ICO Review – Quarkchain

Premise

4.5/5 -Excellent

Quarkchain is a high throughput blockchain which uses sharding to achieve potentially over 1 million transactions per second – more than Visa. It uses a two layer blockchain where the first layer is the shards, and the second layer is a root chain where blocks from the shards are confirmed.

Quarkchain uses a PoW consensus mechanism, and it will also be able to run Ethereum smart contracts with little or no modification.

We like that they are using proven technologies to tackle an immediate market problem -scalability.

They are currently running a closed testnet, and are aiming to launch their mainnet late this year in Q4.

Team

4.5/5 – Excellent

Quarkchain has an excellent team filled with rockstar engineers who have graduated from top universities and worked at big name companies like Facebook and Google. Their experience is not only top-notch but seems to be relevant to developing this type of project.

One aspect we would have liked to see is a better batch of advisers. While there is nothing wrong with their current set of advisers whom come from engineering and investment backgrounds, a project like this would benefit from more industry partnerships. It would have been nice to see advisers with more enterprise or banking backgrounds.

Token

4/5 – Good

The quark token is used on the network to pay fees and incentivize miners, just like a traditional blockchain. This is a good and legitimate reason to have a token.

The float of the project is less good – 20% of tokens are being sold. 80% of the tokens sold were sold in the private sale for $16 million, and the remaining 20%($4 million) will be raised in the public sale. Statistically, the float of a project does not seem to impact the return, but it’s a useful figure to know to see if the economics of the project makes sense.

Despite the low float, the use of tokens seems to make sense. Along with the lockup period for the private sale, advisors and team, we feel the token economics are quite decent.

Risks

3/5 Medium Risk

The project seems to be making good progress towards its goals, with testnet throughput already in the thousands per second, which is much greater than either Bitcoin or Ethereum.

We don’t doubt that the project can achieve its technical goals, which are relatively modest yet also quite useful – fast blockchains are sorely needed right now.

However, they don’t seem to have any industry partnerships lined up yet, which is a bit worrying. Their advisors also do not seem like they have the industry connections to make that happen.

Since the high throughput blockchain space is getting increasingly crowded with competitors like Zillliqua, Oneledger, Iotex and ICON, there is significant business risk for this project.

Summary

Very Good

Quarkchain tackles an immediate problem – scalable blockchains, and uses proven technology to achieve it. They are already running a testnet that beats current mainstream blockchains, and future developments promise even higher scalability. The fact that they support Ethereum smart contracts is also a plus since developers do not need to learn a new scripting language.

They have a rockstar development team and their private sale is already closed – leaving just a $4 million crowdsale which we are sure will be sold out. The only question is  – with all the competition out there right now – can they secure the business partnerships they will need for long-term success?

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Disclaimer: ICOBriefing does extremely early-stage research of token offerings. As the project progresses, details may change significantly or completely. Always do your own research and do not invest more than you can afford to lose.

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