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.