Researching Technicals & Analysis - QASH
Data courtesy of Coin Market Cap
The wp is fucking 73 pages long, so buckle up!
TL:DR - I really like the product, the vision and the team. There could be a lot of long term value in the banking relationships they are building, and I am curious to see if they are able to eventually compete with Coinbase. However I will not hodl a significant amount of QASH because the token does not appear to have much/any intrinsic value.
Problems Outlined
TL:DR - Trading liquidity, fiat onboarding/offboarding
Highlighted from Whitepaper
“Currently, the liquidity landscapes for Crypto Tokens are fragmented. The top cryptocurrency exchanges all offer different Crypto Token pairs, and no one exchange dominates in any one Crypto Token pair.”
“In a sense, the various cryptocurrency exchanges are Liquidity Silos. They are liquid in some pairs, but their liquidity is only accessible to clients of that exchange. And while most of the exchanges offer liquidity in certain highly liquid currencies (USD, EUR, CNY, JPY, etc.), there is no convenient and highly-liquid on-ramp into the Crypto world for holders of minor currencies such as CAD, NZD, SGD, PHP, IDR, etc.”
“What if an individual or business’ most significant asset is tied to a specific Crypto Token, without liquidity?”
“A company can have the largest asset base in the world and the best-run business, BUT if at any point in time it needs short term-finance, and is unable to lend against or liquidate any of its assets, then that company is in trouble.”
Value Propositions
TL:DR Combine liquidity of all major exchanges. Trader A can buy BTC with USD from trader B who sells BTC for JPY (or another currency). Can use crypto as collateral for loan. Have licenses and banking relationships for fiat onboard/offboard in six different currencies.
Highlighted from Whitepaper
“Quoine Liquid Platform is a single globally-sourced trading platform (World Book) with an associated suite of services (Prime Brokerage). Combined, these produce the highest level of liquidity in the world”
“A multi-market order book that combines every liquidity source in the world in a single high liquid tradable order book, in any currency a user chooses”
"The LIQUID Platform’s World Book offers a multi-market order book that aggregates the [orders /prices] on world’s various liquidity sources into a single highly liquid tradable order book, allowing orders to be placed in the currency of one’s choice"
“The Liquidity Silos and Underserved Markets problems are solved by connecting these exchanges into a single point of liquidity, and by allowing the order book to be priced in any of the major currencies and many minor currencies.”
“The end goal: QUOINE is building a solid, global financial utility—an advanced platform the entire Crypto economy will use to great advantage; where anyone can participate as users and
“With over two and a half centuries of combined experience in finance and financial technology, QUOINE’s team understands the industry inside out. In fact, we understand it enough to know legacy finance is becoming obsolete.”
“The LIQUID Platform brings together the entire global network of cryptocurrency exchanges and makes them accessible to everybody.”
“Increase in Capital Efficiency: LIQUID Platform users will be able to deal on other exchanges without having to move funds directly. Capital movements will be done via QUOINE’s funding facilities, and should be instant for both Crypto Token and fiat.”
Could be a great way for traders to take advantage of arbitrage opportunities
Under the Hood
“For example, a German trader (A) wishing to sell BTC (Base Currency) can choose to see the World Book for BTC in EUR (their Quote Currency). When they place an order in the World Book, they see their order enter the BTC/EUR market, and the order’s price is reflected in their orderbook in EUR. While, a Singapore trader, using the World book, 19 will see the entire order book in their own currency of choice, likely SGD. They will see the order that was placed in BTC/EUR by the German Trader, priced in SGD – and from the Singapore trader’s perspective, the German trader’s order will fluctuate with changes in the EUR/SGD rates.”
This sounds entirely unique and could be a huge opportunity
“If the order to sell BTC/EUR is matched with an order to buy BTC/SGD, an FX conversion happens behind the scenes. Both parties receive their execution in the respective currencies of their orders.“
The architecture
Matching Engine (ME)
Cross Currency Conversion Engine (CCCE)
Smart Order Routing (SOR)
“Matching Engine is capable of processing several million transactions per second, making it one of the most advanced matching engines in the industry.”
Cross currency conversion engine is already “being used extensively by Quione on a daily basis”.
“For example, using ETH/BTC for currency conversion, it becomes possible to provide a match between an order placed in ETH/SGD, and one placed in BTC/SGD.”
“Furthermore, adding a fiat FX conversion allows for matches between pairs such as ETH/EUR and BTC/SGD”
Licenses and Banking Relationships
Highlighted from Whitepaper
“As of 29th September 2017, we are the first global cryptocurrency firm in the world to be officially licensed by the Japan FSA (License 0002): http://www.fsa.go.jp/menkyo/menkyoj/kasoutuka.pdf.”
“Over the past three years, QUOINE has built an extensive network of relationships with banks.”
“QUOINE is also in the process of applying for a formal Banking License”
“The LIQUID Platform has bank accounts in Japan, US, EU, Taiwan, Singapore, Philippines, Indonesia, with more to come.”
“QUOINE’s parent company QUOINE Corp. operates a fully-regulated Cryptocurrency exchange under the Japan Financial Services Agency and we were the first global exchange to be officially licensed on September 28th 2017 (License No. 00002).”
“Big 4 firm as our external auditor”
Token/ICO
"Token holders. QUOINE LIQUID will become a complete financial ecosystem for the Crypto
economy.”
“We envision QASH will be used in the broader financial industry and any other industries for various purposes including payment and remittance”
Why???
“Please note that QASH does not represent any equity in QUOINE and does not entitle holders to any voting rights, dividends or profit-sharing of any entities of QUOINE. QASH is a Crypto Token that can be used as the fuel that powers all services provided by the LIQUID Platform and QUOINE’s existing platforms “
Nothing lined out above indicates the need for a shit token
“QASH has two main functions:
- as Crypto Token users can pay for services on all of our platforms;
- as a tradable Crypto Token on the open market”
Sounds like the Binance Coin, which I use to pay fees because there is a discount. However, it is not something I would hodl long term as an investment
“Having QASH listed on various exchanges is another way we expect the Token utility to increase with liquidity”
Once there is a liquid market for the token then the utility of the token will increase.... is that seriously the best they could come up with...go fuck yourselves!
“Finally, as an added incentive, QASH owners will receive periodic promotions, discounted fees, preferential access to new products/services, and opportunities to invest in future ICO/Token Sales that QUOINE will help launch.”
Now it sounds like a timeshare pitch
Token Specifics
ERC-20 Token
Issuance: 1,000,000,000 QASH
Pre sale discount: 20%
Use of Proceeds
“By Year 5, QUOINE will fully distribute the reserves and only retain 20% allocated to Management and QUOINE shareholders.”
“Proceeds will go into Liquidity (50%), Product Development (20%), Operations (15%) and Legal/Regulations (15%).”
QASH BLOCKCHAIN
“By Q2 2019, QUOINE will create its own blockchain (QASH BLOCKCHAIN)”
Why???
As far as I can tell they do not intend to make this a decentralized exchange and none of the features they talk about indicate a need for a blockchain
Support for shitcoins
“Token issuers will be able to leverage all of LIQUID Platform’s technologies and services to create a market for their Token in QRYPTOS. Our LIQUID Platform will be capable of fully supporting the new emerging Crypto Token economy, and help eliminate the current liquidity challenges it is facing.”
This would make it easier for ICO’s to exit scam and that could be a serious problem
Competitive Advantage
“Unlike most other Token offerings so far, the LIQUID Platform is a real product backed by a world class company (QUOINE). It has a strong management team with hundreds of years of combined financial technology experience, and live-scalable products that are already used by hundreds of thousands of active users.”
Don’t forget the disclaimer from above:
“Please note that QASH does not represent any equity in QUOINE and does not entitle holders to any voting rights, dividends or profit-sharing of any entities of QUOINE.”
This is they type of semantics that really fucking pisses me off. It can only be meant to confuse and mislead an unqualified investor. It is a real product backed by a real company, however tokens do not represent equity, dividends or profit sharing. Go fuck yourself again!
Competitors
Omega One
Bancor
Quantave
Exchange Union
Rialto
SALT
Technical Analysis
Bubble posture
Just broke through major resistance (weak volume)
Buying pullback at 0.00009 makes sense
Final Thoughts
I love the idea and I love the execution thus far. I just wish they wouldn’t be so scammy with the ICO. I would love to buy some tokens if it represented a share of the companies profitability (like a stock).
Since it doesn’t then the only way to make money is dumping on the pumps. As long as you understand this then feel free to try and take a scalp.
Pump, Dump or Hodl?
Pump it!
Comment if you have something to say. Smash the like if you are still reading and definitely finger that follow!
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