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Marketplace, Exchanges

NEX

NEX - cryptocurrency exchange, combining advantages of both decentralized and centralized exchanges. Partial centralization helps to accelerate data processing and upgrades the list of available operations

Rating: 3.8

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/neonexchange
Details Description Risks Full analysis Team

Detailed review

Stage of product development
No prototype available


Token description
ICO date
03.09.2018 - 14.09.2018
Token price
N/A
Platform
NEO
Hard cap
25000000
Capitalization of token pool
50000000
Blockchain
NEO
Token distribution date
N/A
Consensus method
delegated Byzantine Fault Tolerance (dBFT)
Escrow
N/A
ICO currencies
USD
Bounty camping
Отсутствует
Markets
N/A
Token functions
Revenue of the NEX is distributed among tokenholders
Tokens distribution
Crowdsale (50.0%)
NEO Council (15.0%)
Partnerships (10.0%)
Company fund and E.S.O.P. (5.0%)
Risks
MARKET

NEX is likely to face strong competition among cryptocurrency exchanges

PRODUCT

No prototype available The roadmap is not detailed enough

BUSINESS MODEL

Legal risk of token being a security The team assumes changing the role and functions of the token

FINANCES

It is not clear how NEX will distribute funds raised in ICO Not financial estimations available. As the token gives an opportunity to get a part of profit, investors should understand it

TEAM

Poor marketing experience in the team It is not clear who manages the team Lack of an experienced legal specialist who could cover a security issue of the token

Full analysis
Market

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 increasing competition. These exchanges are processing transaction of about 10B USD according to CoinmarketCap. The share of decentralized exchanges is increasing as centralized ones are considered by investors to be highly risky and their founders can scam. Decentralized exchanges are upgrading whole industry as it becomes impossible to steal assets from exchange users. NEX has unique feature combining advantages of these two types of exchanges promising both decentralization and high processing speed of centralized exchanges. Also, competitors must be noted: Kyber Network, 0X, OAX, Deex, NVO, Etherflyer, Etherdelta. Although NEX states it competitive advantages, entry market strategy is not clear.",

Product

Obviously decentralized exchanges upgrade the cryptocurrency industry. Centralized one make it possible for founders to steal money and scam. NEX being majorly a decentralized exchange protects investor’s funds with smart-contract and partial centralization appears when matching orders accelerating processing speed and allowing to use more complex deals. So the team is able to control only funds in orders leaving investors’ balances protected. Also NEO smart contract will be applied with developing new tokens. It must be noted that the team has much experience in working with NEO and has developed a few NEO-based products - NEON Wallet, NEOScan и NEO-python, so much work has already done. Exact dates of ICO are not clear yet but the lottery presale starts March 14th with the minimum deposit of 1000 USD. Roadmap ends in the end of 2018 – MVP of the trading interface will be introduced in the 3rd Quartal. Product is upgrading cryptocurrency industry and its Github code is available.",

Business model

NEX business model seems to be attractive as it combines advantages of centralized and decentralized exchanges. NEX implements NEO that is uncommon, but the founders have vast experience in working with NEO, so NEO successful implementation is highly probable. By the way NEX describes in detail why NEO is needed proofing its consensus algorithm. The exchange takes fees from transaction that is common among other exchanges. This revenue is distributed among tokenholders that makes token a security. It is both attractive and risky.

Finances

Token distribution is close to common with 50% to tokensale and 20% to team (its tokens are vested in 2 years). Token price is 1 USD and hardcap is 25M USD with total toke pool capitalization of 50M USD. The exchange takes ~0.2% fee from transaction and the revenue is distributed among tokenholders. It must be also noted that no bonus is expected. Funds raised usage is unclear.

Team

NEX is incorporated by the team who have experience of NEO implementation (City of Zeon), and NEO is used in this cryptocurrency exchange. Five founders develop the product, but it is not clear who manages the project. Also founders has developed NEON Wallet, NEOScan and NEO-python. So the team is likely to integrate NEO here. Technical specialists generally have experience in developing software for 5-10 years and participating in City of Zeon projects. Marketing specialists do not have much experience. The team is not balanced well, but many experienced developers are likely to finish the project even if someone leaves the project.

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