A Transition and a New Chapter: The Future of Qchain’s Marketplace
It is with heavy hearts that we announce that the Qchain team will be moving on from the project. The platform’s development and operations will continue in the future with a new team. Read the full message from CEO Wally Xie below.
Dear shareholders and tokenholders of Qchain,
With a lot of sadness, I announce that the Qchain team will be taking steps to dissolve Qchain Co. as a Delaware C-corporation entity operating in the state of California. Fortunately, the project will continue, just not with the existing U.S.-based team. There is good news in the coming paragraphs, so please read on for more details.
Since early 2017, the small core team behind Qchain has labored fervently with your support and efforts to create a branded content marketplace focused on facilitating transactions between advertisers, marketers, and content creators. Following our ICO, which concluded in December of 2017, we spent the next stretch of months building the platform and were able to reach the milestone of releasing a minimum viable product (MVP) on December of 2018. With the MVP, Qchain Co. became one of the first companies to release a blockchain-based content marketplace.
However, Qchain Co. faced some challenges that, in combination, now limit our ability to focus on product and business development:
- We did not raise a substantial sum during ICO and the current market climate does not facilitate further venture capital fundraising at this stage;
- We realized a severely depreciated value of our ICO funds due to the sudden emergence of a bear market;
- We had to spend significant sums on legal counsel and advice, as the blockchain-based startups in the U.S. were subject to rapidly changing enforcement standards and emerging regulations;
- We had to set aside payments to deal with tax liabilities in relation to our ICO;
- As a project dependent on the public Ethereum and NEM blockchains, we were dependent on the rollout of features and upgrades on these larger public ecosystems, and were affected by the instability and delays to the roadmaps of these larger platforms;
With a limited amount of cash remaining, we cut remaining expenses and carefully evaluated the options facing Qchain Co. We negotiated and explored sales of the intellectual property (IP) assets of Qchain Co. to raise funds. However, we did not receive any offers that provided:
- Cash that reflected the fair value of the IP developed; and
- A viable plan for future development benefiting the interests of ICO contributors.
Therefore, we turned to another experienced party that has been advising us since the beginning of Qchain and developed a plan for our next steps:
- Qchain’s intellectual property assets will be transferred to a special purpose vehicle (SPV) based in Singapore (we share some details below, and further details are forthcoming);
- Qchain Co., a Delaware C-corporation entity operating in the state of California, will be dissolved;
- The existing Qchain team will concentrate on settling and closing the legal and tax burden related to the existing entity; and
- The SPV will subsequently raise funds and will hopefully be able to continue and grow the project in due course.
The SPV that is acquiring Qchain’s assets is called AD360. We can provide the following preliminary details:
- The SPV is incorporated in Singapore.
- The SPV is a separate entity, not owned by the principal shareholders of Qchain Co.
- The SPV is entering into an arm’s length transaction with Qchain Co. over the assets, which will include IP and the foundation tokens.
- The SPV, if it is able to successfully raise funds and develop the product and business, will provide a viable plan for future development benefiting the interests of ICO contributors..
We will provide more information about the SPV once the paperwork is completed.
We believe that there are several benefits that will result. For one, under a non-US entity, there will certainly be more opportunity for the growth and exposure of the project. Developer resources are also cheaper in non-US jurisdictions. Lastly, the competition for services to influencers and content creators is intense in the US and there may be more attractive opportunities in non-US markets.
Although the market conditions have not been ideal for the past year, we remain enthusiastic and optimistic about the long-term prospects of blockchain technology and the potential of our product. We will carry out the project handoff over the next couple of months, and will implement EQC marketplace functionality as part of the transition.
With respect to Qchain’s existing social media groups, more specific information will be provided in the future, but here is some initial information. The Qchain project will rebrand as Ad360. As such, the www.qchain.co domain will point to www.ad360.io. The marketplace will be renamed to “Ad360 Content Marketplace”, and components referring to the name Qchain will be altered to fit the rebranding. (Edit: The new Ad360 Discord is now up. Click here to join. Note that the Discord channel is only for vetted, KYC’ed tokenholders or previous shareholders. Leon Yeoh will perform verification of persons joining the Discord.) Activity from the @QchainPlatform Twitter handle and the Qchain Facebook group will cease, but the accounts will not be deactivated. Similarly, the Telegram group, @QchainPlatform, and our Subreddit, r/Qchain, will stay online, but the team and I will be less active in engaging and moderating in order to focus on our legal and tax wrap-up. The existing team will notify you after the project handoff has been completed.
Because of the blood, sweat, and tears we’ve poured into Qchain, it is very painful and poignant for us to transfer the project to new owners. However, we will do what it takes to see the project and business continue. Thank you for your patience and support throughout our journey.
Chief Executive Officer, Qchain Co.