Initiative Q -- the next not-so-big thing in payment processing

[Dan Druff]

By now, you've probably seen some broke-but-hopeful Facebook friend post an "invite" for Initiative Q.

Here's how it's initially framed

Initiative Q is an attempt by ex-PayPal guys to create a new payment system instead of credit cards that were designed in the 1950s. The system uses its own currency, the Q, and to get people to start using the system once it's ready they are allocating Qs for free to people that sign up now (the amount drops as more people join - so better to join early). Signing up is free and they only ask for your name and an email address.

Their website, initiativeq.com, claims right now that signing up will likely net you $17,584 in the future.

For just your e-mail address and name.

And ex-PayPal guys are behind it. Exciting!




The basic idea is that Initiative Q is going to replace credit cards, because credit cards are 1950s technology and we totally need something cheaper and better.

They will do this by creating their own currency called "Q". In order to differentiate themselves from bitcoin and other cryptocurrencies, they assert that Q is superior because Q will contain security and consumer protection (as credit cards do), while cryptos don't.

Good enough for me! Sign me up for my free $17k!

(Oh, I forgot to mention that it was worth over $31k about a month ago, so I already cost myself like $14k by not being a super early adopter!)

Oh, but wait... I can't sign up!

Why?

Because you need to click through an affiliate. See, it's invite only. That makes it exclusive and important.

Of course, there are a few problems with our new little Avenue Q currency...

First off, you don't actually get much Q for free by signing up. You only get 10%, and have to refer five people to get another 40%, and the remaining 50% comes from "future tasks". Ugh.

Second, the $17k valuation is based upon Q being widely adopted and becoming a smashing success to the point of becoming 20% of all payment transactions. What do you think the chances are of that happening?

Third, they claim that acceptance of Q is simply a chicken-and-egg problem. Merchants won't accept Q, they say, because there isn't consumer demand for it, and consumers won't demand acceptance because no merchants currently accept it. Okay, that's true. But how will giving away free Q to affiliates accomplish that? They need to get people to actually buy Q, and that's the incredibly hard part.

Oh, and what of the "ex-Paypal guys" claim? This would seem to imply the founders of PayPal are involved. They're not. Instead, one of the Initiative Q owners founded "Fraud Sciences" (I kid you not), which was acquired by PayPal in 2008. That's it.

Here's a decent article breaking it down: https://coincentral.com/initiative-q/

Of course, some are likening this to a pyramid scheme, and Initiative Q's response has been simply, "Nobody is buying in, so therefore it's not a pyramid scheme."

Uh huh.

Next time you see a Facebook friend promoting this shit, give them a smack for me.

[RS_]

Other than the whole (potential) identity thing, I don't really see a problem with it. It's one of, if not the biggest, problems facing cryptocurrency today, IMO -- the whole chicken and egg thing. It sure doesn't help that there has been massive fluctuations, though. They gotta find a way to get people using it. Worst case scenario it's a flop and you don't get any value out of it....but it's not like you're going to lose anything (other than, maybe, the whole identity thing).

[Dan Druff]

Other than the whole (potential) identity thing, I don't really see a problem with it. It's one of, if not the biggest, problems facing cryptocurrency today, IMO -- the whole chicken and egg thing. It sure doesn't help that there has been massive fluctuations, though. They gotta find a way to get people using it. Worst case scenario it's a flop and you don't get any value out of it....but it's not like you're going to lose anything (other than, maybe, the whole identity thing).

I don't think it's a scam to steal identities or harvest data. I just think the whole thing smells bad from the, "You'll make $17k if you sign up now, according to our future valuation" thing.

Whole thing seems really scammy to me, even if right now nobody is risking anything except their personal information and some social media marketing effort.

I think the chance of this working out is very small. The whole "This is a new currency" thing is already a problem, because it will turn people off who dislike (or are scared of) crypto, yet it also will fail to excite those who are into crypto, as this isn't actually a cryptocurrency.

I do believe that current payment systems are somewhat antiquated, but it's not a gigantic issue (to be honest, it works fairly well, and the fees aren't terrible). I don't think merchants are really clamoring for new payment methods. Bitcoin is useful to (mostly) anonymously transfer currency between individuals cheaply and irreversably. It's not really needed for merchants, because they already have a payment system established which works pretty well.

Anyway, they're not solving any chicken-and-egg problem by giving their currency for free to millions of people. Merchants aren't going to feel the pressure to accept "Q" because a few million people were awarded a little bit of it. And nobody is going to buy Q if merchants aren't accepting it. So the chicken-and-egg problem still exists.

This Q crap is simply trying to leverage the hype originally generated by bitcoin, where people regret not getting in on the ground floor in 2011, and now they will think they can join the ground floor of a "new bitcoin" without even having to pay anything.

Broke people on social media eat this stuff up. They think they've finally stumbled upon a great opportunity, and if all they have to do is promote it a little, what's the harm, right?

But it's not going to go anywhere, and people are just wasting their time.

[Ryback_feed_me_more]

Other than the whole (potential) identity thing, I don't really see a problem with it. It's one of, if not the biggest, problems facing cryptocurrency today, IMO -- the whole chicken and egg thing. It sure doesn't help that there has been massive fluctuations, though. They gotta find a way to get people using it. Worst case scenario it's a flop and you don't get any value out of it....but it's not like you're going to lose anything (other than, maybe, the whole identity thing).

I don't think it's a scam to steal identities or harvest data. I just think the whole thing smells bad from the, "You'll make $17k if you sign up now, according to our future valuation" thing.

Whole thing seems really scammy to me, even if right now nobody is risking anything except their personal information and some social media marketing effort.

I think the chance of this working out is very small. The whole "This is a new currency" thing is already a problem, because it will turn people off who dislike (or are scared of) crypto, yet it also will fail to excite those who are into crypto, as this isn't actually a cryptocurrency.

I do believe that current payment systems are somewhat antiquated, but it's not a gigantic issue (to be honest, it works fairly well, and the fees aren't terrible). I don't think merchants are really clamoring for new payment methods. Bitcoin is useful to (mostly) anonymously transfer currency between individuals cheaply and irreversably. It's not really needed for merchants, because they already have a payment system established which works pretty well.

Anyway, they're not solving any chicken-and-egg problem by giving their currency for free to millions of people. Merchants aren't going to feel the pressure to accept "Q" because a few million people were awarded a little bit of it. And nobody is going to buy Q if merchants aren't accepting it. So the chicken-and-egg problem still exists.

This Q crap is simply trying to leverage the hype originally generated by bitcoin, where people regret not getting in on the ground floor in 2011, and now they will think they can join the ground floor of a "new bitcoin" without even having to pay anything.

Broke people on social media eat this stuff up. They think they've finally stumbled upon a great opportunity, and if all they have to do is promote it a little, what's the harm, right?

But it's not going to go anywhere, and people are just wasting their time.

NO need for another new token coin etc.. USDC and such already exist which work on top of the ETH blockchain.. Theyre trying to reinvent the wheel after horse and buggy has already been invented.. Theyre a day late and a few cryptos short

[IamGreek]

Wonder how the Qanon folks like their Q coopted.....