BlockEx Basic Review

Project details

Name: BlockEx (DAXT)

Ticker symbol: DAXT

Project type: FinTech, Platform, Financial Services

Extended company description: DaxP is a trading platform for all classes of assets and tools using Distributed Ledger Technology (DLT.) [32]

Company: BlockEx Ltd

Website

Whitepaper

ICO details

Public ICO launch: 11.12.2017

Public ICO end date: 31.12.2017 [2]

Crowdsale duration (weeks): 4,3

Token type: ERC-223

Token supply: 130 000 000 [2]

Tokens available for purchase (Pre-Sale + Public ICO): 71 500 000

The purpose of attracting investments:

1 DAXT price: 1 EUR

Accepted payments: ETH, BTC, Fiat (EUR)

Bounty: Not announced

Token role: Functional

Team

Team (number of people): 43

Advisors and partners (number of people): 6

GitHub: Not published

Social media

Twitter: Posting: 203, Subscribers: 277

Telegram: Subscribers: 60

Medium: Subscribers: 14

LinkedIn: Subscribers: 663

Facebook: Subscribers: 174

Project information

Blockex (DAXT) is a digital asset exchange platform managing the entire life cycle of digital assets based on blockchain, including creation, release, exchange, payment and settlement. [1]

According to the project team, DAXT is aimed at rebuilding the ICO market, guaranteeing equitable and transparent access to the distribution of ICO tokens. DAXT owners will be able to include themselves in the list for the ICO pre-sale via DAxP (DAxP includes a digital asset creation tool, plus exchange, clearing, payment, registry and brokerage software).

DAXT will provide the following services: [2]

  • BlockEx DAxP will support several traditional and non-traditional asset classes.
  • Consulting services.
  • Access to pre-sales of ICOs on the platform.
  • Pot Allocation System (if the presale is exceeded, tokens are distributed in proportion to the amount of funds, so everyone can receive tokens.)

The BlockEx platform provides the following services:

Partners: [35], [36]

Advisors: [33]

Eric Benz (LinkedIn) — Managing director at Cryptopay, senior business advisor at Veridu.com, Xbterminal Ltd. Co-Founder of Credits. More than 10 years of experience in the FinTech


Trent McConaghy (LinkedIn) — Founder and CTO of Ocean, Bigchaindb, IPDB. Previously spent 15 years developing distributed AI systems to help manage Moore's law


Jon Matonis (LinkedIn) — Founding Director of Bitcoin Foundation, chairman of Globitex, member of the board of directors of First Global Credit. Jon's career includes senior influential positions at VISA International, VeriSign, Sumitomo Bank and Hushmail


Roger Ohan (LinkedIn) — over 30 years of experience in financial services. Since 1992, CFO at Wilberfoss Inc., a nonexecutive director of a multi-$Bn hedge fund. Former managing director at Citco Fund Services (UK) Ltd., Chemical Bank (now JPMorgan Chase)


Scott Walker (LinkedIn) — Business angel and serial entrepreneur. Co-Founder of Phonecheck, TeenSafe, National Data Corporation and founder of New Motion.

Investments attracted: N/A

Conclusion

The project has experienced professionals, partners and advisors behind it. Unfortunately, the project has not attracted much attention from the blockchain community (compared to other successful projects), but we are confident that the service provided by the project will be useful to and used by the community.

Strengths of the project:

  • Individual strategies for ICO, technology and business development have been created.
  • It is entering the fast-growing market for ICO projects.
  • The project includes well-known founders and advisors.
  • The project has an MVP and primary operating results.
  • Tokens play a functional role in the project.

Weaknesses of the project:

  • Very confusing documentation.
  • The project does not disclose platform algorithms, but promises to create an open repository in the near future.
  • The project does not have a bounty program.

Market and industry

According to Coinschedule, in 2016 the amount of funds raised on ICOs during the year was $96,389,917, with 46 crowdsales. In 2017, the amount increased by five times to $3,611,293,912, with the number of staged ICOs being 228. According to Infoholic Research LLP report, the cryptocurrency and blockchain technology market will grow by 35.2% in the next five years. Therefore, you can expect an increase in the number of ICOs. [29], [30], [31]

The white paper also confirms the growth of the ICO market in the last few months. As evidence of this growth, the team provides illustration of the exponential growth of the aggregate market capitalization of BTC and ETH (primary means of investing in ICOs). Capitalization has increased from about 50 billion dollars in July 2017 to 95 billion dollars in September 2017 (the growth rate is over 90%). Also, the introduction of regulatory documents for the ICO market is cited as indirect evidence of public interest in the market. [2]

Comment: As is clear above the market is growing rapidly, the industry is gaining popularity, and it is therefore possible to take its niche in the market. However, there is no market entry strategy evidenced in the white paper. The token that is available at the ICO is expected to be a buffer between the ICO campaigns and the collective purchase of tokens.

Competitors

Based on the description, the project organizes the collective financing of ICO projects, while receiving  bonuses from the campaign via an established syndicate (a ‘Groupon for ICOs’). [2]

We believe that this project is a microfinancing tool, which allows us to compare it other similar platforms and tools:

Lykke — a platform for trading digital assets and for taking projects to ICO, receiving advice and support from the team.
Bittrex — digital currency exchange.
Cryptopia — digital currency exchange.
Yobit — exchange, exchanger and wallet.

Resume: According to the project, the main difference from competitors is the specialization of DAXT in the primary market for the placement of tokens (Pre-Sale, ICO); also in receiving additional bonuses for early purchase.

Engineering features of the platform

The BlockEx platform is built on the basis of blockchain technology using smart contracts. DAXT supports the ERC20 standard. [2]

The DAXT: During the ICO pre-sale for BlockEx, DAXT tokens give holders access to a Pot Allocation System hosted by the BlockEx ICO market. This means that it can be used to provide high-quality, compatible ICO tokens. If the presale is exceeded, the duty distribution system allocates tokens in proportion to the amount of funds signed, so everyone can join the fun.

Functionality:

 

Technological description

In addition to DAXT the platform features the following:

  • a pot allocation system — i.e. a platform distribution system that distributes tokens between buyers.
  • In the event that purchase demand exceeds the number of tokens on sale, the system automatically allocates the entire amount of tokens according to shares based on the number of tokens the buyer is requesting, after distribution, remaining funds that were not exchanged for tokens will be returned to the buyers together with some of the unused DAXT.

In the event that tokens remain after the sale, the system returns them to the company that placed their ICO pre-sale on the BlockEx ICO market.

The Pot Allocation System scheme, distribution of tokens during the ICO pre-sale:

The platform will operate as follows: [2]

The funding mechanics inside the ICO Market function using IDAXT, an internal special purpose token specifcally created for each individual ICO run on the platform.
Initially, all tokens will be allocated to the ICO market itself. Later, during the ICO process, part of the distribution will be transferred first to the address of the Pot Allocation System and SALE contract for distribution during the selling process.

  1. The issuer first provides all necessary information (creation of an account and specification of ICO details)
  2. Creation of a Pot contract (reallocation of tokens), SALE contract (deposit of the number of tokens required), and an ICO token contract (tokens issued during the ICO)
  3. Pre-ICO and ICO take place
  4. After the completion of all pre-sale allocations for the ICO, any unused tokens from the ICO (if any) will be returned to the market, and the addresses and data associated with the issuer will be erased.

IDAXT: IDAXT is a special purpose token, specifcally created for each individual ICO run on the platform. It represents the full ICO funding target in the nominated currency of the ICO. It is issued fully pre-mined at the start of each ICO, and solely controlled by the issuing platform. The funding mechanics inside the ICO Market function using IDAXT. IDAXT is not a single token, but is the name of a family of internal, target and unique tokens that will be created solely to support internal processes and will not be available for direct trade. However, these tokens will be useful for tracking commitments and will provide the required level of transparency expected from any ICO.

Comments: In addition to the DAXT token, the system also includes:

  • A Digital Asset Exchange Platform (DAxP)
  • A global trading platform for all classes of assets and instruments using a distributed ledger (DLT).

 

Technological Roadma

Roadmap (Technical):

In the future, with the development of the technology and data amount it is planned to implement the following stages: [2]

  • 4th Quarter of 2017 — launch of exchange services, integration of the FIX protocol, introduction of brokerage services, trade with a leverage level
  • 2nd Quarter of 2018 — operation using smart contracts
  • 3rd Quarter of 2018 — launch of the crypto/fiat exchange. 

Comments: As you can see from the roadmap, the project intends to create a full-fledged ICO market, but before it can do that it will be a brokerage platform.

GitHub comment: The team assures us that an account in the open repository will appear soon. (Code is not yet viewable on GitHub, but is apparently coming soon).

Documentation

We have analyzed DAXT's site and documentation for sufficiency and consistency for making an investment decision.

The documentation consists of the white paper, available in English. It describes DAXT in sufficient detail, but the development and market entry strategies have not been disclosed. The project team uses a large amount of its own terminology, which does nothing for quick comprehension (for example: DAXT, DAxP, DACT, IDAXT).

The website includes information about the project, the staging of the public ICO, the advisors and the team. The site is available in English. The site has a handy link to the working BlockEx platform. [1]

Resume: The documentation provides insight into the project. However, we recommend that the project uses fewer proprietary terms in its descriptions.

ICO

Public ICO launch: 11 December 2017

Tokens to be released, % 55%

Token type: ERC-223

Accepted as payment: ETH, BTC, Fiat

1 DAXT cost: 1 EUR

Crowdsale period: 4 weeks, until December 31, 2017

DAXT enables buyers to access the pre-sale of tokens on the market BlockEx ICO, to buy tokens right before the public sale and receive a guaranteed distribution of tokens during the ICO pre-sale through a Pot Allocation System. To purchase tokens on the ICO Market, you will need to add 2.5% of the purchase amount in DAXT tokens; tokens will be burned after use.
DAXT is issued as a ERC20-compatible token.

Token issue limit: 130 000 000

Advantages for token holders: limited-quantity tokens; tokens are functional for use on platform services; they can also be sold.

Maximum planning amount of profit: 35 700 000 EUR

Bonuses: Institutional Pre-sale 50% | Public Pre-sale 25%

Tokens are sold in several stages (ICO Roadmap):

Comments: There is a blocking period from 1 to 3 months for the secondary sale of the token during pre-sale. DAXT tokens are available for purchase only through the ICO Market. Additional tranches or Seasonal DAXT Coin Offerings will appear from time to time. To purchase DAXT, it is necessary to register on BlockEx DAxP and undergo an AML (money laundering) and KYC (Know your customer) verification. According to the team, in future it is planned to enable use of DAXT for payment of commissions on all BlockEx Market services. [2]

 

Bounty

Comments: Currently the project does not currently have a bounty program.

 

Tokens and capital distribution

Tokens and capital are distributed according to the following scheme:

Resume: Tokens do not affect the distribution of shares in the company. The reward system is set up so that it is more advantageous to buy tokens earlier.

Development plans

Business Roadmap:

According to the project, BlockEx already has traction:

 

  • 3 billion GBP worth of ICOs in approval pipeline
  • 1.8 billion GBP pipeline of blockchain bonds
  • 5 white label brokerage clients
  • accepted by FCA Regulatory Sandbox to test bond issuance tools
  • accepted to AIFC Sandbox for security based tokens
  • partnership with large CSD for Golden Gate
  • partnership with OpenText for blockchain trade finance

Resume: The project has developed a separate business roadmap on the development of the project. The obvious plus is that the project already has development metrics.

Team

The team consists of 43 people, as well as 6 advisors. Information on the core members of the team (LinkedIn):

Adam Leonard (LinkedIn) - CEO. An experienced entrepreneur and manager in the fields of innovation, fintech and business development. Since 2009, the founder and managing director of Trebax Group (marketing, consulting, innovation). Formerly: Managing Director of Threader Media, co-founder/development director at Numen Solutions (payment company), Imaging & Sample Supervisor at Hudson's Bay Company;

Aleksander Nowak (LinkedIn) - Director of Information Technologies (CIO). COO at Xbterminal Ltd (Bitcoin POS systems). For more than six years he specialized in maritime and river transportation safety. Formerly: Director of Aspida Maritime Security (UK) LTD, Maritime Security Professional at Various, manager of logistics, coach of the British Armed Forces;

Alex Kotenko (LinkedIn) — Head of Blockchain development. An experienced developer and manager. CTO at Xbterminal Ltd. Formerly: Project manager at All Jobs LTD, Detective group LTD, Team Leader at Zfort Group, Web Developer at Web4pro.

There are 7 other management level staff and 33 general staff in the team.

Comments: The entire core team indicates its affiliation with the project.

Resume: 29 people identify their affiliation with the project on LinkedIn. The team also has the following experienced specialists: Brokerage Technical Director, MD Capital Markets, Head of OTC Trading, Director of Finance and Structured Products, MD Corporate & Institutional Banking, Director of BD USA, MD BlockEx Asia. We note that some of the team already has experience with blockchain technologies.

Marketing

Information about the project is available on Twitter, Facebook, Medium, Reddit and Telegram. There is no bounty program.

The project is active on social media. News on Twitter, Facebook and Medium is regularly updated. The team is communicating with users in Telegram. The format of articles on the project suggests that they were primarily ordered by the project.

Comment: The interest in the project is not yet high. The main marketing campaign is deployed on Twitter and Facebook. [1]

Analysis of site traffic based on the Similarweb.com data showed the following: [6]

Comment: 38.32% — direct link traffic; 52.31 – referral links.

Traffic through search: 4.05%

Referral links: 52.31%

Resume: Based on the available data on the project, it can be concluded that users are beginning to show interest in the project. Last week the project showed only visits via direct link, but now we can see a growing share of referral links, which shows that blockchain community are starting to discuss the project (including publications about the project). The team is also conducting an advertising campaign on social media (Facebook and Twitter), as well as communicating with users via Telegram. There are various publications in the media.

Contacts

The developers may be contacted using the links below:

Website

Twitter

Telegram

Medium

Reddit

LinkedIn

Facebook

Bitcointalk

Useful links

1. Website

2. Whitepaper

6. Similarweb

29. https://www.coinschedule.com/stats.php?year=2017

30. https://techcrunch.com/2017/09/07/ico-report-q2-coindesk/

31. https://www.infoholicresearch.com/report/cryptocurrency-and-block-chain-market-trends-2016-2022/

32. http://icorating.com/project/771/BlockEx

 

 

The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.

Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.

We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.