The first professional digital rating agency DigRate has assigned A2 investment attractiveness score to NeoNexchange – medium-to-high probability of long-term investment return, the level of project development potential is above average.
NeoNexchange is a decentralized trading platform for currency exchange. First of all, this platform is an exchange, the main distinguishing feature of which will be the Off-Chain Matching Engine (search and closing of the purchase / sale operations into the finished transaction). That is, the search for orders to close the transaction will be made outside of the blockchain, that will significantly speed up the throughput (NeoNexchange is potentially able to process and execute more than 100,000 trades per second). Thus, the product created by NeoNexchange will combine the high productivity of centralized exchanges and the security of decentralized exchanges.
The project developers have already submitted an alpha version of the NEX Google Chrome extension, which will be used to conduct the crowdsale.
The project team includes founders of the open blockchain developers community – NEO - City Of Zion. The founders of the project are also developers of the project with a high level of competence in the blockchain field, and NEO blockchain in particular. The team is represented mainly by specialists from the tech field and balanced by experienced financial advisers.
However, the project should attract more marketing, management, finance and legal specialists on a permanent basis, according to DigRate analysts. Some aspects raise questions: for example, it is not clear at what stage of implementation the legal part of the project is to date. There is not a single legal document providing certain rights or disclosing risks to potential investors in open sources. There are also no legal documents of the legal entity and any information about the company as a whole. The greatest concern is the positioning of the NEX project token as a security token by team members. The NEX token will not be a means of payment within the platform and will be used to distribute part of the platform profit between NEX holders. Despite the fact that this token feature will attach value to NEX as the platform develops, the project team will face bureaucratic difficulties associated with the legalization of NEX as a security. In the light of constantly changing rules regarding cryptocurrencies, registration of a token as a security will be impossible in many countries and remains in question in a number of other countries. Positioning NEX as a security token will also make it difficult to list token on other exchanges.
In general, the project is one of the most anticipated in the crypto industry as decentralized exchange that supports NEP5 tokens is necessary for the further development of the market. If the project team succeeds in timely settling all legal issues and NEX will be recognized as a security legally, then plans of the team can be successfully implemented, and NeoNexchange will present a completely new standard of exchanges and the first of its kind decentralized exchange with a performance comparable to modern centralized exchanges.
Pros and cons of the project, as well as our recommendations, can be found in our report.