Crypto Asset Statement: QNT (Quant)
Last updated: March 20, 2023
About this Statement
CatalX CTS (“Catalyx” or “we”) strives to provide our users with information to assist in understanding crypto assets that are offered for trading on the Catalyx platform (the “Platform”). One of the crypto assets we offer on the Platform is QNT. This summary sets out certain key information about QNT as well as some of the risks involved in trading it. While we tried to describe the key features of QNT here, this summary doesn’t provide all relevant information on QNT. We encourage users to perform their own research in order to understand any crypto asset that they intend to trade on the Platform.
History & Characteristics of QNT
What is QNT?
QNT, the native token of the Quant Network, is an ERC-20 token running on the Ethereum blockchain. QNT tokens are used to gain access to the Quant Network’s platform called Overledger and pay fees associated with its use.
About the QNT Network and Overledger
The Quant Network was established in 2015 by Gilbert Verdian and Dr. Paolo Tasca to improve inter-blockchain communications. Prior to their involvement with the Quant Network, Veridian formerly worked as the security lead of the Ministry of Justice in the UK and Tasca was a former special advisor on blockchain technologies for the EU parliament, United Nations and several banks. The QNT ICO occurred in 2018 and raised approximately USD$11 million.
The Overledger platform is an operating system created by the Quant Network to improve interoperability between blockchain systems. It allows for blockchains to interact so that applications can run on top of several blockchains at the same time and become widely used without being inextricably linked to any one particular blockchain ecosystem.
QNT tokens are required to develop applications and run operations on the Overledger network. The Quant Network collects the license fees associated with development of applications on the Overledger system. The number of tokens required to access the Quant Network are set based on a fixed fiat amount and may vary over time depending on the value of the QNT tokens and their number in circulation. QNT developers may choose to charge end users of their applications in QNT, fiat or other digital currency.
Risks
This overview provides a summary of certain risks associated with QNT. We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading QNT, and in addition, does not take into account an individual’s particular situation or risk tolerance. Purchasers are encouraged to conduct their own research prior to trading any crypto asset on the Platform. Catalyx users should read the Risk Disclosure Statement for additional discussion of general risks associated with crypto assets made available through the Catalyx platform.
Dependence on QNT Developers. The future success of the Overledger ecosystem and the Quant Network is likely dependent on the ongoing participation in network development by the founders and the Quant Network. Based on the Quant Network’s role in administering fees associated with use of the Overledger ecosystem, it is unclear if QNT would continue to have utility and value in the event the Quant Network ceased to operate. If these entities cease their support for the network such actions may be detrimental to the project going forward.
Please note that these risks and the associated summaries or overviews provided for each in the Risk Disclosure Statement are not intended to be an exhaustive discussion pertaining to all such risks and, in addition, there may be other risks that come with exposure to QNT. We encourage all Catalyx users to perform their own due diligence to assess the risks associated with QNT and to determine whether this level of risk is acceptable to them.
How Catalyx determines which Crypto Assets to List
Catalyx has established robust policies and procedures to review each crypto asset offered for trading on the Platform. Among other information, we review available public information relating to the crypto asset on the following topics prior to making a determination on whether a crypto asset will be listed:
The history and characteristics of the crypto asset including whether the crypto asset was launched by ICO;
Analysis of the founders or inventors of the crypto asset/related network and a review of their ongoing involvement with crypto asset/network;
How the crypto asset functions including a review of its utility or purpose;
The market liquidity for the crypto asset;
The current and proposed governance of the ecosystem on which crypto asset operates with a focus on the level of decentralization of such ecosystem; and
The position taken by any regulator with respect to the crypto asset including any enforcement action taken against the crypto asset, the related network, or the founders.
In addition to the above we also conduct an analysis of factors weighing in favor or against the crypto asset being deemed to be a security based on Canadian securities laws.
Regulatory Information
No securities regulatory authority in Canada has expressed an opinion about QNT or any of the other crypto contracts or crypto assets made available through the Platform, including an opinion that QNT itself is not a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange, or value of any crypto contracts or crypto assets you hold on the Platform.
Certain statutory rights under securities legislation in Canada do not apply in respect of this Crypto Asset Statement.