ICO Review: Neon Exchange (NEX) – Hybrid NEO Decentralized Exchange

Neon Exchange is the first decentralized exchange supporting NEO’s NEP5 tokens with advanced features.

Learn more: https://crushcrypto.com/nex-ico-review/

Project website: https://neonexchange.org/

White paper: https://neonexchange.org/pdfs/whitepaper_v1.1.pdf

Download the PDF version of the presentation: https://crushcrypto.com/wp-content/uploads/2018/02/CrushCrypto-ICO-Review-Neon-Exchange-NEX.pdf

Download the free ICO Guide which contains 6 simple steps for analyzing any ICOs to find the winning projects: https://crushcrypto.com/youtube/

Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
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What does the company/project do?

Being one of the first decentralized exchange supporting NEO’s NEP5 tokens, Neon Exchange hopes to bring high trading volume and advanced features to the decentralized exchange space so users can take advantage of both the convenience of centralized exchanges with the security of decentralized exchanges.

NEX is going to use “off-chain relay” which, instead of executing trades directly on the blockchain, potentially clogging up the network, uses side-chain smart contracts to match orders, and then they are fulfilled on-chain.

In addition, NEX will be using an automatic matching engine (which is semi-centralized) to reduce arbitrage opportunities and to allow for more complex trade orders.

To further enhance security while granting ease of access, NEX will have users store their private keys client-side (in a web browser via extension). This will allow users to login and interact with the NEX platform without uploading their private keys.

The fee structure will divided into maker/taker fees, with makers (users who put the trade order up) having a 0% fee to encourage liquidity, and takers (users who take up the order) having a 0.13-0.25% fee depending on the trading volume they generate.

Another component of the NEX ecosystem will be its Payment Service, which will be a pool of NEO and a NEO equivalent (XNEO), which can more smoothly interact with smart contracts. This will serve to further reduce friction when sending NEO because one can easily convert between the two equivalent currencies before and after transactions complete.
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What are the tokens used for and how can token holders make money?

The NEX token does not have a specific use, but will entitle its holders to a share of the fees generated by the NEX exchange. To do this, users will have to stake the tokens in a NEX wallet, and they will automatically get payouts (similar to GAS claim calculations on the NEO network).

The fees received will be a direct cut of fees across each token on the exchange. For example, if Neon Exchange is trading NEO, GAS, NEX, and RPX, the user would receive a share of each of these assets.

The token will appreciate in value if the NEX platform grows and generate more trading volume. As the platform grows, there will be more fees generated, and thus more payout, making the token inherently more valuable.
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Opportunities

– Being the only decentralized exchange listing NEP5 token and with the support of NEO Council, Neon Exchange is going to have a dominating market share specializing in NEO projects. This is especially valuable since only a handful of exchanges list NEO-based NEP5 tokens.
– The team’s technical capabilities is demonstrated by being cofounders of City of Zion, the open-source global NEO developer community.
– The platform doesn’t require NEX tokens to function, so the introduction of NEX tokens would not create a barrier of entry to use the exchange.
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Concerns

– Even though decentralized exchange is a new space, there are already many projects working on the same area. As NEX eventually expands to include Ethereum-based tokens, it would compete with all other decentralized exchanges which will most likely generate a significant amount of trading volume by then.
– Because NEX token holders share the fees generated by the exchange, the token is most likely a security token which makes it difficult to be listed on other exchanges.
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Disclaimer

The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don’t invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.

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COMMENTS (8)

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