Altcoin Report - July 2020

Note: this report is accurate as of its publication but some details will change over time. Please check the posted date above.

So far, I have posted altcoin recommendations at the end of each month. This month’s recommendation can’t wait. You need to know about it before its staking event begins within the next few weeks (possibly sooner). Besides, I am so excited about this project I’m not sure I can wait any longer.

Decentralized exchanges offer many advantages over traditional crypto exchanges. They do not require KYC, meaning you don’t have to reveal any personal information that can get stolen. Also, you retain custody of your crypto—you never lose access to your funds or data. And, you usually have no withdrawal fees, only the cost of a normal transaction on the blockchain of your choice.

While that’s all well and good, DEXs suffer from several problems.

First, they’re complicated to use. You have to connect a private wallet to a DEX interface, transfer funds into a smart contract, and post gas fees before you can trade. After your trade closes, you have to reverse the process to move crypto back into your private wallet.

Second, they suffer from poor liquidity. In other words, you often don’t have enough buyers and sellers to settle deals quickly at the prices both sides want.

Third, thanks to the transparency of the blockchain, anyone plugged into the blockchain can monitor incoming bid orders, sell orders, and cancellations. Savvy traders can use this information to manipulate the market or gain unfair trading advantages.

Fourth, DEXs can’t support lots of different currencies. Cross-chain settlement entails a lot of complexity, coordination, and risk. On top of that, it’s slow.

Fortunately, DEX technology has come a long way. Many new platforms have started to tackle these problems, moving the DEX space leaps forward from where it was even just a year ago. Usage has tripled from 0.2% to 0.6% of overall crypto trading volume. Check out this chart:

Despite this boom in activity, DEXs remain absolutely tiny.

That’s why I love this month’s recommendation. It could develop into the best DEX yet—and you can buy its token for a penny, with massive rewards for early stakers.

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