We’ve been in crypto for over half a decade already, and we know all pros and cons of the industry. On the positive side, all the moves are really transparent, thanks to the blockchain technology; the same technology, however, prevents law enforcement and make it hardly possible to impose restrictions the moves and actions.
It comes as no surprise that there have been many scam exits over the course of the short period of crypto existence. Coindesk says a total of $3.1 billion were scammed away from the public which is a very disturbing number even compared to the $32 billion total all time fundraising number compiled by CoinSchedule.
This goes without further explanation that crypto exchanges were always among the biggest risk areas. This is simple — you trust your money to those exchanges, and they are capable of manually stealing those. Or even worse, to be indiscreet enough to let hackers do their job and conduct a theft: these holes allowed $1.5 billion to go to criminals through the history of digital money. This is why it is important to know is Nominex scam or legit.
Actually, there is a way to measure it
When the discussion turns to the question: how do you know the crypto exchange is safe and reliable? The public responds as follows — there are factors that every trader should consider while choosing an online exchange: geographical restrictions, verification requirements, security measures, reputation, customer support, fees, exchange rate, payment methods.
To straighten things up, we sorted everything that matters for the cryptocurrency exchange and ranked these criteria. Just follow the list and make you marks.
Website and content (11%)
Good examples: Binance, Bittrex, Nominex
When it comes to the company’s content policy, the main indicators are very simply: amount, quality and ‘age’. The more quality posts they have, the more they spent on educating their users, the higher are chances these guys are actually aimed at something good.
With a cryptocurrency exchange, it is easy to see if the project did its homework: everything comes clear when you look at the quotation list and the depth of market screens. Speed, convenience and friendly user interface are good signs. Be careful if the ‘exchange’ didn’t lift a finger to arrange its most important element, trading floor.
Nominex spent countless hour prototyping and testing all its features with real experienced users, and we are proud of our product.
Team size, relevance and competences (17%)
Good examples: Next Exchange, Huobi Global, Nominex
We understand it perfectly that you are not capable of actually valuating the team. Is John Johnson good enough as a developer? And what about Debra Smith for marketing and PR? What you can know for sure is that the team of five simply can’t manage a project of this scale and complexity. Trust us on that: you need no less than 20 full time professional to run a crypto exchange.
Nominex is supported and built by a tight bunch of 40+ experienced professionals.
Key members are easy to verify (12%)
Good examples: Gemini, Binance, Nominex
This is simple: you don’t need to be a media personality like Changpeng Zhao or the Winklevoss twins but you and your fellow top managers need to be googlable, have FB and LinkedIn profiles that date back long enough, and yes, be recognized in the flesh-and-bone world.
Nominex CEO, CFO and Chief Experience Officer are listed in the whitepaper, and you can locate their profiles and real life activities easily.
General business agenda and plans (18%)
Good examples: BitMEX, Coinbase, Nominex
Pay attention to any forms of buzzword salads and bullshit bingos. Good cryptocurrency exchange knows where it’s headed and whom it serves. BitMEX is focused on futures, Gemini and Coinbase aim for regulated players, and Nominex states it clearly: it’s main target is the new market called entertrading, i.e. the focus is on B2C, lots of engagement activities.
Transparency, document and legal (14%)
Good examples: Kraken, Coineal, Nominex
This block is easy to quantify. Every reliable crypto exchange has a white paper, or a similar document. In case it is regulated, there is some large selection of SEC/EDGAR forms and such. Looking deeper, pay attention to KYC/AML policies — if those are presented at all, and how well are the documents structured in terms of legal, and even language.
Nominex has the finest set of basic regulative documents presented on its website.
The rest (28%)
There are plenty other things to look at, once you study a crypto exchange. In case you are capable of reading the code, don’t miss a chance to visit Github and check if the project borrowed others’ source code, or even stole any. Financially sophisticated people can keep an eye on tokens distribution and lock-up periods for founders and big buyers. PR and marketing aware analysts shall be watching bot activity in Telegram chats, community health level and share of native mentions in media. We are certain that Nominex numbers for these metrics are in orders, and no red flags are hanging around.
Once any journalist or analyst reviews Nominex, they all conclude that there was tremendous work done. And most observers agree that any sort of scoring would give the exchange the highest rank possible, completely ruling out even the smallest change of it being a scam.