At the close of this fortnight’s episode of the Beyond the Chain podcast Fabio mentions that initially Nash imagined the exchange would be the main driver for user adoption and platform growth, specifically mentioning users running 3 monitors used for day trading. We’re now ~1 year since the launch of the exchange and the consensus from the team seems to be that the most popular component of the platform is the mobile app where users have a high demand for FIAT ramps (Nash Cash) and the ability to make payments (Nash Pay). As neither of these products are live it’s too early to comment on their effectiveness in growing the platform so I’ll leave that for another time, however the potential for the network effects of these two cannot be underestimated.
I’m unsure as to why the exchange itself isn’t seen to be the main driver for growth, comparing to existing successful exchanges might give us some insight into why Nash exchange is yet to become the main driver for platform growth;
Binance : low KYC requirements, liberal number of new token listings, ability to fake trading volume and manipulate price discovery, extensive tether markets, strong focus on China, low barrier to entry (no hassle sending funds from personal account to trading contract)
BitMex : low KYC requirements, first mover advantage for leveraged option trading in the bitcoin space
FTX : low KYC requirements, large variety of options, futures and indexes, generous leverage
Coinbase first mover advantage for FIAT to crypto in the US, simple UI, GDAX acquisition
UniSwap : no KYC requirements, no listing requirements, interoperability with most popular ETH wallets, liquidity mining possibilities
Nash : high KYC requirements, limited trading pairs / high listing requirements, no leverage offered, lack of options futures and indexes, all volume must be genuine on-chain trades, limited market penetration (Canada, New-Zealand, China, Japan, Korea etc…)
As it stands Nash can only really compete with Coinbase once Nash Cash is live (even then Coinbase offers a Visa debit card which isn’t on the roadmap for Nash yet), Nash’s non-custodial nature and off-chain L2 matching engine is the USP/advantage Nash has over the competition however Nash doesn’t yet address the USP’s of competing successful platforms mentioned above.
Nash’s original vision for crypto-crypto trading, crypto-securities trading, prime brokerage tools and inter-exchange is still the correct vision for future growth in my opinion however it looks to me like;
- a broader listing of new and established crypto assets
- options & futures trading
- liquidity mining
- automated trading integrations (Gunbot etc.)
are prerequisites for Nash Exchange to be successful (most of these are either in development already or under consideration). During the podcast Jeff mentions “It’s better to have 1000 users that love your product than 1 million who like it”, for now the first 1000 users that love Nash’s product might be the mobile users waiting on Nash Cash/Pay. However once the more advanced exchange features are live there’s more than 1000 users waiting to love that part of the platform.
Nash Exchange/Cash/Pay ► Trade, Pay, Invest
Ultimately Nash Cash, Pay, Exchange and the Community all feed into each other and help to spin the flywheel. It’s up to us the community to make use of the platform, provide feedback and help onboard new members. I look forward to paying, trading, mining liquidity, saving and investing with everyone here, cant wait to see whats in store for the next instalment of Beyond The Chain.