• Tough competition among exchanges
• Not significant and vague edge on competitors
• Strategic goal is to outperform crypto exchanges in volumes thanks to the token model designed but this parament does not indicate a fundamental leadership
• Technical specifications are not available
• Prototype is not available yet
• Roadmap is not detailed and includes not relevant information
• The model is likely to attract doubtful and questionable tokens for listing
• Token functions are poor and do not add significant and fundamental value to the project
• Maximum cap and Hardcap are overvalued
• Lack of experienced blockchain developers
Cryptocurrency market on the one hand has a high growth rate and attracts more investors, but on the other hand this popularity and attractiveness leads to a large amount of cryptocurrency exchanges dramatically increasing the competition. The share of decentralized exchanges is increasing as centralized ones are considered by investors to be highly risky. Decentralized exchanges are upgrading the whole industry as they are making it impossible to steal assets from exchange users. MoonX’s goal is to outperform the leading stock exchanges and the crypto exchanges across the globe and develop its own decentralized crypto exchange. This goal may be achieved with the designed model of rewarding for high transaction volumes. It may stimulate high trading volumes in short term but in fact is artificial and does not have fundamental grounds for such a leadership. The main obstacles of decentralized exchanges are low TPS and volumes. MoonX promises to provide users with high TPS but does not disclose details and exact numbers. As it was said above, the competition is tough both on centralized and decentralized fields, moreover, centralized exchanges announced recently to launch decentralized ones that will be closely connected to the “parent” exchanges. The example is Binance
MoonX aims to be capable of supporting a capacity of over 100 million accounts with an unmatched high transaction throughput per account. Also it aims to build a highly secure, useful, & easy-to-use decentralized exchange based on private blockchain. It will include easy cryptocurrency payments integration and even a digital arbitration system. Traders are receiving tokens for their transactions on MoonX that the company considers as mining. Early traders will have additional benefits. This system is widely criticized by the community and other exchanges as traders are interested in the large scale of transactions that increases overall trading volumes for an exchange in comparison to competitors. MoonX indicates that it will restrict fake auto trading and encourage real active trading but it is not clear how this regulation will perform. The platform only charges 0.1% as the transaction fee, which is compensated by MoonX tokens. Community members (token holders) will be given votes in decision making regarding important issues. Trading from a token to another one is allowed. MoonX will not set a limit of 3-4 base pairs. This idea will be released in December 2018 and sounds interesting, but we expect here some obstacles in trading volumes and do not see a significant edge on competitors. In addition, MoonX will also integrate an OTC desk to provide large liquidity beyond the order book. Alpha version is expected to be released in the end of October 2018. It must be noted that the project’s roadmap is not relevant to the projects and includes event dated 1571 and 2100 years.
MoonX enables every token holder to make decision based on smart contracts that will be developed. The team claims, that issuing a smart contract to each registered holder limiting them to one vote could lay the groundwork to provide a reliable and virtually flawless decision-making voting system. We see that token in the model is not designed to efficiency, but rather to achieve strategic goals.
MoonX claims that it raised 27M USD during the first tranche of private investments. These early investors are offered 30% bonus with 1-year lockup unfreezing 25% every 3 months. This tranche represents 15% of all taking supply, given 20% of token supply for tokensale. It results in 37-39M USD Hardcap and total valuation of 185-195M USD that both are overvalued on the current market. Investors in this tranche include NEO, BCH, DHVC, Bitmain, Fission Capital, NGC, L99, Node Capital, Coin One and others. 30% of tokens are reserved for mining, 20% for the team (with 2-years lock up), 20% for currency fund and 10% for marketing and operations. ICO listing will not be a source of income for MoonX as the listing is free. This is likely to result in the large list of unattractive tokens that are ignored by other exchanges.
The team includes 5 core members and 6 advisors. CEO is Nithin Palavalli - PhD in Nanoengineering and Microsystems from National Tsinghua University, PhD in Material Science and Engineering from the Universidad Carlos III De Madrid, Spain and MBA from the Cheung Kong Graduate School of Business, Beijing, China. His experience covers consultancy in algo-trading for funds across the globe. CFO did Master’s in Public Administration from Columbia University specializing in International Finance and Economic Policy Analysis and has an MBA from Cheung Kong Graduate School of Business. CTO was a CIO in the Multi Commodity Exchange (MCX), Mumbai, India. He was also responsible for evaluating and enhancing various real time systems for aligning the business strategy with technological capabilities. he has experience with Dow Jones Markets in New Jersey, building communication layers portable across the platforms that support distributed computing at lightning speed and true multicasting. The technologist Anil Kumar has been the Director of Engineering at NASDAQ and worked in Thomson Financials, Thomson Reuters, and i-Flex Solutions. According to the whitepaper, he has experience in achieving Ultra low latency on Exchanges, UI, Reporting Tools, Data Modelling, Project Management Tools, Big Data and Machine Learning, and Database management