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Infrastructure, Exchanges

BHex

BHex - crypto exchange and custody&clearing service

Rating: 3.8

Official contacts
Location: Beijing, China (gossips)
Web-resources:   Website
Social networks: N/A
Product source tracking: N/A
Details Description Risks Full analysis Team

Detailed review

Stage of product development
No prototype available
Roadmap
September, 2018
Exchange launching
December, 2018
Completed internal test for blockchain system infrastructure
January, 2019
Clearing platform release
March, 2019
Achieved full decentralization and autonomy
Token description
ICO date
TBA
Token price
N/A
Platform
Ethereum
Blockchain
Ethereum
Token distribution date
N/A
Consensus method
Escrow
N/A
ICO currencies
ETH
Bounty camping
N/A
Markets
N/A
Token functions
Some functions are available only for freezing some tokens on balance, tokens reserved give a right to receive passive income from all custodity&clearing operations and some airdrops. 80% of the trading comissons from BHex exchange are distributed to token holders. Also, tokens give the right in voting for listing on the exchange.
Tokens distribution
Institutional investors (10.0%)
Seed Retail Users Bonus (15.0%)
Investors Protection Fund (10.0%)
Angel Investors (10.0%)
Team (20.0%)
Community Ecosystem (35.0%)
Risks
MARKET

- The offer is likely to give no significant edge on competitors

PRODUCT

- No prototype available

BUSINESS MODEL

- Legal risks regarding security functions of the token

FINANCES

- No information regarding valuation

- Seed bonuses have no lock-up period that increases the risk of the mass sell-off

- Uncertain purpose of "Investors Protection Fund"

- The structure of the coming token sale is unknown

TEAM

- Team members achievement and profiles are hardly available for proofing

Full analysis
Market

Cryptocurrency trading recently faced significant challenges and still remains infant in terms of infrastructure development. The crucial issue is to minimize fraud risk by decentralization and other upgrades, so new projects are quite good in such modernization. That results in many good exchanges offering user-friendly services and decreasing risks in trading. The recent example is NEX that combines decentralization with centralization effectively. The only problems in the industry are too many exchanges (over 200, as Coinmarketcap reports) and the dominance of the respected exchanges such as Huobi and Binance. Moreover, well-known exchanges understand the competition from new exchanges, so they are significantly upgrading the technology behind their infrastructure. BHex idea seems to be applicable to other exchanges, but we see no obstacle for existing market players to develop and implement custody and clearing solutions. But it must be noted, that some of the established exchanges have invested in BHex, such as Huobi and OKcoin (Huobi is actively investing in exchange solutions, for example, Republic Protocol). By the way, the technology and approach behind BHex are different in comparison to other projects.

Product

The top idea of the product is to overcome current problems in cryptocurrency trading, especially legal issue and clearing. The designed infrastructure consists 4 part: 1) Fair and transparent Custody and Clearing technology, 2) Bhex Exchange Platform that that will avoid the direct ownerships of funds from the Platform, 3) Virtual Broker SaaS Platform appearing to be online brokerage services available for newcomers, 4) Bluehalix Open Protocol contributing to better permeation on BHex to other exchanges. No MVP available now. Yellow paper is short and mostly covers the information on the website. As the roadmap indicates, product design and development are already finishing. In August the product faced testing and investors may expect the official exchange launch on September. In December internal tests with blockchain infrastructure will be completed. In March 2019 BHex aims to release decentralized Bluehelix system and clearing platform v1.0 and achieve autonomy.

Business model

Tokens have a few functions. They give a discount of 80% to all operations on the platform; some functions are available only for freezing some tokens on balance. Also tokens reserved give a right to receive passive income from all custodity and clearing operations and some airdrops. Also, it gives the right in voting for listing on the exchange. As the result, tokens in the system seem to be attractive and relevant.

Finances

The company is going to issue 2.1B tokens. Investors are given 35% of all tokens on different terms. First are institutional investors - their 10% are vested immediately after trading on the secondary market, also they may choose 2 years locking period (with quarterly vesting) or 6 month vesting period (with monthly vesting). Seed investors receive no locking period for bonus tokens. Angel investors are vested yearly linearly in a total period of 4 years. Also, BHex disclose its main revenue streams: 0.1% trading commision, 10% of brokers' income, 10% from the revenue of partners using its code. As the price is unknown, other more significant financial metrics are unknown and to be announced soon. Some of the well-known investors: Huobi, OKcoin, Node Capital.

Team

The team includes 10 core members from China. CEO has relevant experience to deliver BHex project - he has been a CTO in Huobi for 3 years and previously worked under developing Level2 technology. on traditional stock markets. Also he has been a CTO in Damai for 3 years and in Yoka.com for 4 years. In addition, he is in leading positions in respected IT organizations like ArchSummit and GIAC. BHex CTO has been working in IT since 2006, being a Senior System Engineer in Sina for 1 year, Team Leader in Weibo for 4 years and other startups for 3 years. Director of Platform Systems has been an architect in Baidu for 10 years. Other team members have extensive and relevant experience (in average over 10 years) in finance, trading, marketing and management.

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