Thanks to all who attended or provided questions for the first Qredo community AMA, held on our Telegram channel with Qredo COO Josh Goodbody on September 6th. We've had a lot of positive feedback on the event and will now be holding these regularly.
(NOTE - For clarity, we've corrected any small typos in original Q&A below).
1. Why have you given tokens to exchanges prior to the release of Option 1 tokens?
JG: We want to clear the air on this.
In consultation with exchanges and market makers we determined that conducting a first listing on 14 September, on the same day as a large number of QRDO vests, carries risks.
In planning for a healthy market, we have borrowed from concepts seen in the traditional financial markets, such as during IPOs, where an organic market is created BEFORE a large amount of tokens unlock.
We are building a rocketship for the long term here — have faith 🚀
2. How many tokens were distributed? i.e. What is the current circulating supply and where has it come from?
JG: The initial circulating supply on the 31st of August was 700,000 QRDO tokens distributed the following way:
- 100,000 QRDO on GateIO
- 600,000 QRDO on KuCoin and an extra 400,000 QRDO will be entering circulation on the 30th of September as part of the KuCoin BurningDrop event.
- Today we are distributing ~36,000 QRDO as part of a promotional campaign with WOOX
On top of this, we have a loan facility of QRDO available to market makers to quote a bid/offer spread of around 50-75 basis points at all times.
I want to be very clear: not one QRDO has been sold by the team, Qredo itself, or any of the investors.
All these tokens are locked up as per our vesting schedule. We are building for the long term, and we have a long term horizon for this.
3. How many tokens did the market makers receive and can you explain how they work? How do they make a profit? Are they dumping their tokens?
JG: Market makers help increase liquidity and order book depth, reduce slippage and negative price volatility. They are critical in growing a healthy market, incentivising usage of QRDO and making it an asset folks want to hold for the long term to be able to participate in its utility!
The market makers are not incentivized to dump their tokens.
Market makers will quote QRDO on exchanges with a bid/offer spread around 50-75 basis points.
They can make a small profit on these types of trades, but their main goal, which they are strictly held accountable for, is to maintain that tight spread.
We get daily market maker statements so we can track this 👀
The role of a market maker is not to increase the supply, but to curate the order book to foster a healthy and dynamic market.
You cannot have an asset listed on large exchanges without engaging market makers. They play a vital role in establishing the long term success of a crypto asset.
Any loaned QRDO is returned to Qredo at the end of the term of the market making agreement.
4. Are there plans for further exchange listings?
JG: Hell yes! We will be announcing the next few in the course of this week.
We are speaking with all the large exchanges and have big plans.
We are backed by some of the biggest in the space, so we have long term plans to collaborate across the board.
Over the next few months, we will be announcing new listings every few weeks.
5. When will Liquidity Hub be available to trade QRDO and will this be available for the token release on September 14th?
JG: Qredo Liquidity Hub is a game changer for cross-chain swaps 🔥🔥🔥
For those of you who don't know about it, we are currently in open beta with the Qredo Liquidity Hub. This is a new peer-to-peer trading venue that offers trustless cross-chain swaps.
And yes, it will be available on September 14th -- enabling you to swap QRDO for other assets supported by the Qredo network, with other Qredo users via Liquidity Hub.
6. When will QRDO be able to be deposited on the Qredo Network and benefit from the Auto-Staking Programme?
JG: This week! We will be communicating the date in the coming days.
All QRDO held on Qredo Network will automatically generate a yield of 10.1% APY, payable on a monthly basis.
UPDATE -- QRDO Auto-Staking is now live!
7. And PowerSwap?
JG: PowerSwap enables you to atomic swap Qredo Tokens at best market price by trading directly against the market maker on Qredo’s new Liquidity Hub.
This is not live yet so we will keep you posted on timings for this....
8. Will CoinList users who changed their email have access to their Qredo wallet by September 14th?
JG: Users need to create their QRDO fund using the same email address that they registered on CoinList with. If they've changed email afterwards, then they will still receive their tokens. If not, then they will need to re-register with the original email and set up their QRDO fund.
For those who have changed the email on CoinList after participating on the QRDO sale, we are working with CL to get the updated email list onto our backend.
This may take a few weeks, but we will fix this - thanks for your understanding in the interim 🤝
9. What happens for users whose mobile phone is not supported by the app?
JG: We are working on a workaround for that small number of users, and we will present the solution in the next couple of weeks.
We haven't forgotten about you!
10. If my phone or seed words were hacked, compared to those non-custodial crypto wallets, will my assets be safer?
JG: With custodial crypto wallets, you are entirely at the mercy of the service provider.
But with Qredo, we allow you to take full control and responsibility of your crypto wallets and the two step process (initiate transaction, then approve via custodians) gives an extra layer of security.
Yes, if your seed words are compromised, then an attacker can attempt to restore your account to their phone - however, they would still need access to your email account to verify the restore attempt.
With Qredo, you are also required to define policies for "transactions" (1 or 2 way movements of assets across the Qredo network) and for "withdrawals" (movement of assets off the Qredo network).
These policies are defined by creating a group of Qredo users (your custodians) and a threshold (defining how many of your custodians must approve the transaction for it to be executed). This gives additional protection in the case that your account is compromised.
Always ensure that your phone and importantly your seed list are kept in a safe location - particularly if you haven't created an organization with multiple traders. With a personal account, only the account holder can initiate transactions.
1. Other projects listed a large amount of tokens on the same day as the cause of failure,
Sir! When this strategy is applied, if 30 million Qrdo is launched on September 14th, how is it different from those projects? ! Your investors are scared about 9/14. (@muztnguyen)
JG: Totally understand the concern.
The key here is: we have done our absolute best to build new organic retail demand.
By connecting with new exchanges early, and introducing QRDO to their investor community, we are constantly stimulating new retail demand.
2. Is there a plan in place to handle the volume that will naturally occur on the September 14 unlock?
No need to be specific, but I would hope that there is something planned to counter the selling pressure. Thanks! (@crypto_platypus)
JG: Spot on @crypto_platypus
We are going to be announcing a number of listings, partnerships and initiatives that we hope will create significant coverage, and demand for QRDO.
The market will decide, but we are doing our bit to stay innovative and vocal about what we are doing.
We plan to do more and more ✌️
3. What incentivise people to buy QRDO now? When will Qredo Netwrok be integrated to exchanges? (@suking123)
JG: We are working on several integrations at the moment.
We will be announcing them as they are completed but the first one should be within the next few weeks.
QRDO is the fuel within the Qredo Network and the more network usage we get, the more of a network effect we will build.
4. Question in two parts:
A. I see the Qredo price calculated via Coinbase in Qredo network, could you please clear this thing by the technical, I thought the price will display after listing in Coinbase, if not how to get data from Coinbase to display in Qredo network?
B. With the current situation, if more than 30 million coins are released in option 1, then trading on 2 exchanges Kucoin and Gate will cause the Qredo price to drop very deeply, it seems unfair to investors who tried to buy in coin list, so do you have any solution to solve this? we hope Qredo will list exchanges with large liquidity on September 14 (OKEX, Houbi, Binance..) to increase liquidity, which also helps Qredo price at that time better. (@phongpv168)
JG: Yo @phongpv168
A. The price of QRDO comes from other oracles, but you are right that we use Coinbase price oracle for other assets.
B. Stay tuned for the upcoming listing plans. We got this 🤝
5. We need more marketing and volume to be in healthy order book? (@mhmdhwidy)
JG: Marketing and community ramp up is exactly what we are prioritising.
It is so important, and we are making great progress through The Qreed Programme and upcoming partnerships.
6. We as investor only can hold the tokens and nothing can happen.
May you give us some information about the next movement for $QRDO uses cases? (@Sym08)
I can't give names yet, until we announce these officially but, some teasers:
- Custodial partnerships: we are integrating with some of the market's largest regulated custodians that will be using the Qredo Network for custody and settlement tech. This brings a huge userbase to the Qredo Network.
- Exchange integrations: Soon 2x integrations will be announced.
- Banks using Qredo: we are working with a number of banks to provide them with their infrastructure to get crypto-ready. One huge partnership, to be announced, is with a large government owned bank getting "Bitcoin-ready" in Latin America
-Qredo goes DeFi: Qredo has been selected as the embedded Crypto Wallet solution by one of the largest DeFi providers in the space.
7. Deribit connection? (@The_specialtwo)
JG: Soon 👀
8. Can we become validators on the network to earn extra rewards? (@crypto_platypus)
JG: We aim to bring the first set of validators onto the network by the end of the year - you will recognise the names as leading crypto firms.
As a token holder you will be able to stake to validators and crypto staking rewards.
The next phase is to see how the community can club together and participate as validators. That is still TBC.
We have a Validator Buy-Back Programme to showcase this week. Stay tuned.
9. Why change your job at Binance to one at Qredo? (@The_specialtwo)
JG: Great question.
Having worked since 2017 in the exchange space, I’ve had first hand experience with the growing pains the industry has faced as it scaled.
For example, at a large exchange I worked at, on volatile days we were paying millions of dollars in Ethereum gas fees to enable users to withdraw their assets. This coupled with the fact that all the scaling and settlement solutions being brought to us involved complex synthetics, wrapping and pegging, made it clear in my mind that infrastructure was the number one issue facing the crypto economy.
Seeing first hand what the Qredo team have achieved over the past two years, and understanding how powerful and transformative this infrastructure can be, meant it was an easy choice to jump head first and get building with the team.
We are a team of 70 super passionate builders, from all disciplines and regions, that truly believe in our mission: building the metalayer for the blockchain economy.