In this post, I review NEX - Neon Exchange ICO...
Disclaimer: This is my personal opinion, I am not giving biased recommendations. The article references an opinion and is for information purposes only. It is not intended to be investment advice. All information in this blog post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.
Team:
In my opinion, the team is made up of smart individuals and has the potential to achieve the set goals. I'm not sure they have a lot of experience with blockchain technology but have excellent technical, mathematical and analytical skills. According to their whitepaper, they seem to understand the differences between different technologies and tokens as well as their advantages and disadvantages. I think the team is strong and backed up with great advisors.
Neon Exchange (NEX):
Neon Exchange is a new decentralized exchange on the NEO blockchain that applies a publicly verifiable off-chain matching engine to handle the massive trading volume and support complex orders.
-- Centralized exchanges are not safe.
-- Existing decentralized exchanges are secure, but trades are executed by smart contracts on a blockchain and therefore have a huge loss of trading performance. Users can't execute complex trades.
**Optimal mix of speed and security + decentralized exchange with a fully off-chain matching engine = NEX**
NEX 3 Key performances:
1. off-chain trade-matching engine
2. smart contract where trades are executed
3. a payment service where global assets such as NEO and GAS can be converted to tokens
How to trust off-chain trade matching engine?
Taken from their whitepaper ( https://neonexchange.org/pdfs/whitepaper_v1.1.pdf)
While an off-chain matching engine brings enormous performance benefits, it also opens the door to potential trust issues between users and the exchange. How do users know that the engine is matching orders fairly, for example, and not manipulating the order books to its own benefit? To address this problem, we propose the idea of provable fair off-chain matching. Under this scheme, the off-chain matching engine follows a publicly specified deterministic algorithm. By combining this knowledge with a public ledger of the order in which trades have been sent to the exchange and fulfilled on the blockchain, any user can verify that the exchange is operating fairly. To make this trust in NEX even more explicit, in the future we plan to build a smart contract where users can submit evidence of unfair exchange behavior in return for a large reward.
NEX initial fee structure:
Taken from their whitepaper ( https://neonexchange.org/pdfs/whitepaper_v1.1.pdf)
NEX Token!!
The NEX token allows holders to claim a share of fees generated by the payment service and exchange. In total, 50 million tokens will be issued that entitle holders to a share of the fees taken by the exchange and payment service. NEX holders can claim their profits through a staking process, where claims on the staked NEX operate similarly to GAS claim calculations on the NEO network. In this way, token holders who stake NEX benefit directly from the success of the exchange services: as more fees are generated, holders will receive larger rewards.
Token Sale:
NEX will hold a token sale in Q1 2018. NEX will be incorporated in Zug, Switzerland. They are currently cooperating closely with Swiss financial authorities to ensure compliance in order to protect investors.
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