Home » Cryptocurrency » NEO announces investment in Blockchain’s largest DEX, Switcheo

NEO announces investment in Blockchain’s largest DEX, Switcheo

Ali Raza
  • January 15th 2020, 09:52
  • NEO recently announced that it made an investment into its ecosystem's biggest DEX, Switcheo.
  • The invested amount was not disclosed, but Switcheo announced a number of pending changes and improvements.
  • So far, Switcheo remains the largest DEX on the NEO ecosystem, with its closest competitor seeing only 1/20 of Switcheo's daily volumes.

Cryptocurrency project NEO announced yesterday, January 14th, that it had made an investment in the Blockchain’s largest DEX. According to what is known, the project made an investment via the NEO EcoBoost program, which is a funding effort within its ecosystem that was created by NEO in collaboration with several of its partners.

So far, NEO did not reveal the size of the investment in the project, but it did dedicate around $100 million for its EcoBoost program, in total.

Details about Switcheo

As some may know, Switcheo is NEO’s first and largest DEX (Decentralized Exchange), which went live back in 2018. It quickly attracted attention due to its ability to provide quick and simple token swaps. However, the DEX mostly supports tokens based on three blockchains — Ethereum, EOS, and NEO itself. In other words, it does not support most major coins that investors may be interested in.

With NEO investing in the DEX, Switcheo might soon see some highly beneficial changes. The project has already announced some improvements that will come in the near future, such as the ability to use NEO GAS for paying trading fees. Until now, the DEX offered its own, SWTH token for such payments.

However, since GAS is more distributed than SWTH, NEO felt that this move would be an improvement that would help its users find the exchange more accessible. The investment will also be used for other developments later on, as Switcheo’s CEO, Ivan Poon, hinted that there are a few other projects planned for the future.

For now, NEO’s ecosystem still remains small, and it only features a few DEXes. One of them, known as Aphelion, even closed down shop in 2019. Another DEX, called Nash, is the second-largest within NEO’s ecosystem, and it only sees a fraction of Switcheo’s volumes ($160,000 per day).

Simply put, there is not that much demand for NEO DEXes since cryptocurrencies made on its blockchain are mostly traded on major centralized exchanges, where they see multiple trading pairs and enjoy greater liquidity.

About the author

Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.