ICO Analysis: Quadrant Protocol
What is the hottest commodity of the 21st century?
Data, data, and more data.
Entire industries are popping up that revolve around working with data.
However, in its current state, the data economy is unorganized and unreliable. Getting one’s hands on data can be difficult since companies like Facebook and Google, which hoard massive stores of data, are often loath to share. Moreover, data from other sources can also be untrustworthy since data provenance, or where the data came from, can be hidden and thus data sources aren’t transparent, resulting in compliance issues for companies that need to know where their data came from. Data creators or producers also don’t always see the value of their work as profits from their data often aren’t shared with them. As such, solutions are being sought to provide quality data marketplaces for the procurement and utilization of data.
One such solution is Quadrant Protocol, a blockchain-based protocol that will allow for the access, production, and distribution of genuine and traceable data-related products and services. In particular, Quadrant is designed for exchange of Data as a Service (DaaS) and artificial intelligence (AI) services. Data vendors sell their data using data smart contracts, which compensate them for every transaction in the value chain, and purchasers can buy data and track its origins with Quadrant’s data stamping verification system.
By providing an organized and reliable data-based marketplace, Quadrant foresees the future growth of the data economy as DaaS and AI companies will be incentivized to build new products and services on Quadrant Protocol.
Quadrant Protocol has two tokens: eQUAD and QUAD.
eQUAD are placeholder ERC-20, Ethereum-based tokens that will be used until Quadrant’s mainnet is launched. Then, eQUAD will be converted to Quadrant’s native token, QUAD.
(For the purposes of this analysis, we will discuss Quadrant’s token economics using QUAD, which will eventually take the place of eQUAD).
Here are QUAD’s uses:
- Medium of exchange for data transactions (e.g. buying, selling, staking to access datasets)
- Stamping data and having it verified by Guardian Nodes (maintain and secure Quadrant’s blockchain), who are then paid for their verification services
The total supply of QUAD tokens is 1,000,000,000 QUAD.
40% of the tokens will be sold in the token sale, 20% will be held by the company (foundation), 20% will be for stakeholders (advisors, operations, and security), 10% will be held in reserve (network, community, and partner development), and 10% will be for the team.
Team tokens will be initially locked and then vested over 5 years in monthly increments.
The token sale has a soft cap of $7m and a hard cap of $20m.
If the sale raises more than the soft cap, which it has as of writing, contributions will be initially locked and released over 4 years, with 40% becoming available after the end of the token sale and the remaining 60% being released yearly at an annual rate of 15%.
Token sale proceeds will be used as follows.
- 35% Business and Network Development
- 30% R&D
- 25% Operations and Security
- 5% Legal, Accounting, and Compliance
- 5% Treasury (ensure smooth operation of the ecosystem and that people can use the protocol even if tokens are unavailable to volatility in QUAD supply and demand)
Unsold eQUAD will be held in a reserve for a future token sale to be held within 2 years after the conclusion of the public token sale.
Founder and CEO Mike Davie – Quadrant is led by Founder and CEO Mike Davie. Davie has a lot of experience in data and is also the Founder and CEO of DataStreamX, an online marketplace for real-time data created by big data, machine to machine (M2M), and Internet of Things (IoT) applications. DataStreamX was named one of Singapore’s 20 Hottest Startups of 2017 by Singapore Business Review. Davie’s experiences at DataStreamX led him to create the blockchain-based Quadrant Protocol solution.
Before DataStreamX, Davie worked at renowned companies like Samsung, where he held roles in business development, marketing, and product strategy.
Davie has also been a speaker at Big Data conferences, such as Monetizing Big Data in Telecoms World Summit 2017, 2nd Asia Conference on Big Data and Analytics for Insurance, and Echelon 2015.
Advisors for Quadrant Protocol include the following:
- Benedict Chan, CTO at BitGo, a blockchain security company that is one of the earliest blockchain-based companies and pioneers of the multisignature Bitcoin wallet (requires multiple sign-offs for transactions to be made, heightening security). BitGo was also the first blockchain service to offer insurance against theft from its Bitcoin-based wallets. Chan brings his technical expertise to the Quadrant Protocol project.
- Hari Krishnan, CEO at PropertyGuru, Asia’s leading property portal and one of the most prominent tech companies in Southeast Asia. Krishnan advises Quadrant on growth strategies.
- Pavel Bains, CEO at Bluezelle, a company that had its own successful ICO and builds blockchain solutions for the finance industry. Bluezelle was named a World Economic Forum Tech Pioneer in 2017. Bains brings his technical knowledge to Quadrant.
A breakdown of the risks and growth potential is provided below.
- Private sale mentioned but no details given (allocation amounts, contribution limits, vesting, etc.). (-0.5)
- Community hype could be higher (“only” 16k Telegram group members, 4.6k Twitter followers – as of writing; and generally not as hyped as other ICOs). (-0.5)
- No partnerships detailed (how will they get people to use Quadrant Protocol). (-0.5)
- Strong team with data industry experience. (+3)
- Strong advisory board. (+2)
- Financial discipline – token sale proceeds are being vested to ensure that initial spending doesn’t get out of hand. Airbnb was started by two guys racking up $20k in credit card debt. Makes you question some ICO raises. (+2)
There seems to be tons of ICOs trying to tackle the need for a quality data marketplace. Quadrant Protocol stands out due to its team, advisors, and financial discipline. However, lack of details on private contributions, lack of relative community hype, and no details on partnerships makes one wonder if it will get off the ground. Quadrant Protocol receives a 5.5/10
- Type: ERC20 – Utility (to be turned into Native – Utility)
- Symbol: eQUAD (to be turned into QUAD)
- Platform: Ethereum (to be turned into Native)
- Crowdsale: Ongoing
- Minimum Investment: Unspecified
- Price: 1 ETH = 10,782 eQUAD or 1 eQUAD = $0.05
- Hard Cap: $20m
- Payments Accepted: ETH
Restricted from Participating: USA, China, Canada, New Zealand, South Korea, and UN-Sanctioned Countries as well as those who fail to pass KYC/AML checks
Featured image courtesy of Shutterstock.