Why Quantum (QAU) is one of the most undervalued cryptocurrencies spil a deflationary coin, QuantumProject
Cryptocurrencies find themselves te this weird limbo inbetween a currency and a stock. They tend to be neither one or the other and yet retain characteristics that represent elements of both. Many speculative investors have bot attracted by the volatile momentum that has sent profits surging for early investors. Spil the large number of available currencies proceeds to expand, the wedloop remains to find the next big thing.
I’m not here to tell you that Quantum is that next big thing, but I do believe that it presently serves spil one of the most undervalued cryptocurrencies to date based on its future potential. Quantum (QAU) has began off with a very limited amount of exposure, and its ICO closed to little fanfare. It closed its ICO on May 15, 2017 to raise $Four.12 million ter bitcoin through 486 investors. http://www.newsbtc.com/2017/05/16/ethereum-project-quantum-closes-ico-4-12m-funding/
A look at the webstek would seem far from amazing, but it is the plainness of the whitepaper’s concept which should stand out. Speculative investors vereiste understand the underlying premise that Quantum is basing itself on. The project aims to do the following:
- Raise capital by leisurely introducing QAU (total supply is capped).
- Use raised funds te other currencies to provide pool liquidity to the exchanges.
- Use the profits to buyback and demolish QAU.
The very first and third steps are essentially self explanatory. Ultimately, the currency will be using raised capital te other cryptocurrencies to generate profits to further reduce the supply of its own currency. Spil added fiat currency resumes to accrue value ter QAU and spil the total supply of QAU proceeds to decline, the value of QAU itself should proceed to appreciate spil the currency proceeds on its path spil a true deflationary currency. Now typically, deflation might be seen spil being “bad” for most currencies that have economies revolving around them. Yet for QAU, achieving deflation is exactly what is intended – to provide an investment voertuig that benefits both the currency investor and supports the underlying mission of the exchanges ter the crypto markets. QAU serves spil a stepping stone ter providing stability to the crypto markets.
Now how this stability is achieved is based on the 2nd point stated above. It is this point that is less understood by investors. Institutional grade liquidity essentially permit for value to be parked thereby reducing the fluctuations found te movement. What the Quantum Project intends to do is to use its raised funds to participate ter what are essentially risk-neutral arbitrage opportunities ter order to generate profits.
The markets operate by buyers and sellers. But what is often just spil significant are those who buy on margin and short-sell spil well. It is the latter that provide counterweight trading to the former. Just spil is the case te the stock market, margin and short-selling ter the crypto markets is expanding spil a way of providing leveraged opportunities for traders to place their bets. How the Quantum Project remains involved ter this is through their capability to lend out their raised capital ter exchange for rente. For example, if a trader wants to borrow bitcoin ter order to brief it, the trader would take that bitcoin from the pool and terugwedstrijd it at a zometeen date while also paying rente for using it. For the pool, the risk remains limited and income is generated.
There are many novel ideas out there that remain for the crytpo market, but there is a vast difference inbetween an innovative concept that can succeed using a stable currency and a currency that is modeled to generate a terugwedstrijd for the investor. Most currencies will ultimately not appreciate strenuously because doing so will fundamentally start to degrade the underlying verhoging it wasgoed designed for. Spil for QAU, because it wasgoed designed spil a deflationary currency, it’s success is built on the vormgeving of rewarding investors ter the token te order to further provide stability for the crypto markets spil a entire. I end with the currency’s very first destruction event, shown below. Cheers, for more to come…. every month.