The Neonexchange ICO
What is Neonexchange?
Neonexchange is a decentralized cryptocurrency brokerage and exchange platform. The Neonexchange team believes that current cryptocurrency exchanges are plagued with problems. Most exchanges are centralized, relying on a company database to keep track of which users own what assets. This has lead to security problems in which exchanges have been hacked and investors have lost millions of dollars worth of cryptocurrency.
To solve this problem, decentralized cryptocurrency exchanges have been created. However, these exchanges have been so slow that almost no one has used them. In addition, they have so far not allowed users to trade fiat currencies for crypto. And they have not allowed for complex orders that most users consider essential, such as market and limit orders.
Recently, decentralized exchanges have improved by using a system called "off-chain relay," in which market-makers transmit off-chain messages to find counterparties willing to fulfill orders. These new “DEX” exchanges are faster than the old ones, but still significantly slower than the centralized ones crypto investors are used to.
The Neonexchange team believes the solution to this problem is to create an off-chain matching engine. This matching engine will commit trades on-chain, but without having access to the user’s full account. This will minimize trust needed to fulfill orders without compromising speed. It will also allow for market and limit orders.
How does Neonexchange work?
On Neonexchange, a user who wants to trade Token X for Token Y authorizes the trade and sends the order to the off-chain matching engine. This engine matches the order up with a party that wants to take the other side of the trade. It then calls the smart contract to execute the order, and the two tokens are exchanged.
To prove that the matching engine is not "cheating" and giving some people better deals than others, the engine will use a publicly available algorithm to match trades and will also provide a public ledger so that any user can look up his/her transactions and make sure the engine is following this algorithm.
Neonexchange allows limit and market orders, thanks to the speed provided by the off-chain matching engine. Fiat currencies will also be tradeable on Neonexchange, through partnerships with banks in many different countries.
The NEX smart contract only has access to funds the user allocates for a particular trade, not the entire amount in the user’s wallet. Because of this, a hacker cannot get access to the full amount in a user’s wallet should the matching engine be compromised.
On Neonexchange, market-takers pay fees from 0.13% through 0.25%, depending on the volume of the individual user. Users who trade more often will pay lower fees.
NEX is a security token. Holders of the token are entitled to a percentage of the fees collected on the network. The percentage each token-holder is entitled to is dependent upon the number of tokens staked.
How is Neonexchange unique?
Neonexchange’s principal competitors are centralized exchanges like Coinbase, Bitfinex, and Binance. However, these kinds of exchanges have been proven to carry high security risks. The team is betting that most users only prefer centralized exchanges because of their speed and convenience, and will switch to a decentralized one if it has similar features.
Neonexchange also faces competition from DEX exchanges like OmiseGo, Ox, KYBERNETWORK, and WAVES DEX. But the team believes these exchanges are too slow and lack the features necessary to compete with centralized exchanges. Therefore, the team believes they can effectively compete with DEX exchanges.
Who makes up the team behind Neonexchange?
The Neoexchange (NEX) team is made up of experts in software engineering, finance, and marketing. This includes co-founders Fabio C. Canesin, Fabian Wahle, Ethan Fast, Luciano Engel, and Thomas Saunders, all of whom previously co-founded City of Zion Council. It also includes designers Nathaniel Walpole and Samuel J. Mansfield, developers David Schwartz and Evgeny Boxer, and marketers Carla F. de Paiva and Clare Saunders. Advisors to the team include Muzzamil Zaveri (KPCB, Tencent), Da Hongfei (Onchain CEO, NEO Council), and Erik Zhang (Onchain CTO, NEO Council).
More details about the Neonexchange ICO
The Neonexchange ICO is launching in June. No exact date has yet been given. The Neonexchange tokens (NEX) will cost US$1.00 each, to be paid in GAS or NEO equivalent. The team hopes to raise US$25 million in funds total.
The June public sale will comply with the following allocation strategy:
50% of the tokens will be sold in the ICO
25% will be given to the team