Here Are Today’s ICO Losers: Storj (STORJ) and Quantum Resistant Ledger (QRL)

We’ve had a busy week in the token space this week so far and it looks as though there could be plenty more volatility on the cards as we head into the weekly close. As ever, some of the action has been positive (as relates to the price and direction of the tokens in question), while some have been negative.

For our views on the tokens that are gaining strength this week, check out this piece.

On the other side of the market, here’s a look at two of the tokens that are taking a hit in the markets this week, with a discussion of what we’re expecting from each near-term.

The two tokens up for discussion today are Storj (STORJ) and Quantum Resistant Ledger (QRL).

Let’s start with STORJ.

Many reading will likely already be familiar with this one – it’s one of the most well-known companies in the ICO space and grabbed headlines not just in crypto but also in the mainstream financial and business news/media back in May this year on the back of a $30 million raise in its initial offering.

For those not familiar with the company, however, it’s a cloud and network storage company that offers incredibly cheap storage solutions for its customers, priced at somewhere in the region of one-tenth of the more well known commercial outlets.

Anyway, STORK is a token that actually has utility in that it is used to pay for storage and it’s used to reward so-called Farmers, who are individuals that offer up space that acts as storage for the company’s clients.

As a side note, this is an interesting distinction that many people in this space don’t really think about – the difference between tokens and coins. One has utility, the other doesn’t. Anyway, more on that at another time.

So, STORJ has qualified for a position on this unfavorable list by serving up a negative 74% ROI in the last twenty-four hours. This seems substantial but – when you consider that the token is up nearly 2000% over the last six months (the period subsequent to its ICO) then the shift isn’t all that bad.

What’s driving the action is unclear. The company’s CFO published a piece in Forbes this week, which should have boosted sentiment. We expect this is a temporary move and one that should rectify going forward. After all, this is one of a relatively small number of companies that has a respectable and actionable business model and this should override any short-term sentiment hits longer-term.

Moving on, QRL.

This is actually one that made our list yesterday as being one of the top movers in the space, so to see it on today’s list of major decliners is something of s surprise – well, sort of. More on that in a minute. Before that, however, and for anyone that missed our previous coverage of this one, QRL is the token that underpins an effort by the token’s eponymous parent company, Quantum Resistant Ledger, to create a blockchain type system that’s immune to attacks by quantum computers.

The token had been running over the last few weeks as news that IBM and Google are coming close to realizing quantum computing devices and – in turn – expectations that a QRL system will be in high demand over the coming ten years or so.

So why is it declining now and why is it not that much of a surprise?

Well, this sort of action is something we see pretty often in the equities markets. A company runs towards some pretty substantial gains, then turns around and corrects, giving back a portion of the gains. It’s nothing to be concerned about and is almost always just representative of shorter-term operators pulling profits off the table subsequent to the run.

As such, we expect this one to pick up again post-correction and return to the overarching upside momentum.

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