QuarkChain is a high-throughput blockchain that aims to achieve millions of transactions per second (TPS) and one of the most hyped ICOs with a real weird marketing campaign.
According to many sources, it is a Chinese ICO money-snatch. Lets look at it closer.
- Instead of having a regular ICO where 60-70% of the coin is sold in ICO/Presale and somewhat widely distributed, these coins just have small little ICOs where they sell 5-20%. That’s a red flag number one.
- Next, having raised money, they spent 5 million on a Binance listing immediately. This allowed them to rate hype and boost the price of the coin rapidly while also creating massive initial liquidity on Binance. Once the coin lists on Binance the devs can unload their supply at 10x what they would have sold for at ICO. Done this way the team can make double the money while only selling half of the coins versus just holding a regular ICO. Plus they get the additional exposure benefits, etc. of Binance. Most respectable ICOs in the past wouldn't feel right in spending so much money on an exchange listing but now we see it is a savvy and cutthroat business decision. IOTEX literally just pulled this exact same move (and look at the post listing dump as the IOTEX team continually dumped the price back under 600 sats).
- In QuarkChain's case they only sold 20% with 16% locked up. That means only 4% of the supply is currently on the market. Yet, they are simultaneously listing on many exchanges including Binance. Binance even had to delay listing because of this. Who do you think is going to be selling and providing liquidity once Binance opens up? Of course it will be the QKC team themselves selling most of the tokens. This initial supply constriction also makes it much easier to boost the price of their coin (I mean the devs are literally buying their own coins on IDEX pumping this to the sky) both naturally and through manipulation - look at what happened with Bytecoin and that absurd pump when a small part of the supply was isolated for trading.
- QCK is a no-name team of Chinese opportunists who saw Zilliqa had a great idea and they blatantly ripped them off while adding exaggerations and embellishments to their white paper (1,000,000 TPS guys!!! but our testnet is only 5 nodes and does 2k TPS). IOTEX is kinda shady but you are FAR BETTER OFF buying IOTEX than this Quarkchain scam.
Quarkchain has a lot of hype right now. We would not hold this long-term as there are a few red flags for us that have been mentioned. Moreover, where did the raised money go to? The tech? Having control over such a huge amount of the available supply gives the owner the opportunity to dump on you hard... We might be wrong, but this is too risky for us and we stay away.
Another proof:
https://etherscan.io/address/0x2dea4e1840c3485acfe1a3198aa948de347bc8be#tokentxns
This address sent $32,222,222 worth of QuarkChain and 10,000 ETH on Binance. Looks like they are lying about 4% tokens unlocked! The team is selling their tokens.
And this is a special Binance warning:
“High Risk Warning: There is currently only 3.61% of the total supply of QKC tokens in circulation at the time of listing. The total supply is 10,000,000,000 QKC. [The ICO price was USD 0.018]. This may cause extreme price volatility. Please exercise caution when trading in the QKC trading pairs.”
You have been warned. Anyone telling you otherwise has tiny ICO bags and wants to dump them for max (just look at their telegram and all the people celebrating the money they are about to make dumping on Binance with the devs - noone is thrilled about holding this long term and seeing what happens).
This post was created by XRballer on Reddit, https://smartoptions.io/ and some of CryptoMedics community. We put it on Steemit so that it would not get deleted later.
Disclaimer: information provided by @cryptomedics does not constitute as investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the website's content as such. Do conduct your own due diligence and always do your own research before investing. If you like our content, show us some love, upvote, resteeem it and join our Telegram Discussion or the Main CryptoMedics Channel.
