by Forrest @0xStacker

Many people do not understand Quant Network or the $QNT token.

I'm going to simplify why I believe $QNT is an S-Tier cryptocurrency.

Quant Network is building a blockchain interoperability and access point SaaS solution for enterprises, institutions, and developers that will be deemed as “mission-critical” in the future.

As enterprise blockchain adoption increases, Quant Network will experience fast growth which will be reflected in its token price. 

ELI5: What is Quant Network?

Quant Network has a SaaS product called Overledger. There are a lot of blockchains out there. Overledger enables users to access all of them at once from one place. It’s that simple.

Why is this important? Blockchain technology is being adopted at a rapid pace. But like most emerging markets, it’s incredibly fractured.

As mentioned, there are a lot of blockchains out there. As a business, how do you decide which ones to integrate? At some point in the future, it is likely that most enterprises, governments, companies, etc will need to access various blockchains for different reasons. For example, imagine you’re a bank 5 - 10 years from now... 

Your bank’s accounting is done on a private blockchain.

One of your enterprise clients, Starbucks, has their loyalty program on Polygon.

Some of your clients get paid primarily through stablecoins on Arbitrum and want to deposit into your bank directly from Arbitrum.

You also service retail clients in Europe, where digital identification is now done on (insert blockchain here).

You have a number of customers who use Stellar for cross-border remittances, and they want to initiate txs directly from their bank account.

You need to send $250M USD for operations in the US, so you send it via Ripple or some CBDC solution we haven’t heard of yet.

Do you want to build integrations with each of these blockchains a la carte? That could get expensive... 

Or would you rather get a license for Overledger where all of this can be done in one place?

Quant Network is the gateway to all blockchains & networks. It also enables users to create smart contracts and tokens from an intuitive user interface as opposed to needing specialized programming expertise. 

Positioning

Quant Network is building solutions that make all blockchains more accessible to users.

As new technology percolates into society, its adoption becomes a necessity. 

At some point, it became a necessity to have a car.

Then it became a necessity to have a telephone.

... a computer.

... email.

... a cell phone.

... social media. 

Now most businesses cannot operate without a CRM solution like Salesforce or HubSpot, data solution like Snowflake, or communications solutions like Slack & Zoom. It will eventually become a necessity to access ‘the blockchain’. Quant Network is building the solution (Overledger) for mainstream institutions, enterprises, and developers to access all blockchains in one place.

Quant is positioning themselves as a regulatory friendly blockchain solution that makes blockchain adoption easy and cost-effective (one integration vs many integrations). 

This outtake from an article by The Coin Agora sums up Quant’s positioning pretty well:

Tokenomics

QNT has a 99.5% circulating supply, meaning sell pressure from things like token vesting, staking rewards, or mining rewards is non-existent. 

Users pay a yearly licensing fee (fixed dollar amount paid in QNT tokens) to access the platform.

Additionally, QNT is used to pay for the use of network resources (think transaction fees). 

The QNT used to pay annual licensing fees is locked in the Quant Network treasury for 12 months before being sold.

This creates increasing constriction of the circulating supply of QNT so long as demand is growing. 

So if inflows into the treasury from new users are greater than outflows from demand (inflows) 1 year ago, assuming a perfectly efficient market, $QNT price should go up.

Note that:

• We do not have a perfectly efficient market. The market for $QNT is volatile & speculative like most crypto assets.
• There are many other variables that can affect $QNT price. 

However, in this simplified model, we see that by buying $QNT tokens today, you are betting that there will be more product demand (inflows) one year from now than there is today.

Valuation

$QNT is currently valued at $1.6B.

While it’s admittedly a loose and speculative approach...

(especially since the valuation models are so different)

I do think that comparing Quant Network to other mission-critical SaaS solutions is an interesting exercise.

Here’s a list of revenue and market cap from some successful “mission critical” SaaS solutions:

@salesforce has annual revenues of $7.72B and a $153.8B market cap.

@HubSpot has annual revenues of $883M and a $14.2B market cap. 

@Zoom has annual revenues of $1.1B and a $21.91B market cap.

@SlackHQ was acquired by Salesforce in 2021 for $27.7B.

@SnowflakeDB has annual revenues of $1.22B and a $46.3B market cap.

@Zoho has annual revenues of $1B.

@Mailchimp has annual revenues of $800M. 

Team & competition

Notice I didn’t touch on the team and market competition.

(imo, team is top-tier and competition is sparse). 

This is because:

• Most people are capable of researching that for themselves.
• The value in these threads is in explaining a value proposition and abstracting a reasonable investment thesis. 

TLDR:

If you believe blockchain access will become a mission critical operation in the future, $QNT is well-positioned to capture much of the market value.

About Making Cents

Making Cents is the leading social, marketing and education platform built on the VITE network. Get weekly news highlights in the cryptocurrency space by following us on our socials!

Website: https://www.makingcents.xyz
Twitter: https://twitter.com/BeMakingCents
Telegram: https://t.me/bemakingcents
Discord: https://discord.gg/XkNPut8eNT
Publish0x: https://www.publish0x.com/@MakingCents
Wortheum: https://wortheum.news/@makingcents/