An Arturo Capital Analysis on:

A Multi-Chain, Regulatory Compliant DEX

Written by Derick Fiebiger

 DISCLAIMER

This article provides NO INVESTMENT ADVICE. The Content of

the article is for informational purposes only: you should not
construe any such information or other material as legal, tax,
investment, financial, or other advice. Nothing contained in this
article constitutes a recommendation and/or endorsement to buy
or sell any securities or other financial instruments in Arturo
Capital or any other blockchain firm. None of the authors, in any
way whatsoever, can be responsible for your use of the
information and methodologies contained in this paper. The
authors assume no responsibility or liability for any errors or
omissions. All information contained in this article is provided "as
is", with no guarantees of completeness, accuracy, or of the
results obtained from the use of this information.


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 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 4

2. CRYPTO EXCHANGES: WHAT LIES AHEAD 7

2.1 THE DEX; A REGULATORY “HACK”? 8

2.2 THE NASH APPROACH 10

3. THE DEX ADOPTION PROBLEM 12

4. THE TEAM 14

5. THE “LEGAL” SECURITY TOKEN: NEX 16

5.1 DIVIDEND BREAKDOWN 18

5.2 NEX TOKEN PRICE FORECAST 19

6. THE BEAR CASE 21

7. IN CONCLUSION… 22

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1076 × 324

Exchange
An Arturo Capital Analysis

This is a report on the Nash Exchange and its fully-compliant, registered crypto security token, NEX.

1. EXECUTIVE SUMMARY
Arturo Capital believes that the crypto exchange market is ripe for disruption. We believe a new

exchange platform will soon capture significant market share from its existing incumbents, in a similar

fashion to Binance’s market share capture in 2017 (where they siphoned a significant user base from

Bittrex and Poloniex). Anyone can dispute such a thesis, but two key points are widely accepted within

the cryptocurrency exchange space:

1) Trade volumes are growing, exponentially.

For crypto investors, accurate trade volumes have been a headache to measure. This is mostly a

result of unreliable reported volumes from unregulated crypto exchanges. Fortunately,

[Link], a website by Bitwise Asset Management, provides an estimation of

“authentic” trade volume data among top crypto exchanges, placing the total 24-hour spot volume

for Bitcoin trading at just under $1B/day (as of 8/3/2019).

Image: [Link]

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Compliant exchanges such as Coinbase have seen over 300% growth in Bitcoin volume in less than

4 years despite enduring two major bear markets over this timespan. Unregulated crypto-to-crypto

exchanges that dominate the altcoin market, such as Binance, have experienced even more drastic

volume growth, seeing over 3,000% total volume growth in less than 2 years (see images below).

Image: [Link]

Image: [Link]

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 2) A new exchange emerges to the top of crypto every 1-2 years.

While exchanges like Coinbase and Bitfinex have consistently maintained relevance since 2013,

this isn’t the case for all of the top exchanges. Over the years we’ve seen several fade in-and-out

of market dominance. Mt. Gox, BTC-e, Cryptsy, Poloniex, and Bittrex are a few that wore the

crypto-to-crypto “crown” before Binance. All of these previous crown holders were dethroned

due to lackluster user experience, poor security, regulatory clampdown, or some combination of

each.

Binance, today’s largest crypto exchange, burst on the scene in 2017 and hasn’t looked back.

Today, they’re the top exchange by volume in the world. However, during the June 2019, Binance

announced it will soon ban US traders from their main platform due to clamp down from US

regulators.1 Since the US market currently accounts for 30-40% of Binance’s revenue,2 one might

speculate this opens the door for history to repeat itself, allowing a new exchange to scoop up

Binance’s newly discarded US traders.


These two key points tell a story: the retail exchange space is thriving, and getting a slice of the

pie (market share) could be wide open for the taking. Thousands of crypto exchanges are currently

operating, so the competition is thicker than ever; but there is a shortage of US compliant, highly-

innovative exchanges offering something different. Arturo Capital believes Nash Exchange could be

offering something different. After conducting a thorough analysis of Nash’s products and regulatory

progress, we’ve observed a calculated and ambitious approach to innovating the entire crypto exchange

space from the ground-up via blockchain, self-custody, and a security token. The following document

inspects and how they are doing this.

1 Binance To Ban US Customers: [Link]

2 US Market on Crypto Exchanges: [Link]

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2. CRYPTO EXCHANGES: WHAT LIES AHEAD

Before diving into Nash, it’s important to understand the regulatory climate for crypto and how this

affects crypto exchanges like Nash. While guidance is still “foggy” at best, the advent of massive

projects like Libra (Facebook) 3 has regulators clamping down on cryptocurrency projects and ramping

up compliance oversight. 4

As previously mentioned, Binance will be restricting US traders on its platform starting September

2019, and many suspect it’s related to regulatory pressures. Exchanges such as Huobi and Bitfinex have

already restricted US trading, while many more centralized exchanges are expected to follow suit. These

top exchanges have all trimmed a large portion of their customer base (US traders) to avoid legal

hardship from US agencies like CFTC, SEC, FINRA, and NYAG.

US agencies are focused on ensuring thorough KYC/AML compliance and/or obtaining the proper

licenses (such as custody and money transmission). It’s readily apparent that crypto companies have two

choices: (1) comply with regulators, or (2) avoid the US entirely. Some exchanges like Coinbase and

Gemini have taken a more conservative route: moving slow on new features, listing only a select number

of cryptocurrencies, and ensuring compliance before moving forward with any business decision.

Ultimately, this conservative approach is required for survival, but it can be cumbersome for companies

seeking to innovate quickly.

3 Facebook Libra Announces Launch: [Link]

4 Regulator Scrutiny on Libra: [Link]

[Link]

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 2.1 THE DEX; A REGULATORY “HACK”?

“In general across the globe, most securities regulations are related to reducing risks. The major risks for trading

platforms are the risk of market fairness and funds mismanagement. How will custodial platforms prove no one

else has control of the keys or act on behalf of users? That is simply impossible. They need to implement several

audit and operational control mechanisms. I would also expect regulators to require strong insurances from those

players - bringing their operational costs even higher. The matching fairness is even worse, how do they provide

proof that they have not acted maliciously on behalf of users when they control all the information needed to

impersonate users?”

Fabio Canesin (Nash Co-Founder) on the advantages of Self-Custody5

What is a DEX? A DEX is an acronym for “decentralized exchange.” DEXs are often used to

describe non-custodial or self-custodial exchanges, even though there is a central point of authority

gatekeeping access onto the platform. In this document, DEX is used synonymously to describe non-

custodial exchanges, despite acknowledging the fact that one can make an argument these are not true

DEXs. While not truly decentralized, self-custody as a feature is a massive benefit to both traders and the

platforms enabling this feature.

Non-custodial DEXs like Nash’s present a lot of legal advantages over centralized exchanges, since

they’re extracting out liabilities from their platform. The SEC and FINRA released a joint statement on

DEX’s that do not keep custody of traders’ assets (also known as self-custodial or non-custodial), stating

that they are not subject to the same level of regulatory scrutiny as centralized exchanges (where custody

is taken on by trusted third parties):

Image: SEC/FINRA statement on DEXs [Link]

5Fabio on Self-Custody: [Link]

platforms-over-the-past-year-with-overstock-being-the-first-to-launch-tzero/7252/6?

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 The United States government vies to provide investor protections for its citizens, so they place

extra scrutiny on exchanges to ensure strong custody solutions (customer funds are safely stored).

However, an exchange that does not keep custody of assets is alleviated by this scrutiny, and is given

preferential treatment by US regulators.

On Nash, customers keep custody of their assets while utilizing the Nash exchange; assuming

they’ve passed proper KYC/AML checks before gaining access onto the exchange. In other words, Nash

is removing custody from the equation on their platform and this presents a lot of regulatory upsides.

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 2.2 THE NASH APPROACH

“The general outcome is that out of the gate we comply with almost all items in securities trading

requirements across the globe, missing items are related to AML/CFT controls. Those we will put in the

market on August 23rd, 2019 and continue to improve in the following months, I expect that most

regulators will like to see our operating history for a few months on these points before they allow us to

enter the larger market of securities trading, platforms that skipped KYC or allowed users infringing basic

identity checks will hardly ever be considered for those licenses.”

Fabio Canesin on Nash as a Securities Exchange6

Given the fast-changing regulatory

climate in the crypto space, the crypto

exchange market is increasingly challenging to

succeed in. If a new exchange were to become

relevant and overtake the top competition, it

would A) need to be thoroughly compliant and

responsive to major global regulators, while

also B) offering a highly sought after UI/UX

features unavailable on competing exchanges.

Nash appears to be aware of this and built out

its core infrastructure with this in mind.

According to Nash’s 2019 Quarterly Reports and other various information resources, they have

obtained money transmission licenses in at least 14 states (as of August 1, 2019) 7 , enabling them to

provide fiat onramps in those states at launch on August 23. Nash’s ambitious objective of disrupting the

finance industry will require an effective legal team to obtain the proper licenses and abide by all

relevant regulations. The team has also reportedly obtained approval to allow investor access to NEX

dividend distribution in Europe, the United States, and Canada (among others).8

6 Fabio on Tokenized Securities Exchanges: [Link]

security-token-platforms-over-the-past-year-with-overstock-being-the-first-to-launch-tzero/7252/6?

7 Nash Team Confirms US Support for 14 US States: [Link]

8 Nash Team Confirms US Traders Allowed to Trade: [Link]

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 Nash has achieved a major legal victory for not just a new cryptocurrency exchange, but any

cryptocurrency exchange by providing US investor access to dividends via their crypto security token,

NEX, and the ability to

provide direct fiat on-ramps

in almost half of the country.

Nash has taken an intelligent

approach with the rollout of

their MVP, in that they have

kept it very low profile while making significant strides on DEX technology and legal.

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3. THE DEX ADOPTION PROBLEM

Most DEXs today experience extremely low trade volumes and not a single one has garnered much

adoption relative to its centralized exchange counterparts. 9

There are a couple of reasons for this:

Reason 1: Poor User Experience

“Sign transaction? WTF? How the hell do I use this thing?”

The human attention span is short. According to the Nielsen Norman Group, viewers typically

leave a website within 10 to 20 seconds if their interest is not captured. It’s reasonable to assume this

standard also applies to crypto exchange websites. Today’s DEXs have limited order types (meaning, not

a lot of tools for experienced traders), confusing wallet integration to utilize their self-custody, and most

importantly, APIs are a pain to effectively plug into which turns away most algorithmic traders (major

liquidity providers for exchanges). Ultimately, today’s DEXs do not hold a candle to the seamless trading

experience users are accustomed to on central exchanges, and, understandably, no DEX has reached

comparable liquidity levels.

Reason 2: Limited Assets To Trade

“If I can’t trade BTC on your exchange, I don’t want to use it”

An exchange like Binance has high volume not just because of great UI/UX, but because a user

can trade virtually any crypto for any other crypto with very minimal slippage. What is slippage?

Investopedia defines slippage as, “the difference between the expected price of a trade and the price at

which the trade is executed”. Slippage often happens when an exchange doesn’t have much liquidity.

Today’s DEXs struggle with liquidity and slippage, mainly because they aren’t a “one-stop shop” where

traders can trade exclusively on their platform. Meaning, almost all DEXs are confined to a narrow list of

9 DEX Trading Volume Hits Low in 2019 [Link]

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crypto assets they can offer traders — such as IDEX and Etherdelta which are Ethereum exclusive (only

ETH/ERC20 pairs), or Switcheo (only NEO/NEP5 pairs + ETH/ERC20 pairs) which are Ethereum and NEO

exclusive.

As previously stated, UI/UX is a big reason for poor DEX liquidity, but another major contributor is

the lack of Bitcoin integration & Bitcoin trading pairs. BTC is the most liquid and preferred crypto asset

to hold/trade — and is also unquestionably the most preferred trade pair. Forcing users into another

trade pair, such as ETH, will turn away many traders as it forces them into a potential ETH position for

pending orders (a position that many see as far more volatile than Bitcoin). DEXs do not offer cross-chain

trading (eg, BTC to LTC) not because they don’t see the value, but because of the technological barriers

holding back this feature.

Nash appears to be solving most of the common hurdles holding back DEX’s from high-popularity

in the crypto space. The Nash DEX utilizes state channels to settle all trades, and this is reportedly what

enables them to have a user experience indistinguishable from centralized exchange platforms. More

importantly, the Nash DEX will be the first non-custodial exchange to offer true multi-chain support,

eliminating the problem of limited tradable assets. It’s worth noting that some existing DEXs, such as

Binance DEX or Switcheo, utilize “token wrapping” — meaning, Bitcoin is deposited into Binance and

you are given a 1:1 Binance Chain pegged Bitcoin. However, the Nash team argues token wrapping is

not truly “bitcoin support”, as this is a pegged asset, and the trader has to trust the peg as authentic. On

Nash’s platform, no assets will be pegged, they will be the assets you hold in your wallet today. The

Nash team has announced Ethereum and NEO functionality at launch (8/23/2019), and soon after that

will have support for Bitcoin, Litecoin and other cryptocurrencies later this year (Q3/Q4 of 2019).

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4. THE TEAM

Above all else, the team behind Nash has a

provable track record of deploying quality crypto

software. The founding team emanates from City of Zion

— an open-source NEO developer community with a

sterling reputation of shipping great, secure crypto

products. We explored their Nash extension tool (which

can be integrated on Brave browser and Google

Chrome), as well their Neon wallet — the most popular

crypto wallet for the NEO blockchain. Overall, the

interfaces and ease-of-use significantly exceeded our

expectations.

While the team keeps a fairly low-profile, Nash

employs over 25 people and growing. 10 Two of their

most vocal leaders, Ethan Fast and Fabio Canesin, are

briefly described below per LinkedIn:

Ethan Fast: “Ethan is an entrepreneur and research scientist with a background in HCI, AI, and

blockchain. He has led more than 10 projects to publication in top venues such as CHI, UIST, EMNLP,

and AAAI, where they have won multiple awards.

He first became interested in blockchain

technology in 2014, and later turned that interest

to Antshares as a co-founding member of CoZ.

Previously, he founded a Y Combinator funded

startup, Proxino, before returning to Stanford to

complete his PhD.” 11

10 Fabio Comments on Team Growth in Q2 Report: [Link]

11 Ethan Fast Linkedin: [Link]

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Fabio Canesin: “Nash Co-Founder and act as foundation chair in City of Zion. Nash is a next-generation

trading platform built on blockchain technology

and City of Zion the biggest and strongest

Blockchain development group in the world. Not

long ago was doing HPC and O&G research for

Schlumberger.”12

Not many exchange development teams have had this much provable technical and legal

progress at such an early phase in their project. Apart from being highly productive with regulators,

they’ve also redefined the DEX ecosystem by offering an industry-first non-custodial cross-chain trading

of assets (eg, BTC to ERC20).

Many blockchain companies, such as TRON Foundation, focus on unrelenting hype to build

notoriety.13 The Nash team appears to be doing the opposite of spreading hype. They’ve quietly

achieved regulatory progress, developed and deployed quality blockchain-based technology, all the

while preferring a lack of hype to organically grow their community, as indicated by Fabio in his

Blockchain Brad interview. 14

12 Fabio Canesin Linkedin: [Link]

13Marketing Gets TRON Founder Justin Sun in Trouble [Link]

lunch/

14 Fabio Comments on Keeping FOMO To A Minimum on Blockchain Brad [Link]

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5. THE “LEGAL” SECURITY TOKEN: NEX

Nash’s most eye-catching feature for traders and investors is their security token, NEX. As

previously mentioned, in the Q1 Quarterly Report the Nash team acknowledged that NEX staking (the

dividend issuing smart contract) will be available to US traders. NEX staking will be available to all

traders (after KYC completion) starting 8/23/2019 15 — making it one of the first dividend issuing security

tokens ever accessible to the US general public. Perhaps the more enticing feature of the token is what

type of rights holding the token will provide. The NEX token will offer up to 75% of all revenue

generated from Nash exchange fees. 25 million NEX out of a total of 50 million NEX were sold in their

crowdsale for $1 per token. The remaining 25 million NEX belongs to the team.

15Fabio Clarifies Staking Available At Launch (8/23) [Link]

7177/63

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 Exchange tokens are some of the most popular and best performing crypto assets over the past

1-2 years.16 The most notable exchange tokens today are BNB (Binance), HT (Huobi), KCS (Kucoin), and

LEO (Bitfinex). None of them offer a tradable token on United States exchanges, many speculate them to

be unregistered securities, and all of the aforementioned exchanges are banning US traders (or will soon

be within the year). It's worth mentioning, once again, that US traders account for roughly 30% of trading

volume on exchanges like Binance, so these traders will prefer to go somewhere as they are geofenced

out of their current platforms.

16Exchange Tokens Dominating 2019: [Link]

ieo-fever/

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 5.1 DIVIDEND BREAKDOWN

The major cryptocurrency exchanges generate significant daily volume. Nash won’t see overnight

success, but it's still worth inspecting several hypothetical scenarios in the event they are successful and

how NEX token holders would be impacted.

A user can stake between 1 month to 24 months. NEX staking dividends issue 25% (for 1 month

staked) up to a return of 75% (for 2 years staked) of trading fees generated. When a user stakes their

NEX, it is illiquid for the selected time. These fees are based on the assumption that all 50 million NEX

are staked, so your NEX stake acts as a percentage of that 50 million NEX. The below chart analyzes

different monthly volumes, the comparable exchange associated with each volume rate, and the

expected dividend based on 1,000 NEX (which currently trades at roughly $3 per NEX).

E X P E C T E D D I V I D E N D PAY O U T
Volume Equivalent as of 8-7-2019 Monthly NEX Dividend
NEX Stake Total Monthly Volume Dividend Rate for 2 Years Staked
(Competing Exchange) (for 1000 NEX Staked)

1,000 NEX $6 Million Switcheo 75% of Nash Revenue $1/Mo

1,000 NEX $40 Million IDEX 75% of Nash Revenue $1/Mo

1,000 NEX $70 Million Ethfinex 75% of Nash Revenue $2/Mo

1,000 NEX $800 Million Poloniex 75% of Nash Revenue $23/Mo

1,000 NEX $1.4 Billion Bittrex 75% of Nash Revenue $39/Mo

1,000 NEX $6 Billion Kraken 75% of Nash Revenue $174/Mo

1,000 NEX $8 Billion Bitfinex 75% of Nash Revenue $229/Mo

1,000 NEX $11 Billion Coinbase 75% of Nash Revenue $328/Mo

1,000 NEX $15 Billion Kucoin 75% of Nash Revenue $431/Mo

1,000 NEX $34 Billion Huobi 75% of Nash Revenue $971/Mo

1,000 NEX $42 Billion Binance 75% of Nash Revenue $1,213/Mo

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 5.2 NEX TOKEN PRICE FORECAST
The nice part about analyzing a security token in crypto is a lot of conventional investment

formulas can be applied to value its suggested token price; as opposed to utility tokens which are far

more of a crapshoot. We apply a Dividend Discount Model to give a very rough estimate of what price

the NEX token should be trading at.

What is the Dividend Discount Model (DDM)? Investopedia defines DDM as “a quantitative

method used for predicting the price of a company's stock based on the theory that its present-day price

is worth the sum of all of its future dividend payments when discounted back to their present value.” Put

simply, it takes the total annual dividend, applies a few assumptions, and spits out a suggested share

price — or in this case, token price. In below table we took a popular DDM variant, referred to as the

Gordon Growth Model (GGM), which takes the: The expected total annual dividend paid out for each

NEX token (D1), desired annual rate of return on investment (r), the expected growth rate per year in

total annual dividend pay out (g), and this calculates the suggested NEX Token price derived from the

present value of all of its future dividends.

Calculating growth (g) and rate of return (r) is very challenging for a start up in a new space such as

crypto. There isn’t much historical data to reference for crypto companies, nor is the potential growth

rate in traditional markets very comparable. Crypto is a very disruptive space, so it’s most likely going to

continue on its path of historical growth. However, for these models we wanted to apply traditional rates

to arrive at some conservative “fair value” price forecasts for the NEX token. We used a 15% rate of

return (r) and an 8% expected dividend growth rate (g) to calculate the fair price for NEX — both

conservative rates all things considered.17

The results indicated that NEX is currently overpriced at its current spot price of $3 (as of

8/08/2019), since Nash would need to generate daily volume on par with Poloniex before justifying a $3

spot price. However, the upside for NEX is dramatic: if Nash can generate daily volume above $20m per

day (within the top 80 exchanges according to CoinMarketCap’s Adjusted Exchange Volume chart), NEX

at $3 is fair value. Looking through the most bullish lens, if Nash can capture just 25% of Binance’s

current daily volume, that would place the DDM fair value of NEX at over $30 per token — a crisp 10x

from current trading price. See the tables on the following page for further information.

17 Gordon Growth M Values Explained: [Link]

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 NEX TOKEN PRICE (BASED ON ! )
Annual Dividend Per
Volume Equivalent as of Suggested NEX Token
Annual Revenue Token
Total Monthly Volume 8-7-2019 Price
(With Average Fee of .19%) (Based on 2 Year
(Competing Exchange) (using DDM Formula)
Staking Rate)

$6,000,000 Switcheo $136,800 $0.0021 $0.03

$40,000,000 IDEX $912,000 $0.0137 $0.20

$70,000,000 Ethfinex $1,596,000 $0.0239 $0.34

$800,000,000 Poloniex $18,240,000 $0.2736 $3.91

$1,400,000,000 Bittrex $31,920,000 $0.4788 $6.84

$6,000,000,000 Kraken $136,800,000 $2.0520 $29.31

$8,000,000,000 Bitfinex $182,400,000 $2.7360 $39.09

$11,000,000,000 Coinbase $250,800,000 $3.7620 $53.74

$15,000,000,000 Kucoin $342,000,000 $5.1300 $73.29

$34,000,000,000 Huobi $775,200,000 $11.6280 $166.11

$42,000,000,000 Binance $957,600,000 $14.3640 $205.20

“DDM” EXPLAINER !
DDM
Definition Chosen Values
Assumptions

The expected total annual dividend paid out for each NEX
Depends on Total Monthly Volume
D1 token. Calculated by combining Total Monthly Volume forecast,
achieved (multiplied by 12 months).
.19% average fee, and a 2 Year Staking Rate (75% of revenue).

Desired annual rate of return on investment. This is

r 15%
conventionally around 10-15%.

The expected growth rate per year of total annual dividend pay
g out. Usually you reference past years, but we chose 8% growth 8%
as a conservative estimate.

Suggested NEX Token price derived from the present value of Calculated after unique D1 inputs are
P all of its future dividends applied.

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6. THE BEAR CASE

Nothing in life is a sure thing. The Nash DEX has made a lot of progress, but this doesn't come

without downside risk. The exchange space is increasingly more diluted with hundreds to thousands of

competing exchanges.18 Additionally, the major exchanges such as Coinbase and Binance are

simultaneously innovating to try to keep their position as the top moneymakers.19 There are several

situations in which Nash could be impeded or completely shut down:

๏ Facebook’s Libra has triggered enormous regulatory scrutiny on cryptocurrencies, and it's

entirely possible that new laws or regulations could derail future progress — or even worse,

abolishing Nash’s previous progress already made on the legal front.

๏ It's also possible that an unforeseen technical issue delays or inhibits the launch of multi-chain

functionality with assets like Bitcoin or Litecoin, which would drastically shrink the appeal of

trading on the Nash platform.

๏ “Build it and they will come” does not always pan out favorably. Fabio has confirmed four years

of minimum runway.20 Given the significant amount of competition within the exchange space,

it’s possible the Nash platform doesn't quite catch on within 4 years, even if everything

technically and legally rolls out perfectly.

18Crypto Exchanges Have Thick Competition: [Link]

exchanges-compete-for-30-market-share

19 Binance Creative Innovation: [Link]

20 Fabio Comments on Runway in Q2 Report: [Link]

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7. IN CONCLUSION…

“TLDR;”
Upside:
First multi-chain DEX (trade BTC, ETH, NEO, etc. via your hardware wallet) with a
trading experience comparable to exchanges like Binance (which is shutting out US
traders in September)

First compliant, dividend-issuing security token

Fiat on-ramps: licenses in the US, Canada, and Europe to offer fiat gateway at
launch

Launching this month (August 23rd, 2019)

Effective development team with a proven track record

Self-custody feature relaxes many regulatory constraints

Downside:
Tough competition. The crypto exchange market is highly saturated. Without
effective marketing, even the most impressive tech may not generate user traffic

Unforeseen regulation could dismantle Nash, DEXs, or the entire crypto space

Technical uncertainty. The team could be faced with security problems, significant
delays on features like multi-chain asset trading, or is unable to deliver on any of its
core promises.

Customer service. It’s tough to know whether an exchange can resolve support
tickets at scale until they are actually faced with them.

The NEX Token may only be valuable if Nash becomes a top exchange.
Conventional formulas suggest Nash may need to sustain ~$26m daily volume
(Poloniex) to even justify its current trading price of ~$3 per token (as of
8/08/2019).

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 In conclusion, Nash is aiming for the stars in a highly competitive and saturated market. They face

a daunting task but they offer a unique business model, setting them apart from their non-compliant

centralized competitors. The NEX token will be an intriguing experiment for organic community growth.

Token holders will legally accumulate dividends through Nash’s trading revenue, which could trigger a

cascading effect for Nash user growth: the more user traffic a NEX staker helps generate, the more that

staker profits.

While this document is more focused on their crypto exchange, it should build investor confidence

knowing the Nash team is meticulously planning for a long-term future beyond just crypto. Nash is

rolling out several additional pillars such as Nash Pay — which seeks to be a Venmo equivalent that

integrates directly into the exchange — as well as a listing platform for registered security tokens to

compete with the likes of tZero and other popular security token exchanges.

The ultimate irony of today’s crypto exchanges is the customers they profit off of champion the

blockchain and self-custody, yet these exchanges do not leverage blockchain technology to help run

their core infrastructure. In contrast, Nash looks to be the first exchange that actually leverages

blockchain technology for a multi-chain trading experience comparable to centralized exchanges.

As the Nash exchange makes themselves available to the public on August 23rd, 2019, Arturo

capital looks forward to watching this platform launch and participating in this progressive decentralized

ecosystem. Success or failure, crypto is long overdue for a highly innovative and legally compliant

exchange platform.

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