NEX Exchange(NEX) – A blockchain based marketplace for connecting service providers with customers
Author: Nikolay Dimitrov
Date: 16th of June 2018
Do not make investment decisions based on this article – read the disclaimer before you proceed and leave the website if you disagree with it.
It is 16th of June 2018 today. This review takes into consideration investing in the NEX project(NEX) – ICO at a price of 1 NEX per USD.
We do not endorse the ICO’s we are writing reports on – we just have a big pile of ICO’s that people have mentioned to us could be worth taking a look at and we are going through them one by one. All shared personal statements are a personal point of view.
Note: Article was written on the 27th of March, but the info still applies.
Short description of the project:
NEX or the Neon Exchange is envisioned to be the first decentralized exchange (DEX) on the market, built on the NEO blockchain, that will support all NEO’s nep-5 tokens. The main features of the exchange will be to combine the enormous volumes that a centralized exchange with large orderbooks can handle and the security that a decentralized exchange offers.
In-depth project overview:
Today the biggest volumes and where most of the cryptocurrency trading happens is on the centralized exchanges. This is due to the fact that there are mostly centralized ones at the moment and that they can handle large volumes without slowing down. Just two years ago the 24 hour trading volumes for the whole crypto-world was less than 20 million dollars and now we have almost daily 20 billion dollars plus. This shows the enormous growth that this sector has seen. The exchanges had to adapt really fast, some did and some did not. Being able to handle the large volumes, though, comes with a great downside – the traders do now actually own their cryptocurrencies, because they are sent to the wallets of the exchange. This constitutes a big security and trust issue. Firstly the owners of the exchange could potentially use your funds without your knowledge or directly run off with them. Also some exchanges do now offer the free tokens received when there is an airdrop happening. This is why traders are always advised to store their long-term funds on a desktop wallet or a nano ledger. Another big problem of the centralized exchanges are hacks. They do happen and millions of dollars worth of cryptocurrencies, belonging to the traders, get stolen. Some examples are the Mt. Gox hack in 2011 and the Bitfinex one in 2016, showing that also the big players are not 100% secure. Not owning your funds in an extremely volatile, young and immature market is a big risk. The slightest negative news can bring the market capitalization down by 20, 30 or even more percent in a matter of hours. A little bit of panic could lead to chain-reaction with unpredictable outcome. So better be safe than sorry.
Now we see a lot of new projects aiming to create the best decentralized exchange. Even the centralized ones are realizing that they have to adapt quick and some have announced that they are working on becoming decentralized. One of the new projects is set to deliver a very good product that has the attention of the crypto community is the Neon Exchange (NEX). They want to combine the big volumes of the centralized exchanges with the security of a decentralized one, where the traders own their funds by having their private keys stored on their browsers. The trades are usually done by a smart contract on-chain which is secure and trustless, but cannot handle big volumes and thus complex trades, allowing the opportunity for arbitrage on stale orders. The Neon exchange offers a solution to these problems. The order matching will be done off-chain, excluding the most strenuous task for computing power and not clogging up the blockchain and the smart contracts. Then, when the orders are matched off-chain, the get committed on-chain with a provable deterministic behavior. The increase in speed and performance will allow the NEX exchange to apply more complex orders like limit or margin, which the other decentralized exchanges are not capable of doing. But by matching order off-chain some trust issues can arise between the traders and the exchange, that are not present in a smart contract execution on chain. The users cannot be sure that the off-chain engine is matching the orders fairly and is not manipulating the order books to the benefits of someone else. To alleviate this issue NEX introduces “provable off-chain matching”. The off-chain matching engine is set to follow a publically specified deterministic algorithm. All the actions of the engine are made public and can be verified by anyone. To increase the trust in themselves, NEX have plans of creating a smart contract, where users will be able to send proof of unfair exchange behavior and get a big reward for it.
NEX have opened registration for the KYC(know you customer) process.
Also registrations for the participation in the ICO have been opened the 12th of March until the 30th of March 18:00 UTC. When registering you enter a lottery and if chosen you will be able to participate in the first round of the ICO.
On the 31th of March, 18:30 UTC, the winners for the first stage will be announced – 25,000 of them. Everyone will be able to contribute up to 1000 dollars.
On the 8th of April. 18:30 UTC, KYC process opens for the winners from the first stage and open spots for unregistered users. Here the contributors can buy up to 9,000 dollars worth of NEX tokens.
The cost of a NEX token is set to be 1 dollar.
Minimum contribution during both stages will be 1 NEO.
The total supply is 50,000,000 NEX
The number of tokens sold during the ICO will be 25,000,000 NEX.
The hard cap of the ICO is 25.000.000 dollars.
The ICO will be conducted in April, exact date is still not announced. UPDATE – It is the 16-th of June, 2018 and the ICO has still not taken place, as per the ICO-website, the ICO is to be announced during June.
Website – https://neonexchange.org/
ICO Website – https://neonexchange.org/token_sale_info/index.html
Roadmap –Directly on the website in the top menus.
Whitepaper – Also directly on the website in the top menus.
Token Utility – The token will be used for receiving part of the income of the exchange. So it will be a security token and not owning any will not be an obstacle for using the platform.
How does the cryptocurrency name sound (does it sound legit and like a good brand name) – The name is short and catchy. Why did Antshares rename to Neo? Amon the leading names – Eos, Tron, Dash. Short names are on.
How does the logo look – The logo is really clean. Most projects play it like that.
Who is behind the cryptocurrency, are they shady figures, or have they placed their names and pictures on the website; what is their track record and reputation – The Team looks really solid, all have a great background (according to the conventional LinkedIn accounts, if someone is planning on investing, they should really go deeper in research of the names, but i did not find anything alarming in Google), plus a lot of them bring heaps of experience from the NEO project. Just check them out!
What is the limit on supply of coins in circulation – 50 million NEX.
What the project survival relies on – this one just looks great, I think they will have a fast and solid growth (userwise). Maybe not like Binance, but good enough and they have the potential to be big as the whole community is in anticipation.
Will this project survive a cryptocurrency bubble burst and does/will it have enough of a following that needs it every day – Lets say that if there are 20 Exchanges left after a burst they should be one of them, if not top 10!
Is there a Bitcointalk forum Announcement thread – Yes
How many pages is it –8, people prising the project and some complaining that the ICO was postponed.
Is there a Twitter profile for the cryptocurrency and does it post regular updates, how many followers – Yes – https://twitter.com/neonexchange -with 63k followers, but no daily updates. Over all the comunity is not happy with the team not updating frequently.
Is there a Facebook page for the cryptocurrency and does it post regular updates, how many likes – No.
Telegram link – https://telegram.me/NEXcommunity but this is not an official group as it is created by the community. There is no official one.
Is there a youtube channel – Yes with two videos- https://www.youtube.com/neonexchange
They really do not count on hype!
This is a very interesting project. You can see professionalism in all their online presence. The team has a lot of experience in their fields and looks strong. The whitepaper is a lot more technical than most whitepapers, but it does not require coding experience to be understood, just more concentration and crypto experience. With being only 12 pages long, it provides a lot of information. Such an exchange is deeply needed in the crypto-world, so I expect a big audience and adoption.
The ICO structure is a very interesting one. They are not allowing for a small amount of people getting a big portion of the tokens set to be sold during the ICO. In this manner this small group of people, called whales, can manipulate the price of the token and thus getting a bigger position for themselves in time and being able to manipulate the price even further. A very fair, and sound, conduct of the ICO. They are focusing on fair a lot. This is a very strong foundation for building a long-lasting project with a faithful community. I specifically, have not invested in ICO’s for a long time, but I am considering doing so.
Trading Bitcoin and other cryptocurrencies can be done peer-to-peer(p2p) or on the exchanges where you have security. The safest exchanges are usually the top volume exchanges as being in the top they have all eyes on them and can not afford to not operate properly. Down are some that we are using and have not had any problems with:
If you have not created an account on the biggest cryptocurrency exchange you can do it here binance.com It is fast and free. This is a safe link, verified by us, going directly to the exchange, as there are many phishing sites, please be aware and careful. Also note that the exchanges close registrations for an undetermined timespan when they get overwhelmed, so even if you do not intend on trading now, someday you might decide to and not have the opportunity.
And the biggest fiat currency to crypto gateway coinbase.com, where you can get a 10$ bonus following this link.
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Thank you for your time spent reading this article. The internet is huge and I might have missed some information or read something that is not true. Feel free to criticize and point out any mistakes. In fact, please do criticize, this is the best growing mechanism. All good luck to all crypto-enthusiasts. Let us make some money.
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