What happened to Quantstamp (QSP)? Lack of energy and excitement from the team leaves community disappointed
Quantstamp hasn’t been moving much as of late. August was opened with the price of $0.056199/731 satoshi before the bottom of $0.028747/472 satoshi that was reached on the 14th. Afterwards we saw the currency peak at the 27th with the values of $0.045986/685 before falling off into the September lows of $0.024789/396 satoshi on the 12th.
Looking at the current prices, Quantstamp is valued at $0.035983 USD (4.01% drop in the last 24 hours)/537 satoshi (4.25% drop in the last 24 hours). Daily trade volume is almost non-existent, sitting at 63 BTC. With a market cap of $21,595,451, Quantstamp is currently the 196th most valuable cryptocurrency on the market.
Biffy422 from TradingView offered this Quantstamp analysis:
“Will be interesting to see the long term play out on this chart, I believe that it is possible that the price may reverse around the end of September, as indicated by the time Fibonacci (blue pillar lines). If the price fails to break out by mid-October then I would consider this idea invalid. If the price rallies into an uptrend before this time, I would expect to see a bearish reversal sometime in early-October.”
Check out his idea here.
Quantstamp has fallen on some hard times as of late. The security auditing protocol which provides a cost-effective, scalable system of making sure your Ethereum smart contracts are safe and bug-free saw the overall interest in it drop off. Main reasons for this drop-off can be found in the general bear market we are currently experiencing as well as their notable lack of care for their community. Reddit user The5thRedditor sums up the general qualms the community has with the project:
“The problem is no one wants to invest in it because the company doesn’t care about QSP holders.
- First they burn the community by not giving airdrops to everyone. Many countries couldn’t receive them.
- They say that 50% of all proceeds from an audit go into cold storage. They won’t share the Address where the coins are going to verify.
- They started accepting other forms of crypto as payment for some services. This doesn’t help QSP holders it hurts them.”
The last point mentioned is probably the biggest issue with the project right now, as the team apparently accepted both other cryptocurrency and even fiat for their services in the past.
“Any USD or ether proceeds that we receive instead of QSP for manual audits support our overall mission to innovate in order to secure smart contracts,” said Richard Ma, the founder of Quantstamp, in a recent Telegram Q&A. He continued: “Some customers can’t buy QSP to pay us, which means that we miss out on the opportunity to be helpful and stay true to our mission of driving smart contract adoption for the ecosystem. Other times, when the audit is very important for the community, such as the Binance audit, we audit at little or no cost, as a service to the wider community.”
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This renders the QSP token, a supposed key part of the projects economy, basically useless. During the mentioned Q&A, several users mentioned the company’s restructuring and apparent firings/departures of several key developers.
“It’s a startup company – sometimes we need to fire people if they don’t perform well. But as a startup company – we will also build, and we will hire good people and deliver,” concluded Ma.
Still, the project is moving forward with updates and has announced a willingness to improve its communication in the future. A community update from August 29th confirmed that the Betanet (that was supposed to come out by the end of the month) is indeed going to be launched within days. And launched it was with an official launch announcement being made on the 31st. The news Betanet will run on top of the Ethereum blockchain and is a distributed permissioned network which moves the project closer to their goals of having a completely decentralized architecture.
The team recently released this lengthy overview of the Quantstamp Betanet 0.1.0 protocol; the overview addresses both the overall need for smart contract security/audits and how Quantstamp plans to fulfill this need. The Quantstamp Betanet being live on the Ethereum mainnet means that developers are now able to submit audit requests to the Quantstamp protocol through the web portal.
While their product is well on its way towards becoming fully functional, there have been some uncomfortable controversies around the project in the past. It remains to be seen if Quantstamp learned its lessons and if it has enough time/community trust left to redeem itself.
