EMX | EverMarkets review

Crypto Surge
Aug 30, 2019 · 6 min read

Intro & disclaimer

In this fundamental review we will cover the EMX exchange from EverMarkets Ltc, the latest selected sponsor of the CryptoSurge group.

Notice that this is a paid review that aims to be informative, that said, certain information could become outdated, inaccurate or correspond with personal opinions of the author that is not a financial advisor and received a compensation to write the content.

Also notice that the EMX token has not been registered with the SEC and could be considered as a security by the SEC or by other similar regulator at your local jurisdiction, please contact a legal advisor to know more details about this aspect before buying EMX token.

For those mentioned reasons and because trading at the cryptocurrency market is highly volatile and riskier than traditional markets, we advise you to consult a certified financial advisor, a certified legal advisor — or both — before taking any investment or trading decision.

For & Against

FOR (+)

  • Crypto, Stock, precious metal and forex collateralized in Bitcoin! Sweet!!
  • Accurate, live updated costs for market orders.
  • Small wicks compared to Bitmex (Muh Stop Hunt!)
  • Referral campaign to earn as much as 35% commission on your referred ones.
  • Great interface and all drawing tools and indicators available (with room for improvement compared to the TradingView war machine)

AGAINST (-)

  • Work to do in terms of liquidity providers
    (below 100 mill total volume per day as we speak)
  • EMX token not registered at EDGAR database (S.E.C.), is it a security? Or exempted?
  • A more solid jurisdiction for their company would give more confidence (Bermuda)

What is EMX ?

EMX is a new derivatives exchange created by EverMarkets Bermuda Ltd (read more at the Administrative details title below) that differentiates from other exchanges on the cryptocurrency sector because they are the only one to offer the traditional markets with access to commodities and equities — and act as an all in one exchange.

EMX give traders exposure to real world assets. Sp500, gold, silver, yuan, euro, Nikkei etc. and is the only exchange to offer swaps or futures on those assets collateralized in bitcoin. EMX will also launch innovative contracts like alt/btc volatility indexes, btc market cap dominance indexes and many more.

As per today (26th August 2019), we can find the following pairs:

  • BTC-PERP — Bitcoin Perpetual Swap contract [read more]
  • BTCU19 — Bitcoin USD Futures [read more]
  • XTZ-PERP — Tezos Perpetual Swap contract [read more]
  • EUR-PERP — EUR/USD Perpetual Swap contract [read more]
  • GOLD-PERP — Gold USD Perpetual Swap contract [read more]
  • US500-PERP — US500 Perpetual Swap contract [read more]

Margin trading & interface of the EMX exchange

Traders at EMX derivatives exchange have the possibility to use leverage on their positions. The maximum amount of leverage allowed depend on the chosen pair and could go between 20x and 50x.

The interface has been curated with extreme care and has very interesting features like the repositioning of the different panels to our convenience or a “trade mode” inside the price graph itself that allows to execute fast market orders.

At the Order Entry panel I was also pleased with a detail that lacks at many important exchange (Binance is terrible in that sense), once we place the amount we want to buy or sell, the cost of it auto update every second giving the most accurate value possible before we perform the transaction.

On the chart side they integrated chartiq, a javascript library that allow to have drawing tools and indicators on price charts, and while they made an excellent job on that side, it still feels awkward in comparison with Trading View.

This is not a blocker to use the platform but would require a new user some time to adapt and find the not always obvious icons to perform usual technical analysis tasks.

Avoiding SL hunt at Bitmex

One of the most often criticized issues at Bitmex, the most used leveraged exchange for cryptocurrencies as we speak, is that market makers are pushing momentarily the prices to exaggerated levels in order to hit stop losses and liquidations. This happen because at Bitmex, liquidity providers are paid by hitting those SL’s, what we call “SL Hunting”

We should periodically measure SL hunting by comparing the length of the wicks between different leveraged exchanges and this is what I did between EMX and Bitmex

Certain cases during last hours were particularly appealing, like the #9 that pushed the price 279$ above the closing candle, while at EMX it measured only 160$. This difference of 110$ may not seem huge, but is enough to liquidate a position set above the resistance! And we don’t want that right ?

On the overall, most wicks were considerably longer at Bitmex than at EMX as I could observe during that lapse of time the 26th August 2019.

Team

EverMarkets has a team composed of several profiles with extended experience as shown in their Linkedin. The company has two co-founders, Jim Bai, VP at Citi for 6 years, and Craig Austin, an ex IT engineer at Microsoft.

Craig Austin (left) and Jim Bai (right), Evermarkets co-founders
Sohyung Kang (left) and Jim Falvey (right)

They also have other prominent team members like Jim Falvey, specialized in financial services regulatory and compliance, ex General Counsel at ICE or Sohyung Kang ex director of production at HBO. [read more]

VC’s backing Evermarkets

EMX has some well known actors at the Blockchain sector backing them like #Hashed and Bain Capital Ventures, and more recently BN Capital, a leading venture capital fund founded at Shanghai.

Venture Capital support is extremely important during the first stages of a startup, not only for investment reasons, but also to allow to share their network.

IEO at Probit

Emx is running a token sale the 9th September with a total hardcap of 8 mill, from which they already raised 5 millions in 2018, so we can expect their actual cap to be of 3 milliions USD.

A token sale (IEO) will be performed through Probit, a Korean exchange, with a IEO hardcap of around $200,000 and a price per token of $0.15.

For more information about the IEO — https://support.probit.com/hc/en-us/articles/360032328412-EMX-EMX-will-launch-IEO-with-ProBit-Exchange

Token distribution and sale rounds

An important factor is to know how many tokens will be unlocked at launch and the average price that was paid for those unlocked tokens.

Regarding that question, EMX team has provided the following information for the purpose of this review:

Seed and private rounds

$0.0325 / Day 0 no unlock / 12 months vesting
$0.04 to $0.12 prices / Day 0 no unlock / vesting from 2–6 mos
$0.0615 / Day 0 unlocked (only round fully unlocked on day 0, less than <5% of total sale)
$0.125 / Day 0 200K tokens unlocked / vesting 3 mos
$0.13 (Current Round) / Day 0 1.5m tokens unlocked / vesting 6 mos

Administrative details

EMX is the name of the derivatives exchanges from the company EverMarkets Bermuda Ltd properly registered at Bermuda with the company number 53912 and with an office at Palo Alto (CA) — 851 Seal Avenue. They also claim to have an exchange license/registration in Bulgaria.

Source: https://www.gov.bm/53912/evermarkets-bermuda-ltd-craig-s-austin-53912

As per today, no exemption from selling securities or registration as security is available at SEC database (EDGAR) under the cited company name.

Source: https://www.sec.gov/cgi-bin/browse-edgar?company=EverMarkets&owner=exclude&action=getcompany

UPDATE: EMX has mentioned having an exchange license from Bulgaria (this info should be validated with some kind of document or official database )

Crypto Surge

Written by

Research group specialized on fundamental analysis of new blockchain technologies.

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