What is Quant?
Quant Network allows the creation of Multi-DLT applications “mDapps” that enable decentralized applications to operate on multiple blockchains at once. QNT is a token on the Quant blockchain that provides digital access to a particular application or service offered by the networks brand of enterprise software solutions known as - Overledger. QNT token holders are then given access fees based on a fixed fiat currency amount.
The Overledger network is a form of Distributed Ledger Technology (DLT) designed for universal enterprise interoperability. This platform aims to provide a decentralized “network of networks” that can infuse existing enterprise technology with decentralized elements. By interconnecting private and public data while maintaining the security and speed required by global enterprise organizations, Quant aims to contribute to the development of a fair and transparent global financial system, while providing a new layer of value and utility for legacy organizations. The system uses an application programming interface (API) designed for financial services for banks including stablecoin minting, CBDCs, supply chain management, payments and micropayments, marketplace creation, and invoice financing. Overledger also allows developers to create applications on Bitcoin, Ethereum, and Ripple as well as for enterprise uses such as on R3’s Corda, and Hyperledger’s Besu and Fabric platforms.
On the technical side, QNT is an ERC-20 utility token used to power the Quant Network’s enterprise software solutions. One of Quant’s use cases concerns Multi Ledger Tokens (MLT) for Central Banks, banks, fintech, trading consortia, closed-loop payments, marketplaces and micropayment platforms. Multi-Ledger Tokens (MLTs) are specialized tokens employed by the Quant Overledger interoperability blockchain platform. MLTs are used to create stablecoins that are compatible with different blockchains, as well as supporting the deployment of central bank digital currencies (CBDCs).
The total fixed supply of QNT is fixed at 14,612,493.
How does QNT compare to Bitcoin?
QNT differs from Bitcoin in a few important ways.
First, Bitcoin is a “coin” and QNT is a “token.” That is because Bitcoin powers the Bitcoin blockchain, and it is mined by a decentralized network of computers that solve complicated maths puzzles to verify transactions. By contrast, QNT is a token that runs on the Ethereum blockchain. On Ethereum, ETH is the only coin that can be mined and miners mine ETH to process QNT transactions. It is what is known as an ERC-20 token, the name applied to the generic token standard for the Ethereum blockchain.
Being an ERC-20 token has perks. Blockchains aren’t great at speaking to each other—you can’t get an Ethereum contract to work with a Bitcoin smart contract without some complicated engineering. However, it’s very easy for ERC-20 tokens to speak to one another, which means that QNT can be used in most other decentralized finance applications.
Additionally, unlike Bitcoin, QNT is a governance and utility token. While, like Bitcoin, QNT can be used as a means of payment or a store of value, its market price may be very volatile and so it may not be useful for payments or storing value.
Finally, QNT’s market capitalization is smaller than Bitcoin’s. As of April 2022, QNT’s market capitalization was estimated to be $1.6 billion, as compared to Bitcoin’s market capitalization of $800 billion.
Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset. First and foremost:
No Canadian securities regulatory authority has expressed an opinion about QNT, including an opinion that QNT is not itself a security and/or derivative.
Wealthsimple has performed a legal assessment of QNT prior to making it available on Wealthsimple Crypto and has concluded that QNT is not and is unlikely to be deemed a security or derivative. However, there is a risk that this conclusion could change in the future and the impact of this on an asset’s value is outlined in our Product Disclosure.
We evaluated QNT based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of QNT, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created QNT;
- The supply, demand, maturity, utility and liquidity of QNT;
- Material technical risks associated with QNT, including any code defects, security breaches and other threats concerning QNT and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them; and
- Legal and regulatory risks associated with QNT, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of QNT.
Like all other crypto assets, there are some general risks to investing in QNT. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Each of these risks are described in more detail in our in-app Product Disclosure.
The QNT token is used as a means of payment within the Overledger network. The Overledger network appears to be dependent on Quant Network, which created the enterprise software underpinning the Overledger network and collects licensing fees from users of that software. The risks associated with this token are centred on the notion that if Quant Network Limited were to cease operations, it is unclear whether Overledger network would continue to operate and whether QNT would continue to have utility and value.
Further to these general risks, the QNT community, Overledger development team and other affiliated entities are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of QNT have no recourse to the Quant Network, Overledger or Wealthsimple if QNT declines in value for any reason.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading QNT. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
WDA is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Digital Assets Inc. dated June 18, 2021. Please be aware that the statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply to a misrepresentation in this Statement.
Last updated: April 28, 2022