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.
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.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether QNT can be supported by Wealthsimple’s platform, including whether QNT is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
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;
- 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; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether QNT, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to QNT may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support 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. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
Additional Risks / Information
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.
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.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: January 1, 2024