GAINS Associates
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GAINS Associates

NASH — Telegram AMA — February 18

On Thursday, February 18, we had the pleasure to welcome to our Telegram chat:

Kellogg Fairbank, Head of Global BD,
Chris Fenwick, Communications Consultant, and
Clare Saunders, Marketing Manager.

We asked them questions about the development of Nash.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

Nash bridges the gap between crypto and your local currency. Nash’s crypto/cash exchange service combines the lowest fees with instant delivery to the safest software wallet.

NEX has simple tokenomics following a dividend discount model. Investors are protected from fraud and market manipulation. Dividends are credited directly to your trading channel balance. Dividends are paid out every 24 hours in BTC, ETH, USDC, and other coins traded on Nash.

With the Nash card, user can spend their investment profits or staking dividends just like cash, access their Nash checking account, or spend your crypto anywhere and their Nash card will be accepted like credit and debit cards.

Introduction

Q — Ayeley Commodore-M from GAINS: Let’s start by hearing a bit about you. What did you do before crypto and did you have any other previous venture in crypto?

AKellogg from Nash: I’ve worked as a senior exec for several FinTech companies, including Braintree/Venmo and PayPal. I’ve also been a co-founder of a couple of tech startups. Like most of us, I’ve been an investor in crypto for several years. At Nash, I lead business development and marketing.

Q — Ayeley Commodore-M from GAINS: For how long have you been working on Nash? How many people are on the team?

A — Kellogg from Nash: I joined last summer. We have 34 team members.

About Nash

Q — Ayeley Commodore-M from GAINS: Let’s talk about the project. What is the project about in a few simple sentences?

A — Kellogg from Nash: Nash bridges the gap between crypto and your local currency. Our crypto/cash exchange service combines the lowest fees with instant delivery to the safest software wallet. With Nash Link for business, merchants can easily accept crypto from their customers and receive cash. Our digital banking services will seamlessly integrate DeFi-powered high-interest savings and a crypto debit card.

Q — Telegram user Ivan Letov: One of the most popular problems for newbies is the deposit and withdrawal of fiat money. How is this feature implemented on Nash? Are you planning to issue a payment card using Visa or Mastercard?

A — Chris Fenwick from Nash: We’re partnering with Railsbank, as announced in our strategy article.

Q — Telegram user Abdullah: “With Nash Link for business, merchants can easily accept crypto from their customers and receive cash.”

Would this be in the form of P2P? In case of transaction disputes between customers and merchants, would Nash step in?

A — Kellogg from Nash: Nash is a fully compliant cash/crypto exchange and complies with the local jurisdictions we operate in. Unfortunately, there are some countries that we can’t offer our services where local law does not allow for it. For Nash Link, any European-based company can use our services to accept crypto payments from any person or company globally.

Q — Twitter user Regillio: Do you think that banks will lose ground to fintech companies like Nash or can the traditional banking system and fintech work side by side? -Your thoughts on blockchain shortly and the role of Nash.

A — Kellogg from Nash: I think the traditional banking world has finally caught on to the fact that crypto is here to stay, and safe to say is the future of finance. Banks that embrace crypto synergies will succeed in the short to long term.

We’re already seeing these kinds of synergies today. One of the more interesting is crypto card providers, powered by Visa and Mastercard. Crypto debit cards offer consumers the opportunity to earn significantly more in cash-back rewards than the traditional consumer card, including rewards paid in bitcoin and stablecoins. Companies like Nash, which can help bridge the gap between traditional and decentralized finance and seamlessly merge the two, are the future of this industry.

Q — Twitter user Robert: With the new strategy how important is the exchange for Nash? Do you expect new users or traders to log in and using your web app or buying coins using mobile?

A — Kellogg from Nash: We’re no longer pushing the L2 exchange as our main retail product. However, it remains crucial for allowing our other products to work — it’s what lets us offer 0% fees for the main assets, and also powers our solution for merchants, Nash Link (where you can receive crypto and get paid out in cash without even managing a blockchain address). So the exchange isn’t going anywhere. We’ll double down on liquidity for the main pairs and be pursuing professional traders who are attracted by our combination of low fees and high security.

For retail users, yes, we envisage a mobile-first approach, with people purchasing and selling on spot markets through the mobile app, rather than placing limit orders with the exchange UI. It will still be there, but our focus will be on the simpler buy/sell interface.

Competitive Advantage

Q — Ayeley Commodore-M from GAINS: Is there any other crypto competitor(s) that seeks to do what you are doing? And what sets you apart?

A — Kellogg from Nash: There are other platforms, but they can’t compete with our fees. Also, most other platforms can’t compete with our wallet security, based on multi-party computation. You can read more about that here.

Longer-term, we hope to have unique digital banking offerings when it comes to making DeFi accessible.

Q — Telegram user Seatbul: The trading volume on Uniswap and Balancer is growing every day. Do you feel the competition from decentralized exchanges and what is your strategy to become the market leader?

A — Chris Fenwick from Nash: We won’t really be competing for the same market with our new fiat gateway and digital banking services. Also: Uniswap is difficult for new users to get to grips with, especially given the crazy ETH fees at the moment. We’re really hoping for a more intuitive experience, especially when it comes to moving between cash and crypto. That will truly be visible when we integrate checking accounts.

Token

Q — Ayeley Commodore-M from GAINS: What is the use case of the $NEX token and how does it capture the value of the ecosystem you’re building?

A — Kellogg from Nash: NEX is a revenue-sharing token. Users can lock their tokens in a staking contract, with the maximum two-year lock offering a 75% proportionate share of company revenue.

NEX offers a very accurate valuation of the Nash ecosystem since dividends stakers receive are in direct proportion to the revenue we generate. Valuing the token according to a dividend discount model is hence very easy — although that doesn’t account for speculation about future success. Because revenue-sharing falls under the traditional definition of securities, we registered NEX with the FMA of Liechtenstein as the first digital security token in Europe. We believe that other exchange tokens are in fact unregistered securities, which could have consequences for their investors should regulations be enforced. Look at what happened with Ripple (XRP). NEX investors are protected from such consequences, as well as market manipulation. It’s worth noting that NEX is the only fully compliant exchange token. Other exchanges that are compliant don’t have tokens, whereas those that do are not fully compliant. As such, NEX is the only way to invest right now in the possibility of much stronger compliance in the crypto space.

Q — Telegram user Noldan East: Elaborate more on how the NEX security token allows delivering strong token economics for investors in Nash exchange?

A — Clare Saunders from Nash: The strong tokenomics is simple — it follows a dividend discount model. The longer you stake (up to 2 years) the higher % rate of dividends you will receive.

Q — Telegram user 404 Page not found: Why is $NEX as a native token from Nash not traded on the Nash exchange?

A — Chris Fenwick from Nash: Re. NEX: it’s a security, and we don’t have the license required to trade it. You can find it in other secondary markets like Uniswap. We even integrated the Uniswap pool into our mobile app.

Q — Telegram user wJustin: Where can we buy the NEX token?

Q — Telegram user Daendels: Ultimately we need $NEX to be listed, so do you have a realistic estimate for acquiring a Security Dealer’s license, and subsequently an OTF license? How long after launch before we can expect BTC pairs?”

A — Chris Fenwick from Nash: The digital securities market is very small, so pursuing these licenses is not a business priority right now. If we want $NEX to appreciate, we need more users and revenue adding real value to the token.

Technology

Q — Telegram user Dinara Dwi Safina: Currently, NEX tokens run on ERC20 and NEP5. Are there any plans for NEX tokens to also run on other networks such as the Binance Smart Chain (BSC) or other networks that have lower transaction fees?

A — Chris Fenwick from Nash: There’s no current plan to make an additional token bridge, but we will add an ETH-based staking contract in the future.

Q — Telegram user FoRt: Decentralized exchanges are in a better position to maintain sufficient liquidity in the market at all times. By working on blockchains like Ethereum, decentralized exchanges face challenges with their transaction execution times as well as their commissions, which make trading these exchanges expensive and complicated. How can $NEX as a decentralized exchange under the Thorchain and Cosmos infrastructure offer a solution to this problem in general and offer traders a better experience?

A — Chris Fenwick from Nash: Our L2 exchange is unique when it comes to the main pairs: BTC and ETH. For our retail offering, we’re moving towards pushing the local currency pairs at a spot price. We won’t be looking into building another DEX with totally different tech.

Security

Q — Telegram user Demvrick: How secure is the funds and user data on Nash? What kind of security system do you implement? Does Nash ask its users to complete KYC?

A — Chris Fenwick from Nash: Users need to complete KYC to use the fiat ramp and trade above $5,000 per day on the L2 exchange.

You can find a description of our wallet system + signature protocol here.

If you’re more technically inclined, we also open-sourced the wallet protocols so you can see what Nash is doing and how we generate seed phrases.

Q — Telegram user Dayana: Tell us a little bit about security? Have you done an audit of the platform? Are smart contracts error-free? What are the test results?

A — Chris Fenwick from Nash: We’ve had several audits by major firms, including NCC Group and Recurity. There were no critical issues.

Partnerships

Q — Telegram user Aurel C: What can you tell about the strategy doc's DeFi partner?

A — Chris Fenwick from Nash: Nothing until we announce the partnership officially. These agreements come with planned co-marketing, etc. We’re excited about it, that’s for sure 😊

Q — Telegram user Thomas: What is the goal with the défi partner? Bring new coins tokens? Or trying to push people to use cash coin conversion? Or stacking?

A — Chris Fenwick from Nash: We will list their token and use their tech as part of our savings product (bringing it to market much faster). We cannot give any more details right now.

Finances

Q — Ayeley Commodore-M from GAINS: Did you raise funds so far? And how did you handle them? Are you planning to do any future raises?

A — Kellogg from Nash: Yes, Nash raised over 20 million USD in our public security token offering and over 10 million USD from leading venture capital firms.

Once we’ve successfully hit our growth metrics for Europe we’ll look to raise a Series A to push into new markets. Series A will help fuel that future growth: licenses in the various jurisdictions, marketing, and adding new team members.

Q — Telegram user David: Please elaborate on what you meant by the Series A fundraising round in the future? Wouldn’t it negatively affect the NEX token and stakers to bring more priority to shareholders?

A — Kellogg from Nash: No not at all, any fundraising would be done with existing shareholders as our priority. Remember, all Nash employees are also “shareholders’’ in Nash, and so we take this very seriously. Series A could be a combination of equity or tokens, or both, the details of which have not even been considered because it’s not a focus at this time. However, any fundraising will be for the sole purpose of expanding into new markets, mainly to acquire licenses (which are expensive when you expand globally) and pay for marketing.

Business Development

Q — Ayeley Commodore-M from GAINS: What stage is your project at? And what should we look forward to in the coming months?

A — Kellogg from Nash: The growth phase, with a focus on Europe. We’ll be releasing a ton of new features that will simplify access for retail investors

Q — Ayeley Commodore-M from GAINS: How would you say adoption for your product has been? And what plans do you have to bring in more people to use your product?

A — Kellogg from Nash: The exchange didn’t quite have the market fit we wanted. However, the fiat ramp saw 20% month-on-month growth since its launch in September 2020. Thankfully, we can use the exchange to power the fiat ramp, letting us offer our leading 0% fees.

Q — Twitter user Garda: Considering the changing focus from L2 exchange to wallet trading and savings, how will Nash catch up to the projects that have already positioned themselves in this area? Will Nash offer some innovative DeFi services that are yet to be established?

A — Kellogg from Nash: Firstly, Nash will be able to offer better basic crypto buying/selling services than competitors. Our exchange lets us offer 0% fees for the main assets, and L1-only assets will still lead the market with just 1% fees. We won’t try to hide fees either by artificially inflating spot market prices. In addition to being the best-priced option, don’t forget that Nash also comes with an ultra-secure MPC wallet. We’ll be rolling out even more security policies for this shortly. This will be the safest software wallet available, and perfect for new users. We’ll be creating MPC wallets for new blockchains that we integrate, so in some cases will be the only MPC option available.

Secondly — yes, Nash will be offering some innovative DeFi services! We’ll be trying to make token staking and high-yield interest as accessible as possible, beginning in Q2. However, things will get even more interesting in Q3, when we integrate full checking accounts with IBANs into the Nash platform. You’ll be able to use Nash like a normal bank, but we’ll be giving users access to a simple crypto-powered savings account, making it possible for inexperienced users to take advantage of DeFi.

Q — Telegram user 404 Page not found: I saw from the Nash Exchange, only a few coins/tokens can be traded. Such as BTC, ETH, NOIA, NEO, LINK, GUNTHY, GAS, and BAT. Do you have any plans in the future to add more coins/tokens for trading?

A — Chris Fenwick from Nash: Yes, we plan to add at least 10 more major coins this year. You can read about these plans in our 2021 strategy article

The issue is that so far, Nash has offered a Layer-2 exchange. This makes it very hard to add new blockchains (state channels must be built). It also makes it harder to keep deep order books, because we cannot do paper trading and need all assets to be on the chain. Our L2 works amazingly for the top pairs, but providing liquidity on every pair is a challenge, and adding new chains (not just ERC-20 tokens) is a huge challenge.

That’s why we’re shifting to adding wallets and allowing direct trading at spot prices.

Q — Telegram user vario teguh: What strategies will you employ to bring non-crypto-natives into the Nash ecosystem? How does Nash balance between developing technology and increasing the $NEX token value?

A — Chris Fenwick from Nash: We’ll be beginning our main advertising campaigns this Q1.

We believe the token value will increase as we release more products and gain more market traction. We are not going to artificially pump the token. It’s a security.

Q — Twitter user @Greyhair_08: How soon are we going to see DeFi and NFTs integration across Nash?

A — Kellogg from Nash: DeFi staking will be coming in Q2. We’ll be developing a simplified crypto savings product as well with the help of a partner. In Q3, when we add checking accounts, we’ll also be bringing out a simple interface between cash and DeFi-powered savings.

Nash has no plans for introducing NFTs at this time.

Q — Telegram user NerV: Will Nash create something similar to Metamask? Allowing third-party applications to gain a benefit from nash MPC wallet.

A — Chris Fenwick from Nash: We’re not going to make a browser extension. The necessity of such extensions was kind of killed by WalletConnect, which we integrated (WITH MPC) into our mobile app already.

Q — Telegram user Carglos Cans: Are you planning to expand the $NEX project to other countries? Do you have a team in each country to help you make your $NEX project known to communities from other countries?

A — Chris Fenwick from Nash: We want to expand globally, but are focussing on Europe for now since that is where we have the licenses to operate. When we are profitable in Europe, we’ll start expanding elsewhere.

Q — Telegram user Cassanova: How will Nash address issues like missing market makers on exchanges to provide liquidity and grabbing a bigger chunk of the market from CEXes.

A — Chris Fenwick from Nash: Liquidity on our main pairs has increased dramatically over the last couple of weeks thanks to a new market-making partner.

We aim now to compete mainly for retail users wanting simple buy/sell tools. In that regard, yes, we hope to compete with big CEXes because we will offer much better fees (0%!) and security (MPC) and digital banking services coming later in the year.

The L2 we will market to pro traders via our business development team. We know they are interested — the fee structure is good for them and the security.

Q — Telegram user abang piscok: What kind of marketing can we expect on launch day? Will your banking partners and seed investors promote the platform as well? I do not think Twitter is the best vehicle for the call to action!

A Clare Saunders from Nash: We agree that Twitter is not always the best place for a CTA or the only one. Many people confuse marketing and advertising. We have been marketing the product by bringing it to institutions and businesses and creating collaborations with folks like Gunbot. With every agreement we have we arrange co-marketing. Nash is only interested in data-backed advertising. We do not believe in spending money if we are unsure if there is an ROI. As we said in Q1 there will be a stronger push to spread the word about Nash through various channels but we will not be putting our name on soccer jerseys 😜

It was a pleasure having you join our community today. Anything else you’d like to say?

We’d also be tracking with a keen eye all the awesome features you have for your community later this year like the Integrated checking accounts, DeFi savings accounts, and the Crypto debit card. Where can we follow you to stay updated? — Ayeley Commodore-M from GAINS

Thank you for having us on today for the AMA! We had a great time and hopefully, your community got to learn more about Nash and our services

To learn more visit our website or follow us on Twitter

— Kellogg from Nash

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

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