NEX ICO Review – NEX Investment Analysis

https://neonexchange.org

ICO Details

Symbol – NEX

WhitepaperLink

When – Q1 2018

Soft Cap – Unknown

Hard Cap – Unknown

Total Max Market Cap At ICO – Unknown

Exchange Rate: Unknown


Overview

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NEX is a next generation decentralized trading infrastructure built on the NEO platform and designed to handle high throughput, massive volume, and instant transactions. NEX is addressing a problem that the cryptocurrency space has been having a difficult time to address in the past several years; that being, that there are very few Fiat on-ramps to get users from traditional and legacy currencies into cryptocurrencies and assets.

One of the largest Fiat on-ramps that exist currently is Coinbase – and while Coinbase have certainly gone above and beyond our expectations for what a company can do in this industry, it still falls extremely short in terms of requirements. Hundreds of thousands of new users per day, implementation of new cryptocurrencies beyond a few of the main offerings, and SEC troubles are some of the issues that plague the company, and solutions often either come extremely late or don’t come at all. An example of this is the recent Bitcoin Cash debacle, where Coinbase held its users Bitcoin Cash until 4 months later inn January. In addition to this, Coinbase also has several technical issues such as SegWit implementation and other tech debt:

While I could go on, suffice to say that NEX solves a plethora of the problems at hand, as well as decentralizing and streamlining the entire process. While Fiat on-ramping is not necessarily the bread and butter of NEX (they are more focused on decentralizing crypto to crypto trading), their Fiat integration will be their biggest success and will be the focus of this article. Simply put, there is so much potential in a faster, more efficient, and less technically bogged down/politicized Coinbase that hundreds of thousands and even millions of users will flock to this new platform.

Today, cryptocurrencies are primarily traded on centralized exchanges where user
funds are at risk to hackers and platform managers. Decentralized exchanges (DEXs) allow users to retain control of their funds as trades are mediated by smart contracts on a blockchain, but on-chain computation is generally too slow to keep up with high volume order books.

Neon Exchange (NEX), is a new decentralized exchange on the NEO blockchain that applies a publicly verifiable off-chain matching engine to handle massive trading volume and support complex orders (such as limit orders) that are not possible on existing DEXs. NEX also introduces a payment service and funds management layer that enables third party smart contracts on NEO to send and receive global assets as part of their computation. To fund developments and future expansion into related services, NEX will issue 50 million tokens that give holders a share of profits in its services.

 


Team

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Fabio Cesar Canesin

Fabio holds a MSc in computational mechanics and variational multi-scale modeling, and is a researcher engineer in the Oil & Gas industry. He has developed software in several large projects that have had deployed impact on billions of dollars of assets. He is also the source of the original vision for the City of Zion community, which brought together the founders of NEX. Before that Fabio co-founded and acted as CTO of Lemonaid Learning Analytics startup in Brazil.

  

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David Schwartz

Prior to working at NEX, David was a full stack developer on the Core Engineering team at the Leaf Group (NYSE: LFGR). During this time, David was responsible for building an in-house content management system and optimizing ad revenue for media properties with over 100MM monthly page views. David is a contributor to the neon wallet (ledger integration) and NEOScan projects and has a bachelors degree from the University of California, Berkeley.

da

Hongfei Da

Da Hongfei will be an advisor to the NEX platform and will add his insight and expertise to the team. Da is known as the founder and creator of the NEO Smart Economy project as well as the CEO of the Onchain company. Da Hongfei will add a considerable amount of legitimacy and trust to the NEX project for buyers and will add to the overall desirability of the NEX tokens.


Positives

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NEX looks to be the first implementation of what we can call a legitimate Coinbase competitor, creating the possibility for Fiat on-ramps and a gateway for traditional currency users to enter the cryptocurrency markets. As a reference point, Coinbase themselves have had some of the largest growth of any tech company in history, boasting 13 million users with hundreds of thousands signing up by the day. Needless to say that a competitor in this space would be extremely well positioned to profit from this kind of growing audience, as well as the fact that NEX will have more Chinese support, as opposed to the American based Coinbase.

The technology described in the NEX whitepaper is short, sweet, and to the point, giving the reader exactly the details on how they will manage to create their exchange. This is a welcome change compared to many other ICO’s which promise the world and have whitepapers lacking even general information on how they will approach their project.

Finally, backing from Da Hongfei as well as having one of the larger teams I’ve seen in a blockchain project means that NEX will have all of the support it needs to achieve its full potential and challenge the current incumbents.


Negatives

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One of the negatives about NEX is that they don’t have a basic prototype of product available for investors to take a look at – while many aspects of NEX make this an extremely appealing ICO, the lack of a prototype will damage its rating heavily. In an increasingly competitive space, several other projects such as Spectre and Leverj have shown their ability to create basic proof of concepts and MVP’s, making NEX ultimately lose out due to their lacking in this area. While I have full trust in a project backed by Da Hongfei, it still may not be enough for other investors to buy what is tantamount to a whitepaper ICO.

A second issue is that their token details aren’t published yet – it’s certainly possible that NEX makes a large cap for their crowdsale targets which make things much less desirable. Look to get into this project at decent valuations – a project of this scale has a bit more room for funding in my opinion – possibly 60 million or so being the perfect balance of funding for the company and growth potential for investors.


Conclusion

NEX looks poised to be an extremely lucrative investment for those that can handle a little bit of risk – while ICO’s are inherently risky, it is apparent to me that the stars are aligning for NEX to be a successful project in the future. A great usecase, a currently unfulfilled market, and backing by Da Hongfei make this project an overall win. Look to buy these tokens as soon as possible, either during presale, crowdsale (token metrics permitting), or day one on exchanges.

Investment Grade: 85%

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3 thoughts on “NEX ICO Review – NEX Investment Analysis

  1. I’ve heard CoZ mods on Telegram mentioned the hardcap will be $25 million. As well, the first phase of funding will have “a very low max in order to allow the most amount of investors able to hold NEX”.

    1. Correct, we also expect this to be quite the difficult ICO to get into. You’re definitely exclusive if you can get an allocation.

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