Wednesday, June 13, 2018

Uproar over token

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June 13, 2018

"Everything that irritates us about others can lead us to an understanding of ourselves." 
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THE FEATURE

Quantstamp Under Fire: Buyers Allege Startup Undermining $65 Million Token

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.

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.

"We are concerned that you guys don't need the token to grow in value for your company to succeed as a payment for manual audits," one user wrote in the Quantstamp project's Telegram group.

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