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NAGA Coin Rating Review


Investment Rating

Expiry date : Expired 15 Mar 2018


We assign the NAGA Coin project a “Positive” rating.

NAGA Coin gives the impression of a serious project that has many strong sides: the project has a strong team of managers with proven experience, and most importantly it is a working business whose shares are traded on an organized exchange. In addition, the idea of building a business on the hottest topics of the fintech industry, such as online brokerage and digital asset trading may be prospective.

The fact that the business successfully passed an IPO on the Frankfurt Stock Exchange makes the project at least interesting and in some way unique in the current context of the ICO industry. In addition, an important factor is the existence of an independent management board of directors and participation of funds such as Fosun International in the capital of the company.

The strategic risk, which from our point of view is the main one, is uniting too many different services under a single utility token. The synergistic effect of such a combination is difficult to calculate and the uncertainty of the future evaluation of NGC token remains high.

General information about the Project and ICO

NAGA Coin is a project for creating an original ecosystem based on a variety of services. The final ecosystem will include two marketplaces - for trading in the financial and in-game item markets, as well as a number of additional services whilst aiming to be the most independent and full-fledged ecosystem for consumers based on the ERC20 NGC token.

The project is led by NAGA Group AG, a young but well-known fintech group that has developed several successful projects. Among partners of the group are such giants as Hauck & Aufhaeuser and FOSUN (Chinese largest private investment conglomerate), with a share in the company's capital. In addition, the German Stock Exchange (Deutsche Börse AG) has a 40% stake in the Switex project.

The final view of the NAGA ecosystem will include existing projects:

  • SwipeStox – a platform for social trading (the platform has several prestigious fintech awards, including the win at Finnovate-Europe 2016);
  • NAGA Markets Ltd. - provision of brokerage services (Forex, CFD).

The projects being developed are as follows:

  • Switex – a marketplace for virtual game products.
  • NAGA Wallet – a multifunctional multicurrency wallet.
  • NAGA Academy – an educational platform in the field of finance.
  • Market Guard – a service providing aggregated market data and analytics.
  • P2P solutions for trading and exchange market.

Within the framework of the NAGA Coin ICO, it is proposed to issue infrastructure-relevant NGC tokens. They will become the basis for all services and platforms, financing the development of a game marketplace and auxiliary services.

NAGA ​​Group AG ​​Website​

NAGA​​ COIN​​ Website










ICO ​​start ​​date​: 1 Dec 2017 (00:00 CET)

ICO​​ end ​​date:​15 Dec 2017 (23:59 CET)

Hard​​ cap:​ $220,000,000

Soft​​ cap:​​ $1,000,000

Token:​ NGC, ERC-20 standard

ICO​​ price:​ 1 NGC = $1.00

Accepted​​ payment:​​ BTC, ETH, LTC, DSH, EUR, USD

Total​​ emission​: 400,000,000 NGC

Distribution ​​of ​​funds​:

  • 100% Legal & Advisory Tokens will be locked up for 6 months.
  • 50% of the team’s tokens will be locked up for 6 months.

Early investors receive a bonus of 30% during the pre-Sale. Also there is a referral program running during the ICO: «Whenever someone registers through your link and buys NGCs during the Pre- & Main-Sale, we pay you a bonus of 5% of the amount your friend invested».

Description of the services and scope of the project

NAGA will create its own full ecosystem based on the tokens issued in the ICO, using them as the main currency for settlements and services. The ecosystem being developed can be divided into 3 main directions which are at different stages of development and combine various services:

  • Trading business;
  • A marketplace for virtual goods;
  • Crypto wallet.

The trading business is built on the basis of SwipeStox and NAGA Markets Ltd.

NAGA Markets Ltd. Is registered in Cyprus; it is a licensed broker (regulated by CySEC, licensed by CIF, FCA), specializing in forex trading and CFD trading. There is a eponymous portal, where it is possible to open both real and demo accounts. In addition, client support is provided in terms of training and courses in cooperation with HBS AG (Hanseatic Brokerhouse German & Spain).

SwipeStox is a platform for social trading where trading in forex, stocks, Indices, ETFs and CFDs is supported. The social trading itself means that SwipeStox customers can copy successful traders in the market while paying a reward to them. At the same time, the platform is aimed at the younger generation and beginners in trading as much as possible - the format of derivative financial instruments and the Forex market allows this to be done. It is also achieved via a convenient implementation of the platform in a web portal and mobile application.

In addition to traditional auto-exploration for other traders, the service functionality also includes contracts for cryptocurrencies, stock chat, a system of ratings for traders and CYBO, an automated advisor that uses crowd intelligence to generate trading signals and implment automatic trading.

SwipeStox has been operating since July 2016 and currently has partnerships with 8 brokers, including the world's largest providers: FXCM and BDSWISS. Currently, SwipeStox is negotiating for cooperation with another major player in the market - Interactive Broker Inc., within which customers will have access to traditional financial instruments. In addition, SwipeStox services also provide brokerage services via integration with NAGA Markets ltd.

NAGA gives the following statistics on the popularity of the service:

In addition to social trading, the platform offers opportunities for business as well. Due to the attention of a large audience SwipeStox provides advertising space and a big data analytics.

Virtual​​ goods​​ marketplace

This direction is represented by the Switex platform, which is under development. As a result, the team hopes to create a platform for an independent, safe and legal exchange of virtual goods for gamers and developers. Products will be addressed both within the primary (from developers to gamers) and secondary (between gamers) markets. Thus, Switex is eventually going to become "the Amazon and eBay for in-game items".

Products placed within the framework of the platform will be provided with a system based on blockchain technologies which will eliminate risk of scams or fraud. This is all the available information about the technologies that are used to achieve claimed functionality.

Currently, the project is in alpha stage and, as NAGA states in the documentation, has secured the support of some initial game developers. An open beta is planned to be announced only in the 1st quarter of 2018. Full service functioning will begin in the 3rd quarter of 2018. The project already has a website (switex.io) but it is at the initial stage of development.

The "Switex Coins" will be used as the settlement currency in the marketplace; they can be obtained by exchange for NGC or other currencies. The team does not disclose Switex Coin parameters; it is unclear whether it will be an ERC20 token, another cryptocurrency or a centralized payment unit.

It is notable that the implementation of a blockchain-based game items marketplace and "placement" of goods in these blockchains is a complex case; there are various options for its implementation in the gaming industry. The problem is a need for the developer or the administrator of the game/server to participate, since the blockchain needs access to the game environment which means integration of its own code into the game engine. At the same time, many games are published by large software companies that either provide their own centralized marketplace or are indifferent to it. To understand the benefits and predict the popularity of the Switex marketplace the ultimate architecture of the platform needs to be understood.


Creation of a crypto wallet, taking into account the development of two marketplaces, is necessary for the functioning of a full-fledged NAGA ecosystem based on the NGC token. The NAGA wallet will be integrated with SwipeStox and Switex and all the other services being developed as well as planned ones. As part of the use of SwipeStox and Switex services, a user will also receive cashback in tokens for a special Bonus Wallet (inside the main wallet).

It will be possible to transfer NGC tokens to the platforms from the wallet and to bring them back. The wallet will support a wide range of cryptocurrencies, fiat, the possibility of input / output of funds, the possibility of issuing NAGA debit cards (virtual and plastic) and the ability to work as a payment gateway.

In general, the functionality of the NAGA wallet is standard; however, methods of storing funds and security methods are not specified; there is no understanding of the amount of commissions for transactions. The code is also not published. At the current moment, all we have is the Naga Wallet Design and a general description of architecture.

Naga Academy

Within the framework of the NAGA Academy project, the team is going to create a full-fledged educational platform where the programs will be offered in conjunction with a Cypriot educational institution. The service will be launched in the 1st quarter of 2018 and will offer online programs - trainings (webinars), web-based courses and offline programs - classes, workshops, seminars, etc. Programs will be conducted not only in the field of trading but also in crypto currencies, fintech technologies and virtual goods trading/economy.

Naga have developed their own multi-stage education system where the lowest levels (the Micro and Macro Degree) are designed to give the necessary level of knowledge for the possibility of studying on the undergraduate program. At the same time, the NAGA Academy will work in accordance with European standards of education, in connection with which its degrees will be recognized internationally.

The NAGA Academy will also operate in close alliance with SwipeStox and Switex, providing a capture of audience to the platform. The project description is not very detailed; in the documentation the team only gives a general idea and the possibilities.

Market guard

NAGA also expects to create a platform for providing quantitative and qualitative analysis on traditional financial and crypto markets. This service is developed in conjunction with Finery.

In the case of achieving the minimum goals for the ICO ($50 million), the following products will be provided to users in the framework of the web portal:

Exchange guard

  • Market statistics
  • Probability of default
  • Liquidity
  • Market manipulation
  • Arbitrage opportunities
  • Type of flow
  • Venue ranking

Token guard

  • Currency/Token statistics
  • Liquidity
  • Real supply/demand
  • Blockchain stability
  • Correlation with BTC/passive portfolio
  • Token ranking

Portfolio guard (direct integration into SwipeStox)

  • Investment profiling
  • Recommended portfolios
  • Gainers/Losers
  • Back-testing and statistics
  • Leaderboard

Other projects

In addition to the existing business in brokerage and social trading, NAGA is planning to develop two more projects in financial markets: A p2p platform for CFD and stock trading and an application for p2p operations for exchanging fiat and crypto currencies. NAGA gives a minimum of information on projects - only the main idea, noting that at this stage this is the maximum. The following picture of p2p trading is also shown:

P2P trading with derivative financial instruments and shares, where the second side of transactions is not a broker but a trader (similar to traditional exchanges) is a more advanced version of the current platform. The broker only performs the matching of orders and performs clearing settlements. The P2P currency exchange also repeats an exchange trading scheme with an expanded list of instruments, including crypto currencies. Similar solutions on the crypto market are LocalBitcoins, Qvolta, Bitsquare and so on.

In general, we see that NAGA is extensive in its own projects; this justifies the high hardcap. However, the depth of elaboration of planned projects is essentially limited; only general information is given. For example, detailed information regarding a wallet and virtual game marketplace is practically absent in the documentation; the most significant technical details and characteristics are also not disclosed. In the meantime, these are the most important platforms in the ecosystem being developed. As a result, there is no understanding of how exactly the team is going to spend a huge amount of $220 million of raised funds.

Market Review

Someone will say that fintech is just a buzzword which many start-ups use to attract investors' funds, and this is partially right. However, it is difficult to argue with the figures: investments in financial projects are constantly growing and their volume exceeded $22 billion in 2015 [https://newsroom.accenture.com/news/global-FinTech-investment-growth-continues-in-2016-drive n-by-europe-and-asia-accenture-study-finds.html]. These figures also correlate well with KPMG regular research "The Pulse of Fintech”.

The growth prospects for this market are estimated to be quite high; statista.com points to a CAGR of 20.5% in the period 2017-2021.

At the same time, fintech is a broad concept; many start-ups can be generalized by their goal - to compete with traditional financial institutions. The NAGA project is a vivid example of a European fintech start-up which has its own niche solutions for different businesses.

Online trading and Robo-Advisoring can be identified as the first area of interest for NAGA. With ubiquitous broadband internet access the popularity of mobile online shopping solutions is steadily growing. Auto-exploration and Robo-Advisoring are experiencing a second birth competing with traditional trust management and ETFs. In the coming years, there is an explosive growth in demand to be expected for the services of such advisors; an annual increase of AUM may reach more than 47% [https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp].

The second target segment for NAGA is the gaming industry and digital goods trade. Extensive and interesting research on this topic is published by newzoo.com. This industry remains steady in its growth and it is certainly promising6. NAGA published a series of graphs in the white paper which we consider to be successful in illustrating the industry's prospects:

The interests of NAGA are not limited to online trading and virtual goods. There is an educational project, a crypto wallet and a supplier of market data in the company's portfolio. The projects have not yet been developed and are not well described; therefore it is difficult to quantify the prospects for these market segments.

At the end of the market review section, it should be noted that the NAGA project is an interesting case of a fintech conglomerate. Given that business lines can develop, it is not clear which of them will bring a greater value to the company.


Since the project is actually led by the NAGA Group, the list of the formed team is quite large; mainly it includes key managers and founders of various projects and the NAGA Group itself. It is foolish to argue about the lack of professionalism and absence of the background in this case - the majority of the team are formerly of large banks and consulting firms, and the team also proved its effectiveness by the example of an existing successful business and an IPO on the exchange.

The team for the NAGA Group totals 120 people. The characteristics of the founders and the majority of top managers for the NAGA Coin project are given in the documentation and on the website with links to professional social media.

Yasin Sebastian Qureshi - Founder & Executive Director (LinkedIn)

Yasin Sebastian Qureshi is a banking and finance professional and has been in the business for a long time. He is the youngest person in Europe ever to have obtained a banking license, and subsequently founded and ran his own investment bank successfully going public in 2007. Yasin is an investor in technology start-ups and film, but also co-founded the Global Citizen Foundation. Before joining NAGA he was CEO of Varengold Bank AG for about 20 years. There is a lot of information about Yasin in the media; however, it is mainly related to the NAGA Group.

Christoph Brück - Founder & Executive Director (LinkedIn)

Declared many years of professional experience in jurisprudence, finance and international transactions. Based on the characteristics of the team in the documentation, Christoph was a partner of a well-known law firm in Hamburg before joining NAGA. However, the firm itself is not specified. He is also Chairman-Supervisory Board at Hanseatic Brokerhouse Securities AG since 2016.

Benjamin Bilski - Founder & Executive Director (LinkedIn)

Benjamin has proven experience in eCommerce and finance. At the age of 21 he co-founded angelplatz.de, one of Germany´s leading e-commerce shops for fishing equipment. During his entrepreneurial career he studied and graduated from EBS University as M.Sc. in Management.

Igor Kulatov - Co-Founder & CTO (LinkedIn)

Declared much experience in telecommunications, cryptocurrencies, SEO and web development fintech. Has extensive experience as a developer; before NAGA he worked as Senior Software Engineer at ThingLigix, Inc., 2Lemetry (Acquired by Amazon) and as a Product Manager for Russian Automated Intelligence Systems.

Wladimir Huber - Financial Director (LinkedIn)

Wladimir is a Co-Founder and Managing Director for SwipeStox. He has proven experience in business development and corporate finance, particularly trading and investing. Has also been a director at Hanseatic Brokerhouse Global Markets since 2017. Prior to NAGA, worked in various financial and consulting companies: started with internship at EY and Sopra Steria Consulting, held various positions in Berenberg Bank, IKOR Financials Gmbh, Varengold Bank AG.

Alexander Braune - Operational Director (LinkedIn)

Alexander is a Co-Founder and Managing Director for SwipeStox. He is a passionate and versatile operational manager / strategist with a track record in the financial services, consulting and m-commerce industries. He is the founder of Swipy GmbH (mobile fashion shopping app). Also has experience working as a consultant at Horvath & Partners Management Consultants and Deloitte.

Andreas Luecke - CFO, Head of Legal and Tax (LinkedIn)

Senior Corporate and Tax Lawyer with 25 years’ experience in M&A as well as the structuring of investments for private and institutional clients. Prior to his engagement at the NAGA Group he has been a partner in a big four firm (EY) as well as in a multidisciplinary tax and law boutique (T2C Steuerberatung).

The list of consultants and partners is worth noting separately:

  • Roger Ver (Blockchain Advisor) - Founder & CEO Bitcoin.com.
  • Mate Tokay (Blockchain Advisor) - COO Bitcoin.com.
  • Andrei Baibaratsky (Blockchain Advisor) - Blockchain Expert, CTO at Confideal.
  • Yagub Rahimov (Media Advisor) - CEO and Co-Founder of the 7marketz Inc. group of companies.
  • BYZANTIUM (Marketing Advisor) - Leading TOKEN SALE Consulting Agency founded by a team of professionals with backgrounds in blockchain technology, investing, PR, and marketing.
  • Lionel Iruke (Legal Advisor).
  • Stefan RiBe (PR Advisor) - Financial & Communication Expert.
  • Andreas Ruether (Strategy Advisor).
  • Stavros C. Fatta (Product Advisor) - Executive Director NAGA Markets and NAGA Academy.
  • Michael Milonas (Product Advisor) - Executive Director NAGA Markets and NAGA Academy.
  • Marshall Long (Cryptocurrency Specialists) - Cryptocurrency Specialist.
  • FINERY (Algo Advisor) - Blockchain Architects with proven track record in international robo advisory and artificial intelligence trading projects.

To sum it up, the team is undoubtedly a strong point of the project. Many consultants have been involved in addition to qualified and proven managers and founders - lawyers, economists, blockchain specialists. The team also uses the advice of Byzantium and Finery who have extensive experience in their fields.

Development strategy and roadmap

The NAGA project has a well-documented roadmap; the seventh chapter of the white paper is devoted to it. Schematically, it looks the following way:

It can be seen from the scheme that the fastest results can be expected in March 2018 - the launch of NAGA ACADEMY (we hope that "March 2017" is a misprint) and fully announced functionality of the platform will be operational by the end of the first half of 2019; there will be the launch of the NAGA Crypto Exchange.

For successful project development, the team identifies three main areas of work:

  • Technological development
  • Legal and licensing development
  • Community and business development

Technological development refers not only to the creation of a smart contract for NGC token but also creation of the necessary infrastructure for reporting, analysis, and integration with various counterparties.

Legal and licensing development will be jointly conducted by lawyers and the NAGA project management. Work in this direction will be focused on ensuring that the NAGA business meets the requirements of regulators, has all the necessary licenses and the approaches used in the work are completely transparent. In order for legal issues to receive full and timely support the team will use the services of reputable law firms in addition to their own staff.

The project will continue to aggressively expand the market for business development and community growth, finding new partners, creating a recognizable international brand. In addition to their own efforts, NAGA will cooperate with the largest marketing companies.

The team understands that development will much depend on the size of the funds raised. The minimum goal for fund-raising will be achieved if 50 million NGC are sold. This goal includes the following milestones:

Part of the NAGA MARKET GUARD service which will be responsible for access to market data and analytics is marked with (*), since its development depends on the funds collected. We may say only that if the maximum fee of 220 million NGC is executed, Market Guard will be one of the key services of the new universal NAGA Exchange.

Marketing strategy

The NAGA Coin project is conducting an active marketing campaign. An increasing growth can be observed, due to the fact that the announcement of the upcoming ICO occurred relatively recently. Apparently, the peak of marketing activity is ahead; nevertheless we will describe the current state of affairs.

The website contains links to the main public of the project:

All links above are operational and the number of subscribers is growing steadily. Some summary figures are given below:

  • Twitter – 294
  • Facebook – 4154
  • Telegram – 1815

The team uses a group on Telegram and a thread on Bitcointalk forum as their main channels of communication. It should be noted that both of these channels are poorly developed; users are only now increasing in number. Bitcointalk contains 12 pages and there are few questions about the project but the thread administrator regularly gives detailed answers.


There have already been a number of announcements for the upcoming Naga ICO  in the specialized press. The most interesting publications, in our opinion, are given below:


Publicly Listed NAGA Group Aims to Raise $220m in an ICO

The firm founded by Yasin Qureshi, Christoph Bruck and Benjamin Bilski continues with a new venture.

In the Wake of a Successful IPO on the Frankfurt Stock Exchange, The NAGA Group AG Announces Upcoming NAGA Coin (NGC) Token Sale

The NAGA Group AG is a German FinTech company listed on the Frankfurt Stock Exchange with over 150 employees. Today, they officially announced their Token Sale to launch the NAGA Coin (NGC) and create the first Blockchain-based ecosystem for decentralized trading, investing and education in financial markets, virtual goods and cryptocurrencies.

Fosun International: The NAGA Group IPO on the Deutsche Börse

Fosun International Limited (Fosun) is pleased to announce the successful initial public offering of The Naga Group AG ( NAGA) on the “Scale” market, the SME segment of the Deutsche Börse.

ITS Focus: Interview With Yasin Qureshi of NAGA Group

As part of our project focus series, we had a discourse with Mr. Yasin Qureshi who heads the NAGA project, and the following is the documented session...

Frankfurt Listed Fintech Company NAGA Group Launches Token Sale

The NAGA Group AG, a German FinTech company listed on the Frankfurt Stock Exchange (ISIN: DE000A161NR7), has just announced its Token Sale event.

German FinTech Company NAGA Group Wants to Set a New Standard for All Future ICOs

NAGA Group, one of the most successful listed ventures in the forex industry, launches the first Blockchain-based ecosystem for trading virtual goods and financial instruments with its own NAGA Coins, and aims to raise $220 million with its upcoming Token Sale.

New Blockchain VER-sion of FinTech

While Blockchain technology appears to be making inroads into everything from personal hygiene to death benefits, widespread adoption continues to be something of a slow process. Still and all, mainstream adoption has continued slowly.4

Wall Street Doesn't Love Cryptocurrency But It Likes Blockchain

Cryptocurrency is reducing the influence of governments over the global monetary landscape and it has shown an impressive ability to steal the attention of investors away from traditional investments on Wall Street.


FinTech company The NAGA Group AG aims to bring the advantages of financial technology to the masses through the first blockchain-based ecosystem for decentralized trading, investing, and education in financial markets, virtual goods, and cryptocurrencies.


It remains to add to the above one specific marketing method which is used by the NAGA team: they are publicizing their recent IPO on Deutsche Börse everywhere. Sometimes this is justified, sometimes redundant, but the advantage of this project in comparison with most ICOs is unconditional. A publicly traded company with reports, an audit, with the presence of extensive venture capital funds - is this not a dream?

In the venture industry if a startup goes to an IPO, this is a victory; it means that a venture investor can withdraw from the project. In NAGA’s case this happened, so we can pose a question: "If this happened with the IPO, why do you need the ICO?" But this is a rhetorical question for now.

In any case, the NAGA project has some unique features and differences from the "classic" ICO with one idea under its belt. It will be interesting to monitor their placement; perhaps it will become a precedent for the whole industry.

Competitors and competitive advantages of the project

Before considering specific areas of business and the competitors in these fields, it is worth noting one thing. Project Naga is an already-functioning business whose shares are traded on the Frankfurt Stock Exchange. Reporting, registration data and other information disclosure are provided in the framework for regulation of the stock market and financial reporting requirements. Anyone can go to the NAGA Group AG website and find official reports, and analyze the business in which they are going to invest. Someone might say that this is tedious and the ICO projects are distinguished by a different approach to investments than with classical fiat assets; that all take high risks and rely on their own intuition. It is hard to argue with this thesis but it is also hard to argue with the fact that a real public business is a rarity on the ICO and its publicity gives certain advantages.

Here are a few advantages that lie on the surface:

  • Regular financial statements in accordance with the IFRS
  • Information on the management and composition of the board of directors was opened
  • Mandatory disclosure of information in accordance with the requirements of the regulator
  • Real time publications of stock prices

If we move on to the specifics of the project itself, the Naga Group is positioned as a conglomerate of the most promising lines of activity among blockchain projects. Financial markets, virtual assets and cryptocurrencies have united here. It is also difficult to find competitors for conglomerates in the crypto market; this approach is not often met. Analysis is made difficult by the fact that the component products are in different stages of development. In a sense, the Naga project can also be viewed as a venture fund that manages several projects.

Here we should return to the components of the project:

  • SwipeStox - platform for social trading (the platform has several prestigious fintech awards, including the winner of Finnovate-Europe 2016)
  • NAGA Markets Ltd. - provision of brokerage services (Forex, CFD).
  • Switex - a marketplace for virtual game products
  • NAGA Wallet - multifunctional multicurrency wallet
  • NAGA Academy - educational platform in the field of finance
  • Market Guard – a service providing aggregated market data and analytics
  • P2P solutions for trading and the foreign exchange market.

A pretty good analysis with competitors for SwipeStox and Switex is presented in the project documentation. For example, SwipeStox as a platform for social finance is compared with Forex brokers, Social Trading and Equity Brokers. A comparison table is given below:

The table is designed to show the advantages of the SwipeStox product compared to other types of brokerage. We agree that the platform is promising as a platform or social network for traders. However, from our point of view, it is not correct to compare a social trading project with classic brokerage of shares.

The founders conducted a similar analysis for the Switex project, highlighting the most significant players in their opinion in the market for trade in virtual goods and in-game content:

Of course, such a player as Steam cannot be ignored and it is good that the team did not forget to mention the largest gaming marketplace in its review. The only thing that everyone should understand is that Steam does not yet perceive in-game item trade as a fully-fledged business direction. If the current situation changes, Steam has the highest chance of taking market share.

It is also necessary to add that Enjin is not the only decentralized project in its field. Recently, names such as DMarket and GameFlip have become known, which also aim to decentralize their businesses for in-game item trade.

Other business lines of Naga’s such as its cryptocurrency wallet and academy also have competitors in their field but we will not dwell on this in detail in this review, since they are not as well described as SwipeStox and Switex, and their development is still far from complete.

Economy of the project

Economically, the project is described quite well, especially if we take into account its scale. The programs for stimulating the use of NGC tokens are well defined and there are many programs for each of the main platforms. A lot of quantitative documentation and various calculations are presented, showing good prospects for the overall project but this is more the calculation of the investment potential of the token and the financial plan.

Since NAGA is developing several large projects at once, the economy is specific for each of them. For the existing business in the financial markets everything is generally understandable and similar to most competitors. The platform charges commissions for each trade, as well as for copying transactions, auto-investigation, etc.; the customer pays for swaps, and may suffer a loss in favor of the broker. Ultimately, NAGA's revenue per one trade for SwipeStox is about 3.5 euros in 2017.

The following flow chart is shown for the Switex platform:

The scheme provides reward for both developers and NAGA. The amount of commission from each operation will be about 10%. It is not specified what share developers will receive. Another way to reward developers/publishers is item listing on the platform. A developer will take all earned profit from the sale of items in the market, minus a small part for a platform fee.

There is no information on the economies of other projects: a wallet, Market Guard, or the NAGA Academy. We believe that commissions in the wallet are unlikely to be significantly higher than market ones. According to Market Guard and NAGA Academy, it is difficult to forecast commissions; both projects have a large social focus creating advertising for basic services.

NAGA offers the following economic bonuses for customers using NGC:

For SwipeStox users:

  • NGC users will pay 50% of commissions for each trade on SwipeStox.
  • When working on the platform, cashback to NAGA Bonus Wallet will be credited from each transaction (inside the main wallet). This applies to trading, auto-exploration and CYBO. The average size of the cashback will be 0.01% - 0.05% of the invested amount for the trade.
  • When using NGC account service, NAGA will remunerate users to a double size according to a specific formula (a detailed description with an example can be seen in the white paper.)

For Switex users:

  • Reduction of commissions by 1% when using an NGC account.
  • Cashback crediting: since special Switex Coins will be used on the platform, a 5% cashback will be credited when exchanging NGC for these coins with a higher exchange rate compared to other currencies.

In addition, there will be bonuses for advertisers who want to buy advertising space on SwipeStox and Switex platforms when paying for services in NGC tokens:

Token owners will also have access to additional bonus content on Switex, as well as in the frame of online courses and programs of NAGA Academy.

By deducting a small portion of commissions (from trading and exchanging NGC to Switex Coins), NAGA is going to create two separate funds: The NAGA Coin Loyality Fund and NAGA Donation Fund. The first is intended to accumulate funds for payment in proportion to all holders of NGC. Funds from the Donation Fund will go to the development of promising projects selected by the community of tokenholders via the website.


As has been repeatedly stated before, the NAGA Coin project has a number of specific features that distinguish it from the overwhelming number of other ICOs. NAGA Group AG is a public company whose shares are traded on an organized exchange. This company has already been subject to a number of regulatory restrictions in the context of obligations and information disclosure which remove a number of natural questions about the start-up. This is a positive moment in terms of risk which should be appreciated.

But despite the "maturity" of the project in terms of business development, NAGA has a number of risk factors that affect the investment attractiveness and prospects for the token in general.

We believe that the NAGA project should be viewed as a conglomerate of projects that are quite different in their ideas. Although the team is trying to incorporate everything into a single ecosystem it is not at all a given that this will work. Due to  the fact that NAGA projects are at different stages of development it is completely unclear whether a synergistic effect for the future utility value of NGC tokens can take place. In this case, it is obvious that 2 + 2 can be more or less than 4.

In this uncertainty of the prospects for individual NAGA projects, we see the main risk for investment in the project. If there was a separate tokenization of SwipeStox, Switex and other directions, the analysis would be easier.

Nevertheless, the NAGA project is fairly unique in the current state of the industry, and it is impossible to underestimate its investment attractiveness.

Token investment attractiveness

The NAGA Coin project should be viewed in two dimensions, in terms of the investment attractiveness of the business and the token as an infrastructural unit. Firstly, it is already a working business in financial markets, where the SwipeStox platform together with NAGA Markets Ltd allow NAGA to be considered a fully-fledged company. Financing of these projects was received both via direct investments, and from the IPO on the exchange. Due to the requirements of European legislation for information disclosure by issuers, as well as on the basis of the information provided by NAGA in the documentation, it is quite possible to consider the indicators of the working business and evaluate it.

However, the ICO evaluation is an assessment of the project that will be financed from the revenue from the crowdsale. Therefore, in assigning a rating to the project it is necessary to operate with the presented information on services that are in the process of development, and compare it with the characteristics of the ICO. Here lies the main weakness of the NAGA project: there are a lot of developing services and solutions within the framework of the project; each of them is large in scope but the description and elaboration of each project is tightly compressed; the information is insufficient - not to mention the hard cap of $220 million.

Thus there are no questions about the running business (this is already financed) but there are a lot of questions on the ideas that require an ICO to implement. For example, Switex is described simply as a concept in a dozen pages and has only a landing website, while similar competitive start-ups use their entire white paper to work out and explain the architecture, the business model or working with all interested parties (developers, gamers, third parties). The same applies to the Market Academy, which is a project for an entire online educational institution offering the possibility of recognized degrees.

Still, the token issued at the ICO will participate in the transactions of the working business in financial markets; this is facilitated by the incentive program described in section 9 ("Project economy"). Thus the fundamental long-term potential of the token, despite the weak points of the project, is also quite strong.

On the website the team presents predicted token values for the next 5 years, based on planned operational indicators; sources of the calculations are also attached. According to them, we see that the price is determined based on the demand from consumers for Switex and SwipeStox. At the same time, the main share of token demand is generated by SwipeStox, a working business. At the end of 2018, when the marketplace for game products will already be launched according to the roadmap, its share in demand will be 20% and will increase to 30% by 2022. Thus, we see the invalidity of the declared investment but at the same time a significant potential with moderate risks due to the functioning and efficiency of the existing business.

From the point of view of speculative potential given the uncertain general market forecasts and taking into account the lack of increased interest of the crowd towards the ICO, the token looks less attractive. Nevertheless, the main advantages of the project which are its business background and team remain the only truly significant trigger for increase in the token price.

To summarize all above, we positively assess the prospects of the NAGA Coin project and see the long-term potential of the NGC token with more restrained forecasts for speculative growth in its price. Despite the gaps in the description of the developed services and platforms, the project has strong points such as its indicators of a functioning business in the financial markets. At the same time, the team will find it difficult to collect the planned hard cap due to undeveloped plans and a non-aggressive marketing policy.

The information contained in the document is for informational purposes only. ICORating received monetary compensation in the amount of $10730 from the entity rated in this report for completing the ratings report. However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published. The views expressed in this document are solely those of the ICORating Team, based on data obtained 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.