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ICO Analysis: REX

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With recent advances in peer-to-peer data distribution and blockchain technology, Rex will provide universal access to real estate information and streamline the transaction process.

As the author has been saying all week, when industries are disrupted, money is made, and whoever manages to disrupt the liquid asset world is going to be a long-and-short-term winner. However, whoever does that could turn out to be a large conglomerate of smaller efforts. Specialization did not emerge in our capitalist economies by mistake. Thus, we will continue to have a higher burden of proof for firms which claim they will disrupt the whole assets market, but pay particular attention to specialized efforts – like REX and Propy, who are essentially in very congruent markets. Propy’s drawbacks were as follows:

  • Relying on governments and regulators to eventually choose Propy as the default platform. -3
  • Cronyism creates impossible competition in various places, displacing Propy significantly enough to lower the token’s value. -0.5
  • Unlikely to have real-world value in the short-term. -0.25
  • HUGE AMOUNT OF TOKENS NOT ON MARKET IMMEDIATELY. -0.25

Rex takes a different approach to real estate disruption. Instead of betting on the lethargic hands of state actors, they want to decentralize the listings data racket, a racket which many of us in everyday life were previously unaware of. Rex outlines the cronyism in the following passage from the whitepaper, which is published on Github, meaning that its changes are publicly trackable via Git commitments.

Common complaints amongst users include a lack of price transparency, user experience, and dated information. The MLS’ limit the amount of data a “non subscriber” can view.

As whitepapers go, it’s actually good reading, so for best practices, the author encourages people to give it a look. Essentially what we’re talking about is building a Wikipedia-style platform which allows contributors to derive profit from their listing information instead of allowing a single entity to profit from such information that belongs to many other people.

Rex provides a new type of multiple listing service where data is universal and interoperable with other systems. The raw database is decentralized and owned by the listees. Value to the user beyond ownership and control is a reward system that compensates users in REX tokens for participating in the network.

Like all the best disruption efforts, Rex still allows the legacy actors a place to operate. They may even have a huge advantage on the new platform since they already have access to so much data. The reader may wonder who needs the data, and the answer is that real estate brokers use the data. We should clarify that we’re not talking about real estate agents. The difference is mainly a legal one: in some jurisdictions, an agent must be employed by a broker, and brokers must have college degrees and significantly more government certification. Rex intends act as a Wiki-style all-encompassing data hub for real estate brokers around the globe.

On Rex, the user owns the data and are compensated for their contributions: The more listings a user publishes, the more rewards they earn. The more listings on Rex, the more eyeballs. The more eyeballs the more demand for the REX token. Value is driven from listees and they are the beneficiaries. In addition, users can sell and exchange data, such as market studies, inspection reports and advertising space. Finally, a listees exposure will go from local to global. Rex is one large homogenous database that is not bound by countries or borders.

On a last note as the overview goes, Rex does eventually want to tokenize properties, but that’s not their primary goal, nor does their project fail if they cannot reach that goal, and they only intend it to be in the US and Australia. Their plans in this regard feel more solid and seem fully cognizant of the perils that await them in the halls of the regulators. They’re focusing on two jurisdictions, which increases the chances of succeeding at actually getting the thing greenlit by governments. Moreover, they are also inching in by focusing on lease transactions first, which have significantly less regulation than do sales.

This is to say that while RexDex at first will just be a free-to-read database of real estate listings, it could eventually perform the functions that Propy and others intend to perform.

REX Token

The REX token is used to reward those who contribute listing data to the RexDex. Without any more information, it sounds like a no-go, since there’s nor revenue model up front:

Rex’s database will be free and accessible to anyone with a computer and internet connection. In order to be eligible for the listing reward, the user is required to register with Rex. The registration process includes the submission of a user’s name, contact details, firm (if applicable) and real estate license (if applicable). Once registered, the user can start submitting listings and be eligible for the reward. The listing will publish immediately with a 2-week time delay for the listing reward. During the 2-week time delay other users have the opportunity to flag the listing as spam. If the listing is flagged, both users will enter an arbitration period. The winner of the arbitration period will receive the listing reward. The user found gaming the listing rewards contract will lose their verification status and no longer be eligible for further rewards.

Here we see that the token will have some utility, but now we’re approaching a problem that many ICOs face: the token’s value appears dependent on people actually using the nascent product. Brokers would purchase the tokens to verify listings in the manner outlined above, so that they would be working with good data, and ultimately their data would be more verifiable than the competing players, but the whole thing would seem more promising if there were an access fee. We’re talking about professional data, and the market is already paying for this data, so why should we not continue to charge? There’s a lot of room to charge less, especially since the entire process will be automated and decentralized and crowdsourced, but charging nothing is probably a bad idea.

There is also the psychological concept of value in data. Wikipedia is perceived as less valuable information because it is crowdsourced, despite the many Ph.d’s and experts who contribute to its pages, and despite its dedicated community of fact-checkers and editors. Many professional organizations still do not allow citations from Wikipedia, and we can easily foresee various professional broker organizations, in concert with the MLSs they work with (for whatever reason, cronyism being chief), discouraging use of the “free data platform.”

So what we’re left with for a value proposition in the REX token is that it will be valuable to the people who use the platform, and later on it will be value when actual transactions begin to take place on the platform. That’s where the rubber will actually meet the road, and much like Propy, it will be a delicate situation because it relies on many unpredictable human participants.

Distribution

Probably one of the things grinding the gears of this ICO is their complicated token purchase group scheme.

As you can see, only half the tokens are going up for sale to the public. This is problematic, as always, for obvious reasons of accountability.

Notably, in “Pool B,” we see that the listing reward scheme outlined above is paid for. Presumably the company will eventually have to buy tokens back from the market to keep the program going, but now at least we can see a workable future.

Pool C is a bit mysterious. We can’t let it pass: 5% to an “angel investor.” The angel investor is only noted once in the whitepaper. We’re going to guess it’s King himself or his father. We suppose the reader should be very aware of this reality: a 5% negative possibility exists at all times if a single, positioned person decides to move. This is still a better situation than you would have in some ICOs.

Yet, there is an additional 10% that’s in the wind, too:

Pool E consisting of 7% of the Total REX Token Supply. Pool E will be allocated to partners and/or advisors of the REX Project, as well as to participants of Bounty campaigns.

Pool F consisting 3% of the Total REX Token Supply. Pool F will be allocated to corporate affiliates.

They have a compensation pool for employees. Again, if employees were paid strictly in these tokens, or negotiated for the tokens, then the company would be forced to purchase more down the road. This implicit later demand is important.

We suppose the token distribution could be viewed as a way for them to have some runway to build the platform and get going, but they may be asking for a bit too much in this regard.

REX Team

Principal and co-originator/founder Stephen King is the real deal, and he is not to be confused with the horror fiction writer from Maine. Stephen King of New Jersey’s “recent sales are in excess of twenty-five million dollars and include a CVS Pharmacy in Passaic, historic office building at Carnegie Center and a 40,000/SF building in Ewing.” In a 2015 profile about him by a local circular, writer Michele Alperin said of him:

Stephen, one of King’s six children and the only one to follow in his father’s professional footsteps, learned the ropes of commercial sales from Bill Barish at Commercial Property Network. Now on board with his dad, one of Stephen’s first successes was brokering the sale of the Stone House, which sits close to Route 1 just south of the Hyatt Regency on the first 79 acres that his father acquired to develop Carnegie Center.

Other co-founder Russell McLernon is a “technology strategist” (which is probably a real thing in big companies) who claims there is “no software development or integration challenge he can’t handle.” This is good, since there will be plenty of challenges in securely swapping properties across oceans. McLernon will apparently be in charge of gathering the technical staff necessary, which is a chore on its own, especially regarding security.

In keeping with their gradual approach to the ordeal, the pair have yet to hire anyone officially to work on the project. This is not viewed as a drawback, but it could turn into a setback when it comes time to execute.

Verdict

Better than Propy, better than LAT, maybe not the Highlander of real estate ICOs. Much remains to be seen in terms of how valuable the proposed database will be. Building a better mousetrap instead of trying to exterminate the world’s mice (the Propy approach – government integration) is definitely a better strategy. Overall, positive on REX, but funding so far has not been thrilling, thus it may have to find more funding later if they decide to proceed.

Risk

  • The cronyists this will disrupt have all the levers currently, and could negatively campaign against its usage, crippling adoption for a long time. This can be seen as an act of God, in a sense, since there is no way to know how many MLSs will simply decide to use the database instead of fight it. -0.5
  • Failing to charge for access to the data in the same way that current MLS designs do is only acceptable if you’re sure you’re going to be able to build the tokenization of real assets, the “phase 3” of your mission. We’re not prepared to say we’re sure, so instead we deduct another 3 points on these grounds. The token must generate money or it is just a token of appreciation.

Growth Potential

  • Excellent credentials in the founding parties. Well-connected, financed, prepared for success, and unlikely to burn out. It’s not often we see someone in ICO teams who doesn’t need to be there – someone who could just rest on their laurels and wealth. When we do see this, we take note, because such people are much more motivated by their mission than they are by the desire for more wealth, by comparison at least, from a high level view. +3.75
  • The strategic and building approach to creating this product is important. We often see that ICOs seem to assume the world is just going to conform to their desires. In Rex we see that they are aware it will take a lot of doing to operate legally, it’s not something you can write off with a single sentence such as “liability is on the token offerer.” +3
  • Building a better mousetrap (see summary above). +2

Disposition

The author believes this one can win in the long-game. The reader is welcome to run down any doubts they may have, but we feel that even if this project fails to fund completely, it will build up to something very worth your money. We come to a 5.25 numerical rating.

Investment Details

Everyone has another 4 days to review this ICO and make a decision on it. The author would like to educate himself a bit more on the real estate broker world before personally pulling the trigger, but those with more education on the subject are encouraged to offer insights in the comments section. The token address is listed in the Github whitepaper:

Keep note of this. Cybersecurity bad guys are more clever than ever.

More information is available at http://rexmls.com/tokensale.html.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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Analysis

Crypto Update: Monday Selloff Drags Majors Lower

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The cryptocurrency continues to show mixed short-term signs following last week’s Ethereum-led bounce, and the subsequent consolidation. Today, all of the majors sold off after the US open, triggering downgrades in our trend model, but the two largest coins, barely, retained their short-term buy signals, holding up above key support levels.

Ethereum remained north of $200, while Bitcoin is still above the $6275 level, but the total value of the market is back at $195 billion as BTC failed to gain ground during last week’s rebound, and as several coins failed to join the move. The odds of a failed rally got higher after today’s selloff, and the move still only qualifies as a counter-trend one, with the long-term downtrends being in no danger in most cases.

XMR/USD, 4-Hour Chart Analysis

Monro, which has been the third major on a short-term buy signal, is also still positive in our model, despite bouncing lower off the $120-$125 resistance zone and getting close to testing the $108 support level. The coin is now trading slightly below the rising short-term trendline and it would need to show strength quickly to retain stay on a buy signal. Further support is found near $100, while key long-term resistance is ahead at $150.

ETH/USD, 4-Hour Chart Analysis

Ethereum fell back to the $200-$205 support zone today, and the coin is trying to establish a swing low, following the initial rally of its 15-month low. Despite the pullback, ETH is still on a short-term buy signal, but given the segment-wide long-term weakness, traders should still not enter full positions. A sustained move below $200 would warn of a test of the lows and a possible new leg lower, with strong resistance still ahead at $235 and $260 and with further support found at $180.

Market Still Lacking Sustained Strength

BTC/USD, 4-Hour Chart Analysis

Bitcoin fell back to $6275 again after failing to show bullish momentum last week, and although BTC is still trading with relatively low volatility, well above the crucial support zone near $5850, the recent days are not positive for crypto-bulls. A sustained move below primary support would warn of a test of the weaker support near $6000 and a likely move to the key long-term zone, with resistance levels now ahead at $6500, $6750, and $7000.

XRP/USDT, 4-Hour Chart Analysis

Ripple’s weakness is also a warning sign for bulls, as the third largest coin not just failed to join the rally last week, but it turned lower today, threatening with another move towards the August lows. XRP is still trading within its short-term range, and it remains on a neutral short-term signal, but further weakness could quickly trigger a sell signal. Support below $0.26 is found near $0.23, while resistance is ahead at $0.30, $0.3130, and $0.32.

EOS/USD, 4-Hour Chart Analysis

EOS also remained weak during the recent altcoin bounce and now it is back on a short-term sell signal after dipping lower together with the broader market, plunging below $5 yet again. Now, a test of the August lows and a move to $4 is once again the most likely, with only the support between $4.55 and $4.65 found above the August low, while strong resistance is ahead between $5.35 and $5.55.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 347 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Crypto Update: Downtrend Looms for Binance Coin

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Binance Coin/Bitcoin (BNB/BTC) is one of the few altcoins that’s in the green this year. The pair is up by over 145% year-to-date. The gains can be shocking, especially if you consider that most crypto pairs are down by 70% – 90%. That’s because BNB/BTC has been known to move against the general cryptocurrency market trend. The pair rose just as many popular altcoins started to plummet.

Recently, however, we’ve seen a good number of altcoins show bullish signals. If BNB/BTC counters the overall trend, then could it be possible that it is in danger of becoming bearish? In this article, we show how a major shift in the trend looms for Binance Coin.

Presence of Bearish Divergence

Seasoned traders know that a bearish divergence is a sell signal. It indicates that the market has lost its upward momentum. Thus, it would be difficult to sustain the ascent even if prices continue to rise. Without momentum, the market is in danger of reversing its trend.

Pull up the weekly chart of BNB/BTC and you’ll see a bearish divergence on the weekly chart.

Weekly chart of BNB/BTC

BNB/BTC managed to climb even though momentum was dissipating. Switch to the daily chart and you’ll see an even larger bearish divergence.

This indicator is telling us not to buy the recent dip. Chances are the uptrend is already over.

Emergence of a Reversal Pattern

On top of a bearish divergence, BNB/BTC is forming a head and shoulders reversal pattern on the daily chart. This is further evidence that upward momentum is disappearing. The lower high of 0.0019999 that the market generated on August 09, 2018 is a sign of weakness. This means that demand has significantly decreased.

Daily chart of BNB/BTC

Currently, BNB/BTC is struggling to stay on top of 0.0014 support. In addition, technical indicators show that a breach is on the horizon. Volume has been thin even though the market is just above the support. Also, the daily RSI has been generating a series of lower highs.

Without volume and momentum, BNB/BTC is at risk of triggering the reversal pattern.

Entrance into Bear Territory  

Technical analysts have different definitions of a bear market. One of the most common definitions used is an asset enters bear territory once it drops by 20% from its recent high. That’s because in a bull market, participants would consider a 10% – 15% dip as an opportunity to bargain hunt. With strong optimism, markets tend to bounce and resume the uptrend.

A 20% fall from the recent high generally means that participants are no longer optimistic about the market’s outlook. They are not racing to place long positions even though prices have significantly dropped because traders are afraid. We’re seeing this dynamic in BNB/BTC.

Fibonacci levels of BNB/BTC

BNB/BTC is hovering just above the 50% Fibonacci level. That means that the market has lost close to 50% of its value from the recent high of 0.0026555. Yet, buyers are scarce. When a significant number of participants realize that demand is not going to be as strong as it used to, they will very likely dump their positions. That should ignite the downtrend.  

Bottom Line

Binance Coin may be in the green this year but it appears that change is coming. With many popular altcoins showing signs of life, BNB/BTC is revealing reversal signals. These include the presence of a bearish divergence, the emergence of a head and shoulders pattern, and the entrance and stay in bear territory.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.6 stars on average, based on 234 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Analysis

Pre-Market: China Bear Market Deepens as Shares Hit 4-Year Lows

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Global stocks and other risk assets started the week with slight losses so far, and the recently weak segments continue to struggle, while US markets are still acting relatively strong, suggesting the continuation of the recent trends. European markets are among the weaker ones again, even after last week’s bounce, with the major benchmarks all being around 10% off their highs, in stark contrast with their US peers.

Shanghai Composite, 4-Hour Chart Analysis

With all eyes on the second round of US tariffs directed to China, it’s no surprise that the pressure on the Shanghai Composite didn’t ease yet, and the benchmark slid to yet another almost 4-year low this morning. The Chinese Yuan is holding on well in the meantime, with the August low being in no danger, as of now.

USD/TRY (Turkish Lira), 4-Hour Chart Analysis

That said, emerging market currencies are back in the crosshairs, with Argentinean Peso, the Brazilian Real, and the Turkish Lira all drifting in early trading.  The Lira, which got a boost from the emergency 6% rate hike by the local central bank last week, is headed towards pre-rate hike levels, and that doesn’t bode well for the coming weeks with regards to Turkish and other emerging market assets.

Dow Futures, 4-Hour Chart Analysis

Economic releases will be few and far between this week compared to last week’s busy calendar, and today, only the Empire State Manufacturing Index made some waves, missing the consensus estimate, and suggesting a slowdown in the recently well-performing US segment. The final CPI in the Eurozone didn’t cause any surprises, coming in at the originally reported 2.0% annualized rate. The Dow, the Nasdaq, and the S&P 500 all opened slight below Friday’s levels after the releases, but the more interesting moves are in Forex markets.

Dollar Declines Against Majors as Commodities Mixed

DXY, 4-Hour Chart Analysis

After Friday’s bounce, the Dollar couldn’t maintain its momentum and today, the reserve currency is lower against most of its global peers, with the Dollar index sliding towards its July lows. With the Fed’s next rate hike just around the corner, the current move is more the product of Mario Draghi’s inflation warning, which is pushing the Euro higher since Thursday’s ECB meeting.

From a longer-term perspective, the Dollar’s strength could be undermined by the Trump administration’s pro-cyclical fiscal expansion, at least against the majors, but until the US economy keeps on booming, we expect bulls to be in control of the Greenback’s market.

Gold, 4-Hour Chart Analysis

Commodities are trading without a clear direction today, with copper following Chinese stocks lower, maintaining the strong correlation, while gold and crude oil are slightly higher. The WTI crude contract is edging towards the $70 per barrel price level again, still trading within a narrowing range, while the main precious metal is also stuck near the $1200 level following a four-month-long decline.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 347 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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