Quantstamp Under Fire: Buyers Say Faith Shaken In $65 Million Token

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Quantstamp Under Fire: Buyers Say Faith Shaken In $65 Million Token

Post by phATstax00 » Wed Jun 13, 2018 7:06 pm

A blockchain project is facing an uproar from community members who say the team has been undermining the value of the token it used to raise millions.

The controversy around Quantstamp, maker of a protocol that seeks to decentralize smart contracts auditing, reached a fever pitch late last week, with acrimony spilling into the project's social channels. There, representatives for the San Francisco-based company, registered in Delaware, took heated questions from token buyers.

At issue is Quantstamp's acceptance of U.S. dollars and ether, rather than its token, QSP – which it used to raise a little over $30 million in an initial coin offering (ICO) last November – as payment for smart contract audits it has performed.

In that offering, the company exceeded a targeted $11 million by $9.5 million, raising $20.5 million from an initial round. The remaining $9.5 million was sold through a public crowdsale. So far, 65 percent of those issued QSP tokens, out of a 1 billion supply, have been distributed.

Quantstamp raised the funds under a Reg-S exemption, one that seeks to cover U.S. entities raising funds abroad, according to a December filing with the Securities and Exchange Commission.

But Friday's discussion showcases that token owners are beginning to question the degree to which both QSP and the company's own technology have been involved in the 484 audits Quantstamp claims to have completed, according to its website.

Documents obtained by CoinDesk indicate that the company has accepted ether (ETH) for services in one instance and priced its offerings in U.S. dollars in another, practices that appear to have run afoul of user expectations, with some claiming this clashes with practices they believe the company said it would pursue.

https://www.coindesk.com/quantstamp-fir ... ion-token/

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