QLC Chain

Opportunities:
Strong team and advisors in place. The team founded Youyou Mobile, which is in the mobile data space and received significant amount of VC funding. With the connections of the team and advisors, the company should be able to open dialogues with different telcos and gain traction.
Qlink is trying to disrupt the inefficient mobile network industry. If it becomes successful, the potential for Qlink and QLC token holders is enormous.

Concerns:
Qlink needs to work with a lot of different telcos and form partnerships with them. Telcos are typically large companies that are slow to change. It may take a long time to implement a new model as radical as Qlink’s.
The project’s goal is ambitious, offering many different services (sharing Wi-Fi, mobile data, SMS service, mobile app, hardware development, etc.). This is not easy to pull off.
The MVP is not out until the end of the year, which makes Qlink a white paper project.
10,000 Ether worth of tokens are sold to strategic investors with a 30% bonus and 1-month lockup. They are willing to sell at a lower price once the tokens are unlocked since their cost basis is lower.
Even though Qlink is a Singapore-registered foundation, its operations will be based out of China. The Chinese government’s stance toward cryptocurrency and ICO could impact QLC tokens.

Conclusion:
Overall, we are neutral about this ICO both for its short- and long-term potential. For the presale, participants can choose between contributing using Ether or Neo as the conversion ratio is 1 Ether = 10 Neo. Therefore, choose the currency that allows you to purchase QLC tokens at a lower price.
Our thoughts of the tokens for short term and long term are as follows:
For ​short-term holding
Neutral. On one hand, the circulating market cap is on the low side, and the team is strong with successful startup experience in relevant industry before.
On the other hand, QLC tokens may not be tradable that quickly because it is built on the Neo blockchain and not an ERC-20 token. Also note that the tokens purchased by strategic investors, who contributed 10,000 Ether, will be unlocked 1 month after they are distributed, which will cause selling pressure.
For long-term holding
Neutral. The project is very ambitious, providing many different services and involving software and hardware development, as well as partnership with many telcos. The more ambitious a project is, the higher chance it will fail.

We like projects that are focused on the foundational layers of the blockchain ecosystem. Building blockchain for the telecom industry could be a good investment from the project’s perspective.

We think the exciting pieces of their project may be a long and arduous journey requiring heavy lobbying of the major telecom players. It’s a bit of a long shot in our opinion.

However, the most redeeming element of Qlink’s plan might actually be the part that is least exciting. The peer-to-peer wifi sharing market is a proven multibillion dollar market with a proven business model. If they can provide a more efficient, secure and rewarding experience for all parties involved by leveraging blockchain technologies then they have a good shot at dominating this market.

If Qlink can establish a strong foothold in the peer-to-peer wifi sharing market then other possibilities become less of a pipedream.

They plan to release their MVP in mid-December. We’d like to check out the MVP before making a decision on whether or not to contribute to their ICO.

If the MVP checks out we will likely make a small bet on the Qlink ICO.