QSP is the native token of Quantstamp, a company that audits blockchain protocols and maintains a decentralized auditing tool called the Quantstamp Security Network.

The network pays out QSP tokens to validators that automatically scan Ethereum smart contracts for common vulnerabilities. The protocol also issues automated bounties that reward white-hat hackers who inform smart contract developers of bugs they have found.

QSP was released in November 2017 at 18 cents per token, shortly after the project raised about $30 million in an initial coin offering (ICO). The token launched with a total supply of 1 billion tokens.

In January 2018, the Ethereum blockchain-based token hit its all-time high of 87 cents. It fell along with the wider crypto market in the subsequent months, and by December 2018, QSP had sunk to just over 1 cent.

During the crypto boom of 2021, QSP’s price rose to a high of 13 cents in early April before falling to 2 cents in July. A brief revival in January 2022 brought the token to 9 cents, but it had fallen back to 2 cents by June 2022.

Developers can upload their smart contract code to the Quantstamp Security Network and then spend QSP tokens to buy security scans. These are published on the blockchain for anyone to see.

A decentralized network of user-run nodes coordinates the network and earns QSP for doing so. Scans are performed by validators who earn QSP for scanning smart contracts for bugs. The validators use off-chain, third-party analyzers such as Mythril and Securify to check for common vulnerabilities. Human bug finders can also earn QSP for reporting major bugs.

Although the protocol is based on Ethereum, QSP can be used to pay for scans of smart contracts based on any blockchain. QSP is also a governance token and can be used to propose and vote on network upgrades.

In 2019, Quantstamp launched the second iteration of its security network. This made the code open-source, allowed nodes to be run by anyone (removing a condition that nodes had to be whitelisted by Quantstamp) and updated the protocol’s user interface.

Quantstamp was founded by software engineers Richard Ma and Steven Stewart. The pair graduated from the 2018 class of Y Combinator, a program used to help startups. In 2019, Quantstamp raised $3.1 million in a seed funding round that was led by Nomura Holdings.

Quantstamp filed its ICO under the U.S. Securities and Exchange Commission’s Reg-S exemption, which allows U.S. entities to raise funds abroad. U.S. and Chinese buyers were excluded from participating in the ICO.

Separate from the Quantstamp Security Network, Quantstamp runs an auditing service. This comprises an independent audit of code and documentation by three or four auditors employed by Quantstamp. In July 2020, the service audited Ethereum 2.0 client Prysm. Later that year, it completed an audit of Teku, another Ethereum 2.0 client.

In 2018, investors in QSP’s ICO criticized Quantstamp for accepting other currencies, such as ether and the U.S. dollar, for its auditing services. By doing so, the investors alleged that Quantstamp had limited the utility of QSP. At the time, Quantstamp hadn’t launched the Quantstamp Security Network. Quantstamp said it accepted those currencies “by necessity” because its ICO excluded U.S. and Chinese investors.