NEON Exchange ICO Analysis | Decentralized NEO Token Exchange

Name: NEON Exchange ICO Review
Item: NEON Exchange ICO Analysis | Decentralized NEO Token Exchange
Rating: 8
Author: Coindrift Team

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Coindrift Team

February 28, 2018

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Key Information

Total Supply: 50 million
Available in Sale: 50% of total supply
Hard Cap: $25 million
Market Cap: $50 million
Token Type: NEP5
Ticker: NEX
Pre-Sale: No
Whitelist: Investors register for a lottery to decide contributors. The first will select up to 25,000 participants at random to contribute up to $1000. A second lottery will then take place to fill the sale up to the hard cap, with the max contribution increased to $9000. Registration opens March 12th and closes March 30th.
KYC – For first lottery starts March 31st and ends April 7th, for second lottery starts April 8th and ends April 14th.
Public Sale Live: April (TBA)
Weekly Bonuses: N/A
Volume Bonuses: N/A
Token Distribution Date: TBA
Website: https://neonexchange.org/

8 Total Score

NEON Exchange ICO Review

Neon Exchange, or NEX, is a decentralized exchange built on the NEO platform that is designed primarily for trading NEOs NEP5 tokens. The exchange will use an off-chain matching engine to match trades through smart contracts on side-chains, reducing clogging of the main blockchain and increasing security. This will also allow for more complex trades currently not available on other DEXs, such as market and limit orders. The final feature is a Metamask type extension called NEX Wallet Extension.

Team

Market Size

Token Utility

Current Product Development

PROS

First DEX primarily for NEP5 tokens, so fills a market niche with a lot of demand and will benefit from first mover advantage.
Executing trades off-chain will make the DEX safer and faster.
Complex trades types that are currently not offered by other DEXs.
NEX Wallet extension for browsers should greatly increase adoption and ease of use, also features Payment Service for goods & services. Will also store users private keys, so further enhances security.
Plans to support other tokens, such as ERC20, in roadmap.

CONS

Token has low utility as there is no specific use in the platform as of yet, however holders can earn share of fees by staking in an NEX wallet.
NEX tokens derive value from trading of other assets, so are likely to be classified as security tokens. This introduces regulatory complications that could make it difficult to list them on other exchanges.
There are many other established DEXs currently operating. Although NEX does not compete directly yet, it will do when it launches support for other token types. It may be difficult to compete with established players, but NEX will still likely control most of the NEP5 token market.

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