ICO Review: QUANTA Chain (QDEX)

Build fast and secure digital assets exchange across any token/blockchain using the QUANTA Chain Infrastructure, comprising of QUANTA Blockchain, trust wallet, and token model.

Introduction

QUANTA Chain is positioned to be the fast, open, scalable public blockchain for digital assets exchange across any blockchain where liquidity is provided instantly to user on any app, platform, or exchange.

QUANTA DEX will be the first use case on QUANTA Chain.

Comparison of centralized and decentralized exchanges
Centralized exchanges​ still dominate​ the trading volume by more than 99%​.

Problems with centralized exchanges

  • Risky: stores order books, customer balances, … on traditional databases; holds your funds; holds the private key
  • High Listing Fee: high operations overhead; high listing fees between $500k and $2m

Problems of current decentralized exchanges

  • Blocktime: limitation by block time of the underlying blockchain platform e.g. 15+ seconds
  • Scalability: number of transactions are limited due to the underlying blockchain (e.g. 13 TPS on Ethereum)
  • Liquidity: low liquidity or shallow order book

QUANTA’s Solution

  • Fast consensus
  • Distributed memory pool
  • Fast commits
  • Starting with 500k orders per second and scaled to 5m in the future

Quanta Blockchain

  • Dual Ledger BFT (Byzantine Fault-Tolerant) Consensus
  • P2P distributed memory-pool
  • Smart Contracts Support (in the future)

Quanta Trust Wallet

  • Enables cross chain trading
  • Holds external blockchain tokens
  • Supports fully decentralized keys
  • Secured by an AI-driven detection and response system

Quanta Token Platform

  • Platform for fundraising
  • Platform for exchange service
ICO tokens can be traded right after the ICO

Business Model

Fee distribution model

Both QUANTA (20%) and the community (80%) get revenue, distributed from the fee pool. QUANTA uses those funds to further improve the blockchain, do marketing and promote partnerships.

Our Rating

Project

  • Type: Infrastructure
  • Stage: Prototype (pretty early stage, not much information available)
  • Peer Group: Smart Contract Platform / Decentralized Exchange
  • Blockchain: Own blockchain
  • GitHub: available, but the interesting stuff is still in private repositories
  • Centralized as well as decentralized exchange prototype in Q3/Q4 2017
  • Wallet development start, beta registration and internal testnet launch Q2 2018

Idea

  • Disruptive, trying to solve a real pain point
  • Competition is medium; other cross-chain DEXs like e.g. Switcheo and NEX are competitors to QUANTA DEX. The closest competitor to QUANTA Chain is Wanchain (financial cross-chain smart contract platform focused on asset exchange)

Team & Advisors

  • Quoc Le (Co-Founder & Managing Director): Loads of experience in (technical) lead positions; has working experience at IBM and PayPal (only for 9 months each though) but also worked at some larger companies.
  • Afonso Barbosa (Co-Founder & Director of Marketing and Operations): Former CTO of a leading touchscreen production company in Portugal. Lots of experience in product design, research, team and project management.
  • Minh Do (Chief Scientist): This is the distributed system scientist/research all-star behind the project. He worked at Netflix for 5 years and is the creator of Dynomite (https://github.com/Netflix/dynomite).
  • Zhongwu (Evan) Shi (Business Development): Formerly worked as a frontend developer, so he does not seem to have experience in business development.
  • Sergey Zhuravlev (Wallet & Security Engineer): Has quite some experience in software development and data science. One was his former projects was seemingly related to cyber security.
  • Fairiz Azizi (Special Projects): Forward thinker with loads of experience in software engineering. His role at QUANTA is unclear though.

Tokenomics

  • Passive income via holding the token
  • The more the platform is used, the more the token value should increase
  • Founder and advisor token are locked for 4 years with 1 year cliff
  • Token supply is stable (no inflation, no deflation)

Community

  • ~8k in Telegram (not maintained though)
  • ~8k on Twitter
  • 230k+ beta registrations (should be taken with a grain of salt because you get up to $75 for signing up)
  • Not much hype, pretty under the radar

Roadmap

  • Q1 2019: Mainnet
  • Q2 2019: Sharded BFT consensus
  • Q3 2019: Smart contract & ICO platform
Past & future roadmap

Tokensale

  • Community rewards are released over the course of 20 years
  • Private Sale: since 01.06.2018
  • Public sale: 01.08.2018 (Whitelist since 01.06.2018)
  • Total supply: 400m (60m + ? sold (60m in private sale))
Token distribution model

Strengths

  • Good idea, they try to solve a real pain point
  • Small but great team with lots of experience in both management and software engineering
  • Most of the fee pool (80%) goes back to the community
  • They are going to implement a business model which can sustain over the long run (not many projects do that!)
  • Currently still under the radar

Weaknesses

  • Competition; the blockchain platform tries to compete with Wanchain and other infrastructure smart contract projects
  • Lot of information is still missing (e.g. token sale, lockup time for “Quanta Fund”, …)
  • There are no persons to talk to in the official channels
  • They keep the right to burn tokens to reduce the supply and issue new tokens with a subsequent token generation event which literally means they are in full control of the token price → red flag 🚨

Conclusion

Ambitious project which tries to tackle the issue with decentralized exchanges on a blockchain infrastructure level. The core team is packed with great people and if they use the funds wisely they can build an awesome company and compete with other projects out there that tries to solve similar issues.

They don’t communicate well, which is unfortunate as a lot of information is still missing and some things are unclear. But what’s really a red flag is that they are seemingly in full control of the token supply and therefore of the token price which is an absolute no go. I hope they clarify these issues in the future, we will update our review accordingly.

🚨 Don’t forget to clap 👏 and to follow 👫 us if you like what we do! 🙂




Disclaimer: block42 is not a registered investment advisor, broker/dealer, financial analyst, financial bank, securities broker or financial planner. The information is provided for information purposes only. The information is not intended to be and does not constitute financial advice or any other advice, is general in nature and not specific to you.

We are not paid or mandated to do any of our reviews. This is just our own opinion. Please always do your own research before making any investment decisions.