Despite the huge amount of hype, AMAs, and the deployment of a plethora of sycophants patrolling Telegram, Reddit etc., Liquid ICO has returned absolutely zero value to investors, and everything promised in their 2017 white paper remains undelivered.
Buyers who threw more than 100m USD into Quoine coffers are now left with a coin valued at less than a quarter of its initial offer, and no use for it.
Most disappointingly, ICO proceedings have not been allocated as promised, and the Liquid team is just using them for its own purposes.
Quoine (Liquid) is a healthy exchange, and the likelihood of seeing funds returned is very realistic if a legal class action is put forward.
This class action is accepting class members
It is staggering to see the difference between what the white paper promised to ICO investors in 2017 and what Quoine team has actually achieved.
As the crux of its master plan, Liquid planned to aggregate all major crypto exchanges into a single world order book and use Forex exchanges to blend order books across different FIAT currencies. Supercomputers would be able to process astronomical numbers of trades at the speed of light, Liquid and Qash were just about to conquer the imminent future of all crypto exchanges and global crypto trading.
This idea crashed when the Quoine Team realised that they also needed to move FIAT across accounts to make that work, and FIAT transactions are much slower than digital ones.
More than one year has passed since then and, not surprisingly, not a single point of the white paper has been accomplished; Quoine/Liquid is now just an exchange which has simply lost some of its market share against more successful competitors.
And still, they come out with statements such as:
- ‘’We envision QASH could even become the preferred standard Token used to pay for all services provided by the broader financial industry…’’
- ‘’QUOINE is already in discussion with multiple financial institutions, FinTech startups and partners to make QASH the preferred payment Token for upcoming and existing financial services.’’
- In Q2 2019, Qash will have its own blockchain
- In Q3 2019, Quoine will be granted a banking license
The harsh reality is that Qash has never been used to pay a single penny of any financial transaction, there are no financial institutions considering it for payments. Quoine is not applying for or being granted, a banking license, and Qash will not have its own blockchain in 2019 or ever.
Of all the complex diagrams, flow charts, and mind-blowing dreams, advertised in their 2017 white paper, nothing has been achieved, not even the internal order book which was meant to simply aggregate Quoine’s own internal order books.
Fourteen months after starting their project, Quoine officials have not been able to name a single Exchange officially onboard for Liquid project. We remain unconvinced to when they claim: ‘’some of the exchanges we are in contact with, do not feel comfortable to have their names disclosed…’’
And while investors’ expectations have been pushed aside, a massive effort has been deployed to build up a squadron of sycophants called ‘community champions’, meant to simulate participation and interest for the few genuine members of the chats in which they participate, as well as surveilling and banning any critical comment or negativity on media such as Telegram, Reddit and others.
Quoine has simply chosen to pocket investors’ money and put up something to soothe their anger and despair. However, most of the funds are still held by the issuer and will be likely returned to purchasers if a legal class action is put forward.
The Liquid white paper lists 3 uses for Qash tokens:
– Transaction Fees
– Prime Brokerage
– Other Services: System Co-location, Automated Trading Strategies, Trading Tools
None of the above has been implemented or will ever be.
In regard to transaction fees, we noted that:
- Transaction Fees refer to those to be charged in the new platform featured with the world order book, Forex exchange, and everything described in the white paper, but none of that has been delivered yet
- Quoine is a 0 trading fee exchange. For several reasons, it does not make sense to introduce fees only to justify Qash utility, not even as a makeup
- Coins with fluctuating value, are not suitable for fees payment other than in their market pairs
- In general, there is no point in paying fees with a token that is first bought with FIAT or BTC and then translated to fees in FIAT or BTC back again. Also, who needs to buy tokens in the year 2017 to pay trading fees in the year 2019?
- Fees in Liquid are way too low to justify a $105m ICO, not to mention that an additional amount of tokens is still to be released, which is nearly double the original release
- It’s unlikely that Quoine/Liquid will introduce trading fees payable with Qash because that would shift profits from the Quoine business model itself (which is based on market maker and order books spreads) to Qash holders
In regard to other objectives/utilities of the project such as Prime Brokerage and Other Services, we believe Quoine executives are simply not willing to do anything about that, they just buried the promises made at the time of the ICO, which were sheer hype with nothing to back them up.
Overall, the only accomplished utility of Qash is filling Quoine bank account.
Quoine executives have blatantly stated on several occasions that some of the resources dedicated to Liquid project, were diverted to help Quoine to comply with Japanese regulators.
That came at the cost of significantly delaying or even abandoning of the goals of the project.
It is clear to us that Qash buyers have financed the project as described in the white paper with the purposes of making good use of the tokens, not with the purpose of fixing Quoine’s financials and operations.
Moreover, in regard to the allocation of tokens proceedings, the white paper stated:
We strongly doubt that any of the above has been maintained:
- 20% of 100m would make a hefty $20m of investments in the development of the Liquid platform, but looking at what has been released so far, the result is worth a tiny fraction of what it was supposed to be.
- 50% ($50m) of the proceedings in liquidity: as far as the architecture of the project is concerned, these proceedings were supposed to be deposited and used in those accounts opened at the partner exchanges, but because the project never started, we expect them to be still in Quoine bank account.
Most appallingly, what Quoine presented in 2018 as Liquid, is merely a new UI design of Quoine platform with an improved market maker running the order book; nothing of that is in the interest of or beneficial to Qash buyers, who remain still unserved in their expectations of service/product.
We observe huge equivocation with Liquid ICO: subscribers fairly expect things such as the return of their investment, good use of the tokens etc., conversely Quoine executives believe that the money was given to them as support for their corporate interests and financial performance, and bear little obligation to deliver promises.
Overall, Quoine has never released a single piece of information about how ICO proceedings have been spent.
The project would require a blockchain implementation if Qash was really meant to be used as a method of payment between entities outside Liquid, unfortunately, this fundamental aspect has been missed as well as all the others.
No, – Qash token is just a duplication of the ERC20 token, wrapped in a bunch of spin and marketing.
Qash is currently trading at less than a quarter of its initial value but, most scarily, Qash markets have very poor liquidity and there is no support to contrast even mild dumping.
We encourage all Qash tokens holders and earlier investors who have suffered financial losses associated with the purchase of the tokens, to join our class action with confidence, based on the following:
- Quoine has failed to achieve any of the promises set out in the ICO white paper
- Quoine has not made proper and exclusive use of the ICO proceedings, particularly has not allocated funds as promised in the white paper
- More than a year since inception, it appears clear that none of the milestones of the project is in place, nor will it ever be achieved: no utility, no world order book, no banking license, no Qash blockchain, no use of Qash as a payment method in financial services
…what is the point of investors’ money still held by the issuer, other than paying salaries and dividends at Quoine?
- MR. MIKE KAYAMORI
- MR. MARIO GOMEZ
Approx funds raised:
About this ICO:
– Undelivered project
– No value to investors
– No token utility
– Improper use of funds
– Massively hyped
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