At least this is how I interpret it – they are going to sell these coins for Bitcoin in the future (flood the market with it) (please correct me if I’m wrong) Not to mention the high degree of centralization (around 66%) of coins.

 


Subscribe to get immediate updates once a new report is available


Subscribe to the weekly newsletter: