NXTER.ORG

Swap your EIX and MMNXT

As announced on 13.01.2015:

EIX and MMNXT has been merged into a new asset, NEXT.

NEXT dividends

  • NEXT dividends are paid in NXT.
  • NEXT will pay dividends on the 1st and 15th of every month.
  • NEXTBOND, which arbitrages on BTC/USD exchanges, will pay 2% of its profits to NEXT. This new revenue stream will be added to the EIX and MMNXT bots after the swap.

You can read more about NEXTBOND here.

How to swap your MMNXT/EIX for NEXT

to receive the new combined asset, NEXT:

Send your MMNXT/ EIX to NXT-ESXQ-5QFC-ARPP-HG2C7

2.3 EIX per NEXT = 247,043 NEXT assets swapped for EIX
29 MMNXT per NEXT = 298,212 NEXT assets swapped for MMNXT

You should expect to receive your NEXT within 24 hours.

No more dividends will be sent to EIX and MMNXT holders

Please swap your EIX and MMNXT to NEXT assets to receive further dividends.

[AE blog] EIX to merge with MMNXT; BOND to launch

Trading funds E9 (EIX) and MMNXT are merging under a single fund, NEXT. This will allow better use of combined funds, more clarity and no conflict of interest between the activities of the two funds. At the same time, a new bitcoin bond (BOND) will launch to generate further revenues for NEXT and directly for BOND holders through arbitrage on BTC/USD exchanges.

BOND

Arbitrage across bitcoin exchanges currently yields returns of up to 4% monthly. 1 BOND will represent 1 bitcoin (SuperBTC) on the Asset Exchange, with a guaranteed monthly payout of 2% in superBTC. The remaining income will go to NEXT assetholders. BOND may be redeemed for SuperBTC at any time by sending back to the issuing account. They can also be traded on the AE’s secondary market. BOND will pay monthly, on the first of the month.

All reasonable security precautions are taken and arbitrage is low-risk, but investor funds cannot be guaranteed against theft or exchange hack.

MMNXT/EIX asset swap for NEXT

MMNXT and EIX will be combined into a single asset, NEXT, which will pay out twice a month (1st and 15th) in NXT.

A total of 10% of active NEXT assets will be reserved for management payments. 25% of the total NEXT issue will be reinvested to grow the fund (similar to EIX’s current 29% reinvest and MMNXT’s 25% buyback). It makes sense for NEXT to hold 25% of NEXT’s assets to automate this.

A total of 1 million NEXT will be issued, with 15% being held back for future asset sales if required (there is no immediate intention to sell more assets). Of the 850,000 active assets, a total of 35% will be retained for management and reinvestment (85,000 + 212,500 = 297,500).

This leaves 552,500 NEXT assets for swap with existing MMNXT and EIX assets. No MMNXT or EIX assets are currently retained for management payments, only founder shares. (EIX currently reserves 15% of income for management payments as well as 29% for reinvestment.)

EIX price: 14.5. Assets issued: 568,200. MMNXT price: 1.15. Assets issued: 8,648,144. Total combined market cap of MMNXT and EIX is therefore estimated at around 18 million NXT; there is some daily variation. Thus 552,000 NEXT assets will be swapped in proportion to MMNXT and EIX market cap, at 32.6 NXT per NEXT, with each being worth around 21 NXT when considering all 850,000 active NEXT assets.

2.3 EIX per NEXT = 247,043 NEXT assets swapped for EIX
29 MMNXT per NEXT = 298,212 NEXT assets swapped for MMNXT
Total: 545,255. The remaining 6,745 assets will be retained by NEXT for reinvestment, bringing the fund’s total of its own assets to 25.8%.

The asset swap will begin on 16th January, after EIX’s next dividend. BOND will launch shortly.

Further details will be posted in due course.

Source: SuperNET Slack / https://nxtforum.org/assets-board/e9-multistrategy-nxt-hedge-fund-bots-fx-crypto-trading-and-asset-portfolio/msg205742/#msg205742

Crunch! What can we expect next from Nxt?

We’re entering a new phase in Nxt’s business cycle – and it might be one we’ve never seen before. What happens next is uncertain, as ever, but we can at least be sure there are new challenges ahead.

credit-crunch

Back in May the NXT market turned a corner after a downward slide that lasted most of a year. Around that time I wrote an article about what had happened in that year. Basically, the decreasing value of NXT prompted people either to sell their coins or invest them in assets. The bear market had the same effect that central banks engineer with quantitative easing and interest rate cuts: increase inflation and make people spend the money they think will be worth less tomorrow.

Nxt is an odd system, economically. There are just a shade under 1 billion NXT coins, and there will never be any more. It’s a deflationary currency, as I explored in this article. No big deal, so are many others. But it’s not just a currency. It’s an entire economic platform, and that system crucially includes the Asset Exchange, our very own, very popular cryptostocks’ system. The best of those cryptostocks have been extremely well funded over the past year; in that respect, the bear market may have been the best thing that ever happened to Nxt. The cash they collected provides a solid foundation for growing businesses and pumping money back into the Nxt ecosystem in the form of future dividends. As a result, we can expect rising prices. And herein lies the next challenge: the Credit Crunch.

The credit crunch

Healthy business isn’t the only factor driving the price increase of recent weeks. In fact, it’s a very minor factor at this stage in Nxt’s development. Right now a wave of money from China is making a much greater difference, probably as a direct result of their stock market tanking. But the point remains the same: if inflation causes people to invest their NXT in revenue-generating businesses, what will rising prices (deflation) do?

It’s a little early to be a doom-monger. In fact, we’re barely out of the bear market – if at all, depending on what metrics you use to judge the exit point. But already the price action is impressive. At the time of writing, NXT’s price has roughly doubled in just six weeks.

It’s been a while since we’ve seen that kind of rise. Critically, we’ve not seen such a rise since the Asset Exchange has been up and running. NXT saw a spike up to its all-time high shortly after it was launched, at the beginning of 2014. Then another bull run in May saw a run up to $0.10 and a $100 million market cap – dubbed the ‘PayExpo pump’, but more likely mainly caused by Chinese speculators again. The Asset Exchange was just starting to become active at that point, but was certainly not the thriving hub of entrepreneurship it is now. The only other major rise in price happened at the end of last summer, when jl777 launched SuperNET. That time, though, the increase in NXT price was caused by the asset launch. As James had offered a 5% bonus for NXT and BTCD purchases, a huge number of people bought NXT to fund their SuperNET investment. The effect on what was a fairly thinly-traded market was substantial.

Now? For the first time ever, the Asset Exchange is at full steam contemporaneously with NXT possibly being in a bull phase.

China is a huge factor in that. As time goes on, the asset market itself will contribute more and more, since businesses will need to buy NXT to pay out as dividends to their asset holders. The irony is that the more successful those businesses are, and the more they push up the price, the less people will want to invest in new businesses. A rising NXT price equals a credit crunch.

However, it’s possible that those businesses grinding out the dividends will, by doing so, effectively solve the credit crunch problem themselves but only if existing investors see those dividends as ‘free money’ and use it to take a punt on the next big asset. Then again, maybe they’ll just decide to blow it all on a Lambo or a few rounds of very expensive drinks.

Beware fiat

And so to the bottom line. What does all this mean for Nxters?

For starters, not all assets are the same. Compare your average mining outfit (or rather, one that actually pays out instead of cutting and running…) with an arbitrage and market-making bot, like MMNXT. The former converts NXT to fiat after the ICO, uses it to buy mining rigs and then pays out in NXT that it buys with its mining proceeds. By contrast, the latter might convert some NXT to BTC, but generates revenues from low-risk trading activities, taking advantage of price differentials across different exchanges.

Assuming the mining asset is legit, it makes perfect sense to invest in a bear market: NXT is sold for fiat, which is used to buy mining equipment. So you’re not really investing NXT, you’re investing fiat and then the further NXT falls, the more you receive in dividends. In a bull market, by contrast, mining assets can be a disaster. Imagine, for example, buying an ASIC for 1 BTC when the price was $100, only to see it rise tenfold. Your returns diminish to 10 percent of what they were in BTC terms, without taking into account any other factors like increased ‘difficulty’ prompted by extra competition entering the mining race in the hope of easy returns.

The arbitrage asset, on the other hand, isn’t subject to the same risk. All things being equal, the NXT revenues stay the same – and in reality, rising prices bring more exchange activity and more opportunities for arbitrage.

For investors, then, there is a clear warning: make sure you know how the asset will generate income. If it involves conversion to fiat at any point, there’s a risk of exchange rate changes wiping out the benefits of any revenues, or worse.

For asset issuers, there’s the problem of attracting enough investment to launch. Simply, if investors think their NXT will be worth ten times more if they keep it in their wallet for another month, they’re unlikely to part with it to fund a speculative project. That ought not to be a problem if the business in question isn’t vulnerable to fiat/crypto volatility – but it might still be a problem anyway. Investors aren’t always rational, and if they are, they may take into account the fact that other investors aren’t rational. I know that an asset like MMNXT won’t lose NXT if the price rises – its accounts will still be just as well funded as they always were. But what happens if you suspect a significant number of existing investors are intending to sell their MMNXT and cash the NXT sale proceeds out to fiat? Then I’ll be reluctant to buy, knowing that MMNXT will likely drop in value. I might even sell it myself to anticipate the fall.

This is why it is rare for an asset to appreciate in NXT terms at the same time that NXT appreciates in BTC terms, at the same time that BTC appreciates in fiat terms. A rise in asset prices tends to correspond with a fall in NXT prices, and a rise in NXT prices tends to correspond with a fall in asset prices. The same with NXT/BTC.

Nxt has an odd counter-cyclical property built into it, whereby the seeds of the next bull market are sown during the crash of the previous bear market. It’s an interesting dynamic, and one that might be unique to Nxt. Over the next year, we’re likely to see whether it’s a problem. If it is, we’ll need to wait until the next bear market for businesses to attract major rounds of new capitalisation. That will be hard to stomach at the time. But it will be very good news for the next upturn.

NXT Market Report: 20 October 2014

Welcome to this week’s market report. Although NXT experienced a rather unspectacular week, it nevertheless ended happily: We are back to #5 on coinmarketcap.com! To be honest it didn’t happen because of NXT’s strength but because our competitors have decreased more in price, especially Dogecoin which has been undergoing a small sell off.  NXT’s market capitalization is down but even more disappointing is the low trading volume. The daily average was about USD 40’000 with a peak of USD 90’000 (14 October). Despite this, Bter’s order book (scroll down) leaves a positive impression: There is a buy support of about 900’000 NXT down to 5200 satoshis whereas the selling pressure is comparatively low: 200’000 NXT up to 6400 satoshis.

coinmarketcap 20102014source: coinmarketcap.com

Project NXT Storm – what is it?

At the beginning of October a member of the nxtforum.org had the glorious idea of stress testing the NXT network. The idea quickly captivated many people and, as a result, gave rise to Project NXT Storm. The plan is to test the robustness of the NXT network by using all available features, especially the NXT Asset Exchange. That’s the reason why Project NXT Storm is being mentioned in this market report – it’s an outstanding opportunity to discover the limits of the NXT Asset Exchange – if there are any! A successful outcome will prove that the AE is ready for its next step – the first ever use of the NXT Asset Exchange by a large corporation. The plan is to repeat such a stress test after every major NXT release.

What’s going on in the NXT Asset Exchange?

MMNXT (ID: 979292558519844732): MMNXT is a market making and arbitrage fund for the NXT Asset Exchange issued by coinomat (who are also responsible for coinomat.com). To quote from coinomat’s own description of the asset:

This is an automated trading fund for NXT asset exchange. Its goal is to provide market making for most liquid AE assets. Also we strive to move most of NXT trading to NXT AE Multigateway assets, thus providing additional liquidity for NXT which should assist in keeping its price more stable. Trading will be carried out at NXT Asset Exchange and other exchanges supporting NXT.

Trading is both long and short, that is you buy lower to sell higher and you sell higher to buy back lower. The profit is converted to NXT, also when trading MGW assets profit can also be realized in corresponding crypto, and converted to NXT afterwards.

The fund will pay out 60% of its profit to the holders of the token every Friday. Initially, the bot will only be operating as a market maker for the most liquid assets on the NXT Asset Exchange. In November MMNXT plans to carry out arbitrage trading on Bter, Poloniex and Cryptsy. The first dividend pay out will take place on Friday (24 October).

NXTmovie (ID: 2240155853020376741): NXTmovie intends to write scripts for films in which they aim to educate the lay person about cryptotechnologies:

Loosely based on real life events, the NXT Film Project is an edgy cyber thriller that narrates subversive and often vicious attacks that are conducted using technology. The plot showcases cryptoplatforms and communities, how they are disruptive to established institutions, and how technology can be used with either good or evil intent.

It further aims to educate the lay person about cryptotechnologies, while also shedding light on the criminals who seek to take advantage of them. At the same time, it contextually demonstrates the technology’s efficacy and utility via the power of narrative storytelling.

A nice idea in its own right but the project is also pretty interesting to investors purely from the point of view of its ROI. NXTmovie has issued 1’000’000 NXTmovie assets – 30% were sold in an ICO with an early bird price of 1 NXT, 33% were allocated to the three core members and the remaining 37% will be sold later on the NXT Asset Exchange at a higher price (small batch quantities of 25k NXTmovie assets with a continuously increasing price). Currently, early bird assets are already trading at 1.5 NXT, an increase in price of 50%! To guarantee an early source of revenue the team behind NXTmovie is focusing on  driving as much traffic as possible to generate profit through advertising. The earnings will be distributed evenly across all asset holders.

Furthermore NXTmovie offers blockchain-based businesses the opportunity to be featured directly in the film script, for a fee. These earnings will be distributed among all assets holders as well. Last but not least we shouldn’t underrate the promotional effect for NXT which such a movie could have (assuming of course that the film script gets made into one), especially since it’s one of the main goals of this project.

I hope you enjoyed the market report as much as I did writing it. Please leave your feedback at nxtforum.org.

This market report is for general information and news purposes only. It does not take into account the reader’s personal circumstances, objectives or attitude towards risk. It is not (and is not intended to be) any form of advice, recommendation, representation, or endorsement by the author or the web site owner and should not be relied upon when making (or refraining from making) any investment decision.