The cryptocurrency ecosystem has a bright future. Innovation is abundant, talent is flocking to blockchain projects and the world is experiencing a multi-year digital gold rush. Developers are just scratching the surface of all possible applications to improve “internet 2.0” and theoretical use cases are quickly turning into real-world use cases. As crypto slowly shifts from purely speculative investments to a tangible usage-based cryptocurrency pricing environment, there still remain many challenges which must be overcome for meaningful mass adoption.
1. Storage of wealth (SOW)
2. Utility Tokens (UT)
In this ideal future world, there would be one common world currency which would serve as the SOW (eg. Bitcoin). There would then be thousands, maybe millions one day, of different UT which provide services in exchange for the UT. The exchange between SOW and UT is seamless. For example: To purchase network data storage, you one would simply spend your SOW (Bitcoin) on the storage UT. Your wealth is reduced and you now have UT which are immediately redeemed for the storage you desired.
Today, we already have both of the fundamental building blocks (SOW & UT) that are essential for a working ecosystem. However, the breakdown in the simple example above is the exchange of value (EOV). As each UT is unique and specific to its own network, it can only be redeemed for the services provided by the UT. If any other usage/service is desired by the UT holder, an EOV must take place. This step is where our current ecosystem breaks down. Why? We are still in the early phases and the technology development has not yet has the opportunity to address many of the challenges that come along with a revolution this powerful and widespread. We’re still using the barter system, like early settlers in America did nearly 400 years ago. If you want UT-A and currently own UT-B, there are only two ways to accomplish this EOV:
1. Find someone (or many people) who own UT-A and are willing to take UT-B in exchange. In other words, make a trade with an entity wanting the exact opposite of what you want.
2. Use an intermediary SOW which is more broadly accepted to increase the liquidity of the desired token. Trade UT-B for SOW, then trade SOW for UT-A.
Although option #2 provides better liquidity for obtaining UT-A, there are now two separate trades which must be matched in order to accomplish what is needed.
The marketplace which provides a forum for trade-matching is an exchange. Countless exchanges exist today, all offering different trading pair platforms and a widely varying list of UT. These exchanges link up holders of SOW and UT and allow for EOV to take place through the use of trade-matching books. As things stand today, however, these trade books are view able and usable only to those SOW/UT holders on that individual exchange. There is no interoperability between these exchanges and thus liquidity for an asset is dependent on the exchange only, not the overall cryptocurrency ecosystem. This inherent flaw which prevents seamless EOV is one that must be addressed prior to seeing mass cryptocurrency adoption.
Though the model with only two fundamental currency types works in an ideal world, this model hinges on the fact that the EOV between SOW and UT is seamless. Unfortunately, we all know that this is not the case today. Enter $QASH/Liquid — the project which aims as solving the liquidity issue for a sustainable and usable ecosystem.
The Liquid platform, by Quoine, plans to provide a bridge between SOW and UT. The team expects to break down the walls between independently operated exchanges through their World Book, currently scheduled for official launch in 2Q 2018. This alone should close a major gap that exists today, but the team at Quoine has challenged themselves to think even bigger. They have created an innovative trading process which makes mismatched trades possible through the use of their Cross Currency Conversion Engine (CCCE).
The CCCE functionality is revolutionary and will enable the following trades to take place:
Person A: Trades UT-A for UT-B
Person B: Trades UT-C for UT-D
To better understand how this can be made possible — the $QASH white paper can be found at the Liquid website and describes the mechanics of this process in detail. The above example could include any combination of fiat currency, SOW coins and UT. The CCCE uses FX conversion rates for fiat and current crypto market conversion rates to execute mismatched trades. By combining the existing exchange liquidity into their World Book and also enhancing the trade-matching algorithms, the Liquid platform has the potential to provide massive value for the overall decentralized currency economy.
If this wasn’t enough reason to get excited about $QASH, consider these top 10 reasons Quoine CEO Mike Kayamori and his team should succeed in making it a top 3 coin with respect to market cap:
1. The Liquid Platform will also make fiat-to-crypto conversions more seamless than ever before, decreasing the barrier to entry for new money to flow into the crypto economy. Creating an easy-to-use gateway for new participants to purchase crypto assets with fiat will attract a substantial amount of traffic.
2. Quoine is the first global crypto fintech company to receive a license from the Japan Financial Services Agency (JFSA). It is also one of a few select cryptocurrency projects that is audited — Quoine has worked closely with a Big 4 firm for its external auditing and has completed an in-depth review as part of the licensing process with the JFSA. The team has a heavy focus on compliance & security, with processes in place to ensure that they are adhering to KYC/AML requirements as well as FATF guidelines depending on the jurisdiction. As regulatory measures have continued to tighten, the team has created a robust regulator-friendly platform leveraging their global financial sector experience.
3. The platform will allow for automated trading strategies (trading bots). In addition to allowing bot deployment, the platform will also serve as a marketplace for automated trading strategies. Trading system developers will be able to sell their automated trading strategies for others to employ using a profit % or flat-fee model.
4. Though $QASH is currently an ERC-20 token (powered by the Ethereum blockchain), in 2Q2019 the QASH blockchain will launch. By creating its own blockchain, it will break free of the many limitations which are inherent to ERC-20 tokens. The QASH blockchain will be specifically tailored to financial services, allowing to address important issues such as regulatory compliance, counterparty risk, & information leakage.
5. The project is financially secure (for many years). With one of the$QASH had one of the most successful token sales to date and attracted investment by the richest man (and his brother) in Japan. The project is cash-rich and has secured the critical resources to develop and grow a large-scale operation.
6. A banking license is part of the roadmap (3Q 2019). This will increase the flexibility they have with respect to management of fiat currency. Though a long way out in crypto-time, the services offered with a banking license in hand will provide another large market and increased demand in the future for the $QASH token.
7. The increased liquidity that will result from the World Book will limit the arbitrage opportunities and ensure that users are taking advantage of the best possible conversion rates/prices available.
8. Quoine has already secured important partnerships with some of the biggest global exchanges — Bithumb, Bitfinex, Binance, Cex.io, etc. Additionally, they have leveraged their traditional finance experience to form partnerships in the banking sector as well.
9. The World Book may not be limited to cryptocurrencies. There is capability for this platform to include other tradable assets such as commodities and stocks as well.
10. This project is still widely unknown outside of Japan. Once the Liquid World Book is officially launched in 2Q2018, global exposure to this project is expected to accelerate substantially.
Questioning whether the team under CEO Mike Kayamori can execute on these lofty goals? This team has over a century of combined experience at some of the most respected financial and technology corporations in the world (Softbank, Goldman, Yahoo Japan, etc). They have already successfully created two working exchanges (Quoinex & Qryptos). Is there any doubt that an all-star team will be able to execute on their goals over the next few years and become a powerhouse in this market?
From a valuation standpoint, the $QASH market cap (MC) is currently ~$287M, which ranks as the 69th highest crypto asset as of March 2018. At $0.82 per $QASH token, the value is nearly unchanged from the token sale price, down over 65% from the ATH (in USD).
Given the prospect for $QASH becoming an integral element to the entire decentralized digital economy, it appears to be extremely undervalued. The usage growth should soar over the next two years as we see the release of Liquid World Book & Prime Brokerage Services.
In summary: Long-term winners will make services more affordable & easier to access for the masses. This team’s mission, to make the EOV process more efficient and seamless, targets to solve a major hurdle to gaining mass adoption for cryptocurrency globally. With a sound approach, the financial backing & a dedicated team behind it, $QASH appears destined for success in a space which should see massive growth in the coming years.
Twitter Link to Author: El Crypto Chapo
Disclaimer:
An investment in any strategy involves a high degree of risk. There is the possibility of loss and all investment involves risk including the loss of principal. Any projections, forecasts and estimates are necessarily speculative in nature. Matters they describe are subject to known (and unknown) risks, uncertainties and other unpredictable factors, many of which are beyond my knowledge or control. Any data, calculations, or qualitative statements about the present or past may be erroneous. No representations or warranties are made as to the accuracy, reliability, or completeness of any statements. All information is provided “as is”, without any warranty of any kind. All statements are my personal opinion, unless otherwise specified.
I currently hold $QASH in my portfolio.
