Nxtcrowd.fund - review
Monday 22 February 2016
Originally conceived as a crowdfunding platform, this service allows you to buy Nxt crypto assets with BTC. I take a look at the service and how easy it is to use.
I’ve been a fan of Nxt since its early days. I love the potential of a 2.0 platform that is not only capable of sending money but can also be used to send encrypted and unencrypted messages; issue, buy and sell crypto-assets and pay dividends; launch whole new currencies secured on the same blockchain; conduct votes; has built-in tokenisation and several forms of account control…
It’s extremely powerful and lends itself to a bewildering array of applications - but therein lies a problem. It’s a diverse toolkit, but it’s not exactly meant to be used as-is, with the basic client as a one-stop-shop. Instead, it provides the building blocks for businesses and developers to create applications and services using its API. Those third-party services have been lacking, but now they’re slowly starting to gain some headway.
Crowdfunding and decentralised Nxt asset sales for bitcoin
Nextcrowd.fund is a deceptively simple service that uses Nxt’s API and neatly sidesteps another minor problem. Nxt’s built-in asset exchange (AE) hosts many dividend-paying cryptostocks, which can be traded for NXT. It’s by far the biggest, most active asset exchange in the crypto world, but the requirement to trade against NXT has a downside. Asset issuers often raise money for their project by selling assets for NXT, which are then sold for BTC or fiat to fund their business. That means there’s sell pressure on NXT itself, and limited funds in circulation (especially after a long bear market).
Nxtcrowd.fund allows you to invest in Nxt assets using bitcoin - or, shortly, fiat. Of course, you can do this anyway, but it involves jumping through a few hoops, transferring funds to an exchange, converting to NXT (or BTC, then NXT, in the case of fiat), withdrawing to your Nxt wallet, then placing a buy order. This makes it fast and seamless. It’s similar to the Shapeshift-like instant exchange also run by the founder, Coinomat, only there are more steps hidden away in the background.
At the moment, it’s relatively basic. You select your asset (assets need to be registered with the service - the AE has had its fair share of scam assets), choose your currency - BTC, LTC or DOGE, and specify a Nxt address for the assets to be sent to. Obviously this requires being set up with a Nxt account, but that’s a straightforward matter and if you don’t want to use the full client you can use a web wallet like mynxt.info.
You’ll be given a rate that’s valid for the next 30 minutes, and the minimum and maximum amount of the asset you can buy. After sending your funds and one confirmation (bitcoin), your assets will be sent automatically to your account.
All in all, it’s pretty neat and the UX is great. Since it’s just starting up, there’s plenty of scope for further features - and as the name suggests, it was originally designed with an eye to crowdfunding. Meanwhile, it should add some much needed liquidity to the Asset Exchange.
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