As 2017 approaches its final days, the writings are on the wall loud and clear:

“THE ABUNDANCE OF ICOs ARE RISING AT HOCKEY STICK RATES. SOME ARE VERY PROMISING INVESTMENTS”

Quantstamp seems to be one of those opportunities that checks almost every box:

· Quantstamp is to blockchain what McCaffee Security is to Operating Systems. It is unique to blockchain technology, and could not exist without the advent of smart contracts. The Ethereum ecosystem will be hugely enabled by this service which will help it grow exponentially in coming years.

· Quantstamp is member of the Y Combinator accelerator, breeding grounds for Airbnb, Reddit, Twitch etc and their team’s advisors are faculty at some of the best engineering schools in the world. From a management and technical perspective, the team is well equipped to tackle this project.

· The community has exploded and is one of the most engaged on Telegram at 15.3k members before the main crowdsale started and growing at 500 new members per day. Exactly the type of community large exchanges look for before listing.

· Endorsed by some of the biggest names in crypto, Quantstamp is everybody’s favorite. Most thought leaders agree there is a desperate need for improved security protocols in the blockchain space and have publicly supported this ICO.

· The team set out to raise a humble $30M hard cap with a very specific road map for growth which will create handsome investor leverage for those who stay to ride the wave. With strong investor sentiment behind it, the $11M crowdsale round was heavily oversubscribed and ended up raising $20M.

· Vitalik Buterin tweeting about auditing and formally verifying smart contracts after the recent Parity bug (11/8/17) really strengthened the case for Quantstamp:

BONUS ROUND: Quantstamp tokens are burned after use (unverified). As smart contracts become exponentially more ubiquitous, so will the rate of tokens burned after each audit. Quantstamp has already audited the Request Network and WeTrust smart contract, which Vitalik Buterin advises. The crypto community is obsessed with shrinking circulating supplies coupled with increasing demands.

2nd BONUS ROUND: The Quantstamp ICO provides exclusive access to global investors, excluding investors from USA, China, and Canada. This is an optimistic sign that demand after the crowdsale is anticipated to be overwhelming for FOMO investors from these countries immediately after the coin is listed.

Quantstamp offered some fairly attractive presale opportunities that got the community salivating:

A) 50% off for Tier 1 applicants ($3M)

B) 40% off for Tier 2 applicants ($4M)

C) 20% off for Tier 3 applicants ($4M)

That was super exciting but for others who couldn’t get into the discount tiers, the team probably wanted to extend a gesture of appreciation to those applicants as well. So, Quantstamp decided to open up another opportunity:

D) 0% off + No Individual Hard Cap for Tier 4 applicants ($19M)

This came as a welcome surprise, but to anyone with an eye for ICOs this is an attractive opportunity to accumulate one of the best coins available in 2017 with no individual hard caps, compared to the regular crowdsale which will likely have a low individual hard cap. Okay then why are some people saying Quantstamp Tier 4 (or mainsale) is not a worthwhile investment? Because they think the presalers are going to “dump on us.” Their cautious stance is totally understandable. The nature of investing and returns depends on your foresight and vision. Let’s run through the math and see why it is very unlikely that Quantstamp experiences a dump below ICO price.

Most people are worried that “Tier 1 holders are going to dump immediately.” Richard Ma (CEO) and the Quantstamp team are way ahead of us on this one. Examining the following quote from the Quantstamp team reveals almost nobody was given the Tier 1 discount outright:

“Dear community, If you received allocations in multiple tiers, the bonuses will be allocated in the following order: Tier 3, Tier 2, Tier 1, Tier 4 E.g. If you requested 50 ETH and were allocated 25 in tier 2 and 25 in tier 3, you will need to contribute 50 ETH to receive both the tier 2 and tier 3 allocations. If you contribute 25 ETH or less, you will be allocated into tier 3.”

This means that most people were not able to buy into Tier 1 exclusively. Rather, they were required to split their entire allocation amount between Tier 3, Tier 2, and then finally Tier 1, therefore averaging their total discount rate. AND if anyone didn’t submit their entire allocation amount, they didn’t get access to Tier 1. Those are some pretty tough requirements to get into Tier 1. You can be certain that some folks indicated 50 ETH into Tier 1 when really they could only afford 30 ETH and now they weren’t be able to get any ETH into Tier 1. Woops!!

Now, the $11M presale tokens were sold at an average of $.04 per token ($300/ETH), compared to a crowdsale price of $.06 per token. This was only a 33% discount on average, between all the tiers. If we take the weighted average of all the tokens across the whole range, $30M/650,000,000 QSP, we get an average price of $.046 per token, which is only a 23% discount across the entire ICO fundraising campaign. Therefore, in the worst case scenario, QSP would only drop down 23% if every single presaler dumped immediately, which is highly unlikely given the POC scenario. These presale investors really want to be part of Quantstamp long term — just look at at how much they invested already:

The presale ended up raising the full $11M of discount tiers plus an additional unexpected $9M overflow at regular crowdsale rates (5000 QSP/ETH). For every $1 that a presaler invested at a discount, they also invested $.81 at 0% discount. That is the definition of faith. No quick dumpers here.

Another important aspect to note is that only 2500 people who submitted a POC application invested in the pre-sale tiers. Those 2500 investors coughed up almost $20M in the presale (62k ETH), leaving only $10M (38k ETH) for the remaining 12.5k people in the telegram to split during the crowdsale (roughly 3 ETH per capita). The crowdsale is likely going to sell out quickly, possibly in a single day and a significant portion of investors are going to pick up a lot more QSP as soon as they hit exchanges.

Lastly, the Quantstamp team has innovated a new Proof of Hodl system which will reward holders with bonus tokens (exact rewards TBD) for holding! This is going to be an extremely attractive offer for presalers and mainsalers alike, and I’m looking forward to seeing how high Quantstamp will take us. If you were not permitted to buy the in crowdsale, Proof of Hodl has a 5 day grace period, meaning the Proof of Hodl system does not activate until after 5 days of public trading.

These presale numbers are starting to look much more savvy, comparable to other successful ICOs with presales. Given all the evidence presented, I will be totally shocked if QSP falls below ICO price. We need to tip our hats to the Quantstamp team because they innovated a Proof of Care system with tier allocations that kept the community motivated, yet their presale numbers on average look very similar to previous successful ICOs.

Quantstamp to the moon!