Every day dozens of new tokens are announced. We go through them all to find the cream of the crop – giving you the scoop on top ICOs before anyone else.
After looking over 153 tokens announced this week, we’re picking NEX as our ICO of the Week. This is a much-needed project which promises to be a game-changer for the NEO ecosystem.
Competitive Advantage – Key Component of NEO Ecosystem
Unlike other Dapps which solve a single, niche business need, NEX is a much-needed, key component of the NEO ecosystem.
Until now, there’s no easy way to trade NEP-5 tokens – the NEO equivalent of Ethereum’s ERC-20 tokens. That has made NEO ICOs a risky proposition, as very few exchanges have supported these tokens so far, meaning there is no market to trade these tokens and thus little chance of making a good profit on them.
NEX changes that – offering an Etherdelta-like platform for NEO NEP-5 tokens. Just like EtherDelta, NEX will allow users to trade tokens using trustless smart contracts, rather than having to deposit their crypto into a centralized exchange. This not only eliminates risk and reduces fees, but means that any NEO ICO will be immediately tradeable after launch.
For NEO, this is a huge game changer as it means ICO’s no long need to worry about exchange support in order to be attractive.
NEX is not only creating an exchange, but also will be creating the supporting elements as well. This includes a payment wallet extension – similar to Metamask. This allows users to easily connect a NEO wallet to NEX. Speaking of which, Neon Wallet, the new light wallet for NEO that promises to make using NEO much easier, is also developed by the same people behind NEON exchange.
In addition to the wallet support, NEX plans to offer a payment service which allows for a fiat bridge, allowing users to buy NEO, GAS or even NEP-5 tokens directly with fiat.
Finally, NEX is planning to support Alchemint, a stablecoin project for NEO, basically allowing users to trade NEO against stable, tether-like cryptocurrencies.
Long story short – NEX is much more than a simple Dapp built on NEO, but an eco-system enhancing component which if successful, will completely change the game. With an ether-delta like DEX, Metamask-like browser light wallet, and stablecoin, NEO will be able to start competing with Ethereum as a smart contract platform for Dapps and ICOs.
Risks
NEX is attempting to do a lot, and there is a good chance some of the pieces of the puzzle may fall though. Fiat integration is probably the biggest risk, as bank partnerships have been notoriously difficult to get for crypto companies. However, the wallet, and the exchange are aspects which we don’t see the team having any trouble implementing. Besides their own technical talent, they also have NEO leadership Da HongFei and Erik Zhang as advisors.
That means the core value proposition of NEX has little execution risk. In addition the hype around the project is so strong that there is actually a lottery to be whitelisted. We see the chances of this ICO not doing well as fairly low.
Summary
If NEX even comes close to fulfilling its goals, it will have already revolutionized the NEO ecosystem. By building a decentralized exchange for NEP-5 tokens, as well as the infrastructure to support it, they will allow NEO to play on the same field as Ethereum does now. We think this one is a winner and are happy to pick it as ICO of the Week.
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