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Quadrant Rating Review

Positive

Investment Rating

Expiry date : Expired 12 Sep 2018

Rating

Based on the analysis performed and issues identified we have assigned the Quadrant Protocol project a “Positive” rating. At the time of writing the testnet (MVP) was already available which is a possible indicator of the team’s serious intentions.

The project has the following strengths which are worth noting:

  • Availability of testnet (MVP).

  • Participating in a significant and fast-growing market (the blockchain industry).

  • Highly skilled and vastly experienced founder.

  • Ambitious idea.

  • The economic potential of the token is notable.

However, there are also a number of risks still associated with this ICO project:

Development risks. The team has quite ambitious plans but the length of time between the different stages and milestones could be a possible issue. The length of time between MVP release (which is a significant stage of the project) and other stages is very short. The application, adoption and beta-testing/performance improvement of a product for enterprise use all require significant time and effort from the team.

Unverifiable ICO details on the date of analysis. The smart contract code on GitHub was unavailable for public review and important ICO information (vesting periods, token distribution timelines, bonuses, token burning) could not be verified.

Incomprehensive whitepaper. The whitepaper does not include competitor analysis (although there are no direct competitors discovered), forecasts of marketing activities or plans for product promotion.

Team composition risks. The team has ambitious plans in terms of product complexity. But apart from the founder, the other team members might not have enough experience, as they are all relatively young and most of their job experience comes from working with this founder on another project.

Based on the analysis performed and taking into consideration all of the risks associated with the Quadrant Protocol project as of May 2018, we assign the Quadrant Protocol project a “Positive” rating. The rating may need to be reassessed once further alpha/beta versions of the product are released and feedback on the first testnet is received.

General Information about the Project and ICO


Nowadays there are four major problems facing the data economy:

1. A widening AI data gap between the haves and have-nots.

2. Fake and unauthentic data destroying the usefulness of any algorithm.

3. Unsustainable data feeds breaking production systems when they go offline.

4. Unfair revenue distribution for the original data producers.

Huge amounts of authentic data are needed to power today’s algorithms, however the current data economy is fraught with problems. There is an ever-widening gap between those with the resources to collect and store their own data and those that do not. The data these have-nots do have access to is often fragmented and of questionable authenticity—the kind of data that produces poor results when fed into algorithms. Part of the reason why the data lacks authenticity is because the suppliers of it are not properly incentivized. Without a healthy and transparent data economy, the increasing demand for authentic data will not be met.

Quadrant is a blockchain-based protocol that enables the access to, creation and distribution of data products and services with authenticity and provenance at its core. The data economy is similar to space, unmapped and chaotic. Quadrant serves as the blueprint that provides an organized system for decentralized data.

Quadrant aims to build the data economy around the silos that large data-hoarding companies like Google and Facebook create, which in turn will diminish their power. Quadrant also aims to address the issues with non-transparency in the data industry, which can lead to a lot of fraud, when companies are hiding their sources. With transparency promoted within Quadrant, companies will be able to trace the data sources for compliance purposes, as well as ensure that they get the data they paid for and that it is what they want for their application. Quadrant also ensures that all of the data providers within the value chain receive proper and fair compensation, as the original creators, also known as the nurseries, are often left out when it comes to the profits generated by the data they provide to collectors and companies.

Website

Whitepaper

Medium

MVP (testnet)

Telegram

Twitter

Facebook

Bitcointalk

LinkedIn

YouTube

It is worth noting that according to the company’s public Medium account, the testnet was released on May 14th for review by interested parties.

 

Private sale

ICO (public sale)

Start date

No data

June 26th, 2018

End date

No data (finished)

July 26th, 2018

Stage cap

USD 15,000,000 (reached)

USD 5,000,000

Ticker

eQuad

Token

ERC-20

Token supply (for sale/total)

400,000,000 / 1,000,000,000

Soft cap

USD 3,000,000

Hard cap

USD 20,000,000

Estimated capitalization

USD 50,000,000

Token price

USD 0.05 = 1 eQuad

USD 0.05 = 1 eQuad (ETH will be pegged the day before sale)

Bonus

1st – Strategic 20% bonus, USD 5,000,000 cap

2nd – 10% bonus, USD 5,000,000 cap

3rd – 5% bonus, USD 5,000,000 cap

No bonuses

Lock-ups

No additional lock-up on the purchased tokens, three-month lock-up on the bonuses

N/A

Minimum investment

200 ETH/USD 120 k

Not specified (see below)

Maximum investment

USD 15 mln

Not specified (see below)

Currencies accepted

ETH

Restricted list

USA, Canada, New Zealand, China, South Korea

KYC/AML procedures

Yes/Yes

Country of legislation

Singapore

The Public Sale will be held as follows:

Day 1 — Community Sale

All participants have an equal number of tokens to purchase, with a maximum limit of tokens derived via the following formula:

Total Number of Tokens/Number of Whitelisted Participants

Day 2 — Enhanced Sale

Individual limits will be increased, as per the following formula:

Total Number of Tokens/Number of Whitelisted participants + 100 ETH worth of eQuads

Day 3 and after — Open Sale

All individual limits will be removed. Only limitation is the number of eQuad tokens left for purchase.

The team has also launched a Bounty campaign in order to reward its supporters with eQuad tokens. A total of USD 100,000 will be allocated to the Bounty Pool. The program will run until the end of the Token Sale. The bounties will be paid within 30 days after the end of the Token Sale. Assuming that the Hard cap is reached, only 0.5% оf the tokens for sale will be allocated to the bounty program which will not have an impact on the token price.

Campaign

Amount

Twitter

7,5%

Translation & Moderation

5,0%

Signature

20,0%

Facebook

7,5%

Lin

5,0%

Steemit

5,0%

Content creation

35,0%

YouTube

2,5%

Telegram

5,0%

CryptoCompare

2,5%

Bonus

5,0%

Total

100,0%

All further details related to stakes earnings are available in the link.

Unsold eQuad tokens will be held in a reserve for a future token sale to be held no sooner than 2 years after the close of the Public Sale.

The team specifies the following vesting terms:

If the TGE raises over $7,000,000 USD, the contributions garnered will be locked initially and made transferrable over the course of 4 years, with 40% becoming available for sale upon the close of the eQuad token sale and the remaining 60% released annually to be applied towards the Company's objects at a fixed rate of 15%. This is intended to ensure the long-term success of Quadrant while instilling practicality to ensure no over-spending in the initial years. All tokens purchased during the private and public sale will unlock at the same time. The bonus tokens from the private sale will be distributed after 3 months (3 month lock up on bonus for token purchasers).

Therefore, team’s tokens are vesting over 5 years. Advisors: variable, up to 9 months’ vesting. ICO participants: up to 30 days’ lock on bonus.

The team forecasts the use of proceeds from the ICO to be as follows:

Details of the allocation are as follows:

  • R&D – 30% will be allocated to the building of the network, building SDKs for different applications (including mobile and IoT), creating front-end interfaces for the creation of Constellations, creating a portal interface for purchasing data products and creating clients for accessing and reading the chain.

  • Business & Network Development – 35% will be allocated to creating programs to encourage high-quality data to be brought to the network. This includes a special program for the development of Elons. Based on the years of experience that the Quadrant Protocol team possesses, it will prioritize filling the missing data gaps in the market. The Quadrant Protocol team will also foster innovative usage cases and solutions based on the data available in the network. This is intended to help more sellers in bringing high quality data to the network.

  • Operations & Security – 25% will be allocated to daily operations, the running of nodes, network security and the security of Constellations on the network.

  • Legal, Accounting & Compliance – 5% will be allocated to ensure that frameworks are in place for data licensing and that all accounting and compliance is done correctly.

  • Treasury – 5% will be allocated to ensure the smooth running of the system and that no one is shut out or unable to use the services due to the lack of availability of tokens. 

We note that intended distribution of funds between R&D, Business & Network Development, Operations & Security, Treasury, and Legal, Accounting & Compliance is healthy, taking into account the project’s nature and its key features and current stage of development.

We believe that the whitepaper has the following problem:

  • Forecasts of marketing activities and plans for product promotion are not covered in the whitepaper, and it is impossible to analyze or draw the relevant conclusions regarding potential market exposure without them.

Description of the Project Services


Quadrant operates as a sidechain, on their own PoA chain with its own native token. Quadrant is releasing an ERC20 token for the purposes of the sale, which will interact with a gateway between the chains.

Quadrant will operate on a Proof of Authority consensus mechanism to handle more transactions, operate at a lower gas price, achieve faster transactions, and restrict malicious nodes from entering the data. An external Proof of Work chain will also be used as an anchor for security purposes.

PoA is secure, can handle the transaction volumes we require and the enterprise use case Quadrant is solving for. Quadrant is PoA and can anchor into any public chain. They will start with an Ethereum anchor, but can change to any network if needed.

Proof of Authority (PoA) pros & cons

Proof of Work (PoW) vs Proof of Stake (PoS)

Even Ethereum is migrating away from using Proof of Work to the more energy and economically efficient Proof of Stake. With so many new alternatives, it’s hard to see why a new blockchain would use PoW. We note that the team has informed us that they are able to migrate from Ethereum platform to any other platform if need be.

Description of Services & Their Applicability


The Quadrant Protocol is a blockchain-based network protocol that enables the access to, creation and distribution of data products and services with authenticity and provenance at its core. It is envisioned to act as a blueprint that provides an organized system for the utilization of decentralized data.

The architecture consists of the core Quadrant blockchain, clients (Data Producer, Data Consumer and Anchor) and Guardian Nodes. Quadrant will operate on a Proof of Authority consensus mechanism so that it can handle more transactions, operate at a lower gas price, achieve faster transactions and restrict malicious nodes from entering data into the network. An external Proof of Work chain will also be used as an anchor for security purposes. For the time being, the Ethereum blockchain will be used for anchoring but it can be replaced by any public chain in the future if needed.

Quadrant will have the following initial features and services:

  • Data Stamping Protocol.

  • Stamp Verification.

  • Open Constellations.

  • Network Nodes and Clients.

  • Data Enhancement by Elons.

  • Public Chain Anchors.

Features

Quadrant is intended to have the following features that are aimed at helping to solve the problems in the data economy:

  • Proof of Data Authenticity and Provenance.

  • Constellations for Disparate Data Sources.

  • Fair Remuneration and Incentive Sharing.

MVP (testnet)

Quadrant’s testnet and the project’s first feature, data stamping, has been operating successfully over the last few weeks, stamping a client’s live data feed.

Data stamping is designed to provide data authenticity from the data source to the data consumer, which acts as the fundamental layer of trust in the network. By putting a data signature on the block, the Quadrant Protocol will be able to track the movements of the data and understand where there have been manipulations. This is set up to ensure data authenticity and help track provenance for compliance applications.

During the extended tests the team was working with a real prototype for one of the clients.

Testnet scenario:

Technical Next Steps

With the throughput and real-client use case validated, the next steps will be to continue to test the strength and security of the Producer Client against other data feed scenarios and launch the mainnet.

Roadmap


The team provides the following project roadmap:

The testnet was already available at the time of review, having been released on May 14th, so the risk for potential investors is reduced when compared to projects without an MVP before/during their ICO.

The disadvantage of this roadmap is that it only covers the technical aspects of the project and does not lay out the business development process – e.g. when and how marketing activities will be performed, how many users the platform the company intends to reach by the end of 2019 and in Q1 2020, etc.

Market Outlook


The International Data Corporation (IDC) valued the revenue of Global Big Data and Business Analytics at USD 130.1 billion annually in 2016. This number is expected to grow to over USD 200 billion by 2020. Companies, especially those working with AI, have proven to have an insatiable appetite for data from an ever-increasing variety of sources. The Dresner Advisory Services estimates that some 53% of companies used big data for analytics purposes in 2017, an increase of 36% from 2015. These companies are using the data to solve complex problems, detect trends and create new products that they will introduce to the market.

Data marketplaces and middlemen are already accessible to everyone. However, these entities often hide their sources and intentionally make the waters murky. Their reasoning is understandable, they need to ensure a competitive edge by not giving what they have to others. Nothing about this approach makes the world a better place, there are other ways to compete. Quadrant, by virtue of its decentralized model, is aimed at differentiating itself by providing the framework for authentic and trustworthy data, as well as compliant data, so that when the government knocks on the door of Data Consumers asking where they obtained their data, they can answer with confidence. Companies will see the value added by this approach and opt to move away from the shady and murky marketplaces.

Where Quadrant is designed to really stand out from competitors like Ocean, Streamr, Synapse AI and IOTA, is by providing Elons with the opportunity to innovate using a diverse array of mapped data sources. Pioneers are intended to create data products based on data provided by Nurseries. Elons can then take those products, find linkages and create mega Constellations that can be used by companies to effect real change in the world, all while being fairly compensated. We have prepared the following summary table below:

Industry rivalry:

 

Quadrant Protocol

Ocean Protocol

Streamr

Synapse AI

Ticker

eQuad

Ocean Token (native)

DATA

SYN

Key functions/features

Proof of Data Authenticity and Provenance, Constellations for Disparate Data Sources, Fair Remuneration and Incentive Sharing.

Decentralized data exchange protocol powered by blockchain technology and a native token.

Cloud based platform which runs real time data analysis and provides visually appealing applications that display the information in a way that is clear and easy to understand.

Decentralized data and machine learning marketplace and exchange protocol. This will allow anyone to contribute data, train machine learning models, and be compensated for both.

Key users

Developers, enterprises, consumers, vendors and security experts.

Data contributors, data users, solution developers and technology providers.

Enterprises, developers, users.

Agents requesting, collecting, contributing & brokering data, Agents training, confirming & using models, Agents contracting one another autonomously.

Key products

Data Stamping Protocol, Stamp Verification, Open Constellations, Network Nodes and Clients, Data Enhancement by Elons, Public Chain Anchors.

Ecosystem for sharing data and associated services.

Data marketplace for streaming IoT data - service that specializes in creating real time data processing applications that run on its advanced cloud-based platform.

Secure exchange between agents and their data, services & machine learning models, own wallet.

Development stage

Testnet released.

Tethys beta to be released Q4 2018.

Product video released.

SYN utility token developed.

ICO status

Presale round finished.

Ended.

Ended.

Ongoing.

Funds collected as of ICO date/Hard cap

Unknown/ USD 20m

USD 22.1m / USD 22.1m

USD 27m / USD 27m

N/A / USD 50m

Percentage of tokens for sale

40%

15%

49%

33%

Valuation on date of ICO

USD 50m

USD 147.3m

USD 55m

USD 150m

Market capitalization

N/A

N/A

USD 65.8m

N/A

It is worth noting that all of the above competitors have valued themselves higher than Quadrant while offering less features or being in an earlier stage of development. Given that Quadrant offers more features and has already released a testnet, we believe that it is more likely than not that the Quadrant project has a great opportunity for future growth.

As it was announced during AMA, there always are competitors, but it all depends what part of competitions, your competitor can also be your partner. Data supply or data marketplace, may sell data directly, not on the protocol, but also can provide via the protocol. Any project that says “Data Marketplace” could also be a supplier and user of the protocol.

The data economy is complex. In the Blockchain space, Ocean Protocol is Quadrant’s biggest competitor. There are fundamental differences both in the structure of the company and approach to the data economy. Ocean creates a protocol for data marketplaces. They have a new consensus method and tackle issues that over the last 4 years operating a data marketplace, Quadrant doesn’t see as an issue.

Quadrant Protocol, is not a data marketplace, but rather a protocol to enable authenticity and provenance when transacting data. It can be used by marketplaces, but also by direct transactions between organizations. Quadrant focuses on providing the infrastructure and mechanisms to enable a transparent data economy.

One group of companies, data marketplaces, like AirBloc and Fysical, as well as data monetization companies are considered potential partners and users of Quadrant.

However, there is still one issue with the whitepaper:

  • Absence of competitor analysis.

Team


Quadrant is a blockchain-based protocol that enables the access to, creation, and distribution of data products and services with authenticity and provenance at its core. It seems technically complicated and we’d like to draw attention to the fact that the ability of the team to deliver such a complex project can be witnessed as the MVP has already been released. If the testnet hadn’t yet been released, we would have doubted the sufficiency of the project team’s experience, as is illustrated in the table below:

Name

Position

Total experience

Relevant experience

Relevant education

Professional achievements

LinkedIn

Connections

Endorsements/ Recommendations

Team

Mike Davie

CEO and Founder

10+ years

Yes

Yes

Founder & CEO of DataStreamX.

Speaker at ICT and Big Data conferences 2014 – 2017.

Yes

500+

Yes

Barkha Jasani

Head of Research & Technical Development

10 years

Yes (mostly at DataStreamX)

Yes

National Award for building e-Governance portal for RPSC

Yes

288

Yes

Sharique Azam

Big Data Architect & Blockchain Engineer

5+ years

Yes (mostly at DataStreamX)

Yes

Winner Tech in Asia Hackathon 2014 Singapore.

 

Winner NUS iCreate Mobility Challenge 2014 - InfiniteLoopers (Team).

 

Yes

500+

Yes

Roger Ganga

Data Scientist & Blockchain Developer

2 years

Yes (mostly at DataStreamX)

Yes

Certificate in Ethereum: Decentralized Application Design & Development – License UC-TUoAEG7X.

Yes

500+

Yes

Marlina Farhin

Front End Developer

2 years

Yes (mostly at DataStreamX

Yes (Rajalakshmi Engineering College)

-

Yes

22

No

Navas Khan

Head of Marketing

4+ years

Yes (mostly at DataStreamX

Yes (Singapore Polytechnic and London School of Economics and Political Science

-

Yes

262

Yes

Nikos Kostopoulos

EU Community Manager

4+ years

Yes (as a Community Manager)

Yes (Political Science & International relations)

Best conference organizer of the year (2014)

 

Yes

500+

No

Key project’s advisors

Dorjee Sun

Community Advisor

15+ years

15+ years (Distributed ledger technology consultant. Currently advising Quadrant Protocol, Devery.io, Loki, Blue Frontiers, Airbloc, etc.)

Yes (University of New South Wales – Commercial degree & Law degree)

-

Yes

500+

Yes

Benedict Chan

Technical Advisor

10+ years

Yes

Yes (UNSW – Computer Science, Networking, Quality of Service)

-

Yes

500+

Yes -

Hari Krishnan

Strategic Growth Advisor

15+ years

Yes (currently also advising billionBRICKS, DataStreamX, and HackerTrail. Quadrant Protocol is not on the list but we can see DataStreamX there)

Yes

Distinguished Alumni of the VESIT Alumni Association.

 

Tomorrow's Business Leaders – Speaker (2012).

Yes

500+

Yes

Everett Leonidas

Corporate Partnerships Advisor

10+ years

Yes (currently advising Quadrant Protocol, DataStreamX, Biofourmis, etc.)

Yes (MBA from Berkeley, University of California in Global Management, Marketing, Technology)

2 publications (2015):

- Practical Guide to Selecting and Structuring Data Products.

 

- Practical Guide to Pricing Data Products.

 

Yes

500+

Yes

Jeremy Seow

Market Advisor

8+ years

Yes (Partner at ChainRock. Previously worked as a Senior Product Manager at Zendesk where he built and shipped the Zendesk Message product.

 

No (BA in Communications and Media Studies from the University of Singapore)

-

Yes

500+

No

Whit Walker

Market Advisor

10+ years

Yes

Yes

4 projects

7 publications

Yes

500+

Yes

Pavel Bains

Technical advisor

20+ years

Yes

No (Financial analyst, BA in Marketing & International Business)

2 projects (500 startups and TIE Vancouver).

6 publications

Yes

500+

Yes

We note that the Quadrant team has established a group of commercial partners and allies, including but not limited to Bluezell and Kenetic Capital, which gives them a strong position.

Quadrant has the following partners: AmaZix, bluzelle, Chainrock, Wavemaker, Kenetic, etc.

AmaZix, world’s leading community management and engagement firm, also moderate official Telegram channel of the project, they have managed some of the largest ICOs in history including Bancor, BANKEX and Hdac, etc.

Bluzelle is a decentralized, on-demand, scalable database for dApps. he team has already built trusted blockchain tech for enterprise-level businesses including Microsoft, HSBC, AIA & KPMG.

Chainrock - global advisory and investment firm focused on digital assets and emerging blockchain technology.

Wavemaker -  crossborder early stage VC firm, dual headquartered in LA/Singapore, focused on seed stage technology startup opportunities.

Kenetic is a blockchain firm with diverse & robust range of projects and investments, committed to expanding the development and adoption of blockchain platforms through investments, advisory services, community, and technology. Kenetic has a world-class team and network of partners and advisors across their platform of services.

Draper venture network - self-governed organization of independent venture funds that cooperate on investment diligence, marketing intelligence, corporate relationships, and co-investments.

Openspace ventures makes investments in early-stage technology companies based in Southeast Asia.

Token Analytics


Quadrant will use two different currencies for its network: eQuad and QUAD. QUAD is a utility token designed to be used solely on the network. It will be used to stamp data, support simple and complex access structures, simple and complex subscription payments, and for staking by Elons. eQuad is an ERC-20-compliant token that will be sold during the Token Generation Event (TGE). It may be converted into QUAD via a gateway once the Quadrant mainnet is launched.

The supply of ERC-20 tokens is fixed at 1,000,000,000 tokens. Any unsold tokens will be held in a reserve for a future token sale to be held no sooner than 2 years after the close of the Public Sale.

Quadrant maps disparate data sources so that new, innovative data products can potentially be created to help companies meet their data needs.

This is intended to be made possible through the participation of the following stakeholders:

  • Nurseries— the Atomic Data Producers (ADPs) that create the original data records. They create Stars (raw data), which can then be grouped into Constellations.

  • Pioneers— the Data Vendors that create data products with the smart contracts on Quadrant.

  • Elons— the visionaries that utilize the created data products and with them, build new and unique products and services. They rely on Constellations and Constellation blueprints to make sense of the data space, which they will travel through.

  • Guardians— the master nodes that protect the integrity of the chain, ensuring that it is not compromised. The Guardians ensure that the Constellations created by the Pioneers are not compromised and provide the services of stamping, authenticating and verifying data.

Widespread Token Distribution

New use cases are projected to emerge in which individual devices and sensors are rewarded for their data contributions. Applications that source data from the IoT or mobile devices require millions of individual endpoints to produce useful data products. Each of these endpoints will require compensation in the form of micro-payments. These payments will be made using the QUAD token.

Payment method

Quadrant will be run similar to a non-profit system. It will use the Ethereum gas model to ensure the sustainability of the network without charging excessive fees in order to obtain a profit. When Nurseries stamp, they pay a small amount of QUAD which goes to the Guardians as an incentive for maintaining the nodes within the network. Users will pay with QUAD to create Constellations but the total payment for the data within the Constellations will go to their owner(s). 

Token details

The Quadrant Network will utilize two different currencies for its protocol: eQuad and QUAD. The native digital cryptographically-secured utility token of the Quadrant Network (QUAD) is a major component of the Quadrant ecosystem and is designed to be used solely on the network. eQuad is an ERC-20 standard compliant digital token on the Ethereum blockchain which can be sold, and which may be converted into QUAD via a gateway once the Quadrant mainnet is launched.

QUAD is a non-refundable functional utility token which will be used as the unit of exchange between participants of the Quadrant network.

eQuad and QUAD Economics

The eQuad and QUAD tokens are designed to complement each other in order to keep the network running.


The token economy is quite clear and well detailed.

 

Stage

Details

Purchasing QUAD

Committing activities to the Quadrant network requires QUAD. Users can purchase eQuad through the initial crowd-sale. They can then convert their eQuad to QUAD for use on the Quadrant network. The gateway conversion will be 1:1 from eQuad to QUAD. Further token acquisition channels will be announced at a future date.

Enabling Simple and Complex Access Structures

QUAD will be used as the medium of exchange for services and the settlement of transactions on the Quadrant network. Both the stamping and verification processes for authenticating data and the execution of Constellations require QUAD in order to be processed. QUAD will be used to purchase data, while Pioneers will receive QUAD as remuneration. At first, fiat currency may also be used to settle transactions, however this will be phased out as the ecosystem develops. Elons will stake QUAD for access to datasets for experimentation and trials. Pioneers will enable multiple tiers at different staking levels. Additional services that also require QUAD for settlement may be added to the Quadrant network over time.

Stamping and Verifying Data

QUAD will be used to submit stamps to the network. These payments will be paid to the Guardian Nodes as incentives for verifying the transactions and submitting proof to the Quadrant network. Data Consumers and Elons will be able to verify the data in the Quadrant network via open-source clients.

Simple Subscription Payments

QUAD is required for executing Constellations. Payments will go to the Guardian Nodes. The value in QUAD of the data being transacted will be set by the Pioneer (the entity that created the Constellation) and received from the Data Consumer. For standardized data products, Pioneers can price their data in QUAD, either by pegging or floating it to a fiat currency.

Complex Subscription Payments

Making payments through a single data value chain involves high administrative costs. This means cross-board transactions are extremely expensive and, thus, giving the rightful ADP its fair share is next to impossible. Wiring someone $25 costs about $25 and that does not include any loss on currency swaps. QUAD intends to solve this problem. Minimum transaction fees are established in the Constellations, so when an aggregated data product is purchased, the entire value chain can be remunerated. This is done instantaneously and without the need for burdensome administration.


Reporting

To ensure transparency, semi-annual reports will be made available to the public on the usage and distribution programs of eQuad.

In relation to economics, we believe that the project’s whitepaper has the following problem:

●       Token and project economics could be clearer (e.g. fees are not specified).

Token Price Factor Analysis

 


Factor

Description

Price effect

Development and release of new products according to the roadmap

The Quadrant Protocol ICO is expected to take place in Q2 2018. The MVP (testnet) has already been released on May 14th. Products will be released in stages sometime between Q2 2018 and Q1 2020. Whether or not the team meets those milestones and the degree of the product development at each stage will drive the token price up or down.

Demand for the platform

Quadrant is a blockchain-based protocol that enables the access to, creation, and distribution of data products and services with authenticity and provenance at its core. The data economy is similar to space, unmapped and chaotic. Quadrant serves as a blueprint that provides an organized system for the utilization of decentralized data. At the time of analysis (May 2018) it is hard to predict the demand for the platform, as it is not due to be released until 2019. Nevertheless, the need for a data verification solution grows at an incredible pace along with the growth of the blockchain market.

Sales of tokens by the team, crowd-sale, etc.

40% Crowd-sale, 20% to be held by Company, 20% Stakeholders, 10% Reserve, 10% Team.

All eQuad not sold during the Private Sale and Public Sale will be held in the reserve of the Company for a minimum of two (2) years from the close of the initial Public Sale. These will be used for future token sales in order to support the expansion of the network and its technology.

Sales of tokens by private sale investors

Assuming that USD 7,000,000 has been raised during the private sale and there were 3-month lock-ups at that time, there is some risk that as soon as the token appears on the stock exchange, investors from pre-sale will want to sell their tokens.

Limited token supply

Assuming that the company develops as intended and the demand for the solution is sufficient, a limited token supply can result in a long-term deflation of the token price.

Volatility of cryptomarket

Although the platform, token and product do not seem to have speculative purposes, the high volatility of cryptomarkets may cause traders and speculative investors to trade eQuad, which may lead to token price fluctuations for the token or even speculative activities (pump & dump, etc.).

Investment Risk Analysis

 


Risk

Description

Level

Smart contract code not available for review

There are links to GitHub through the whitepaper, but the link itself is not provided and the account is impossible to find in open sources. We note that it is impossible to review the contract for the ICO.

Medium

Development risk

The team has quite ambitious plans concerning the length of time between the different stages. Between the MVP release (which is a significant stage of the project) and other stages there is a very short amount of time. The application, adoption and beta-testing/performance improvement of a product for enterprise use all require significant time and effort from the team.

Medium

Incomprehensive whitepaper

We believe that the whitepaper has the following issues:

● Absence of competitor analysis.

● Whitepaper doesn’t include information about bonuses, all data was received from the Project team.

● Forecasts of marketing activities and plans for product promotion are not covered in the whitepaper and it is impossible to analyze or draw the relevant conclusions regarding potential market exposure without them.

Medium

Team composition and expertise

The team has ambitious plans in terms of product complexity. Apart from the founder, the other team members appear to have limited experience, as they are all relatively young & their job experience consists of mainly working for this founder on a different project. But since they already have the testnet (MVP) available, their expertise must be decent and we can downgrade this risk to Medium.

Medium

Legal/commercial risks

Data reliability and information security are extremely significant issues for all countries and industries, and all stakeholders around the world might be interested in the internal details. However, blockchain is a solution designed for reliability and security.

Medium/Low

Decrease in token price

There are no fundamental factors indicating that the token price will face significant pressure and the bonuses are relatively low. However, the team does not disclose the amount of funds raised during the presale round and the terms of the ICO are still unknown, so the exact number of tokens sold with a discount is unclear.

Low

Incomprehensive roadmap

The roadmap only covers the technical aspects of the project, and does not specify the business development process in much detail or the team’s plans regarding market coverage/number of platform users, etc. We note that there are some business-related milestones on the roadmap, but we believe that there might be more than what’s mentioned.

Low

MVP

The testnet has just been released so currently there is no comprehensive feedback or response.

Low

 

The information contained in the document is for informational purposes only. ICORating received monetary compensation in the amount of $16092 from the entity rated in this report for completing the ratings report. However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published. The views expressed in this document are solely those of the ICORating Team, based on data obtained from open access and information that developers provided to the team through Skype, email or other means of communication. Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.