After being on hold for months due to regulatory uncertainty, it seems Neonexchange’s token sale may finally be going ahead. The team announced on Twitter that they are positive they ‘will receive regulatory approval soon.’ They also said they have chosen their beta testers and will notify them in due course.
We are moving forwards with development and are positive that we will receive regulatory approval soon. Beta testing selection is closed and testers will be contacted this week.
— neonexchange (@neonexchange) July 2, 2018
The ICO has previously stated that they would need approval from the FMA (Financial Market Authority) as they would be deemed to be a security token within the jurisdiction they are operating in. The team further stated the “token sale will happen exactly one week after that announcement to give the community time to prepare.”
Decentralised Exchange With Off-chain Management
Neonexchange, or NEX, is a decentralised exchange built on the NEO blockchain. The exchange will use an off-chain matching engine capable of verifying orders and supporting limit orders and other complex trade order types.
The exchange will allow users to store their digital assets in a smart wallet chrome extension, but will still allow for instant transactions. This is hoped to be an improvement on the Neon wallet currently available to NEO and NEP-5 token holders.
While Neonexchange is not the first decentralised exchange on the NEO network – Switcheo and Aphelion have already held token sales to build their own platforms – it is expected to boost the appeal of the network by providing additional functionality. It is hoped it will provide liquidity to NEP-5 token holders, and allow them to trade tokens directly for fiat currencies.
As centralised exchanges have been plagued by hackers who have stolen hundreds of millions of dollars’ worth of cryptocurrencies, decentralised exchanges are widely viewed as the solution, but currently lack the liquidity of their centralised counterparts.