Blockchain Investor Analysis

Synthetix Network Token

SNX
Current Price $5.50 (+6.99%)
The Synthetix Network Token (SNX) - originally called Havven - is a decentralized finance (DeFi) project that enables blockchain-savvy individuals to trade and invest in synthetic digital assets on-chain in a peer-to-peer manner. The SNX token is required to trade synthetic assets on the Synthetix trading platform.

Our Rating:

Market

Problem that it solves

Synthetix is a decentralized finance platform built to allow for the development and trading of synthetic assets on a peer-to-peer basis.

Customers

Blockchain-savvy traders and investors who want to gain exposure to different asset classes in digital form.

Value creation

Synthetix creates value by tracking the value of real world assets through their digital equivalent. Moreover, it is decentralized and transparency as transaction take place on-chain.

Market structure

While DeFi a fairly new market in the world of blockchain, there is plenty of opportunity and value yet to be realized.

Market size

While the DeFi market is still small, there is an enormous amount of potential in the DeFi market.

Regulatory risks

The DeFi market could go under regulatory scrutiny as it is a threat to the existing financial system.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

SNX is built on the Ethereum blockchain.

Lead time advantage

Synthetix is one of the first DeFi investment platforms and, therefore, has some lead time advantage.

Contacts and networks

The names on the Synthetix project may not be as prominent as other players in the industry, but they still have access to others within the market.

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Management Team

Entrepreneurial Team

The team has plenty of success including experience with MongoDB and JP Morgan.

Industry/technical experience

The project itself launched in 2017 as Havven. With three years under their belts, the core Synthetix team has the hours necessary to meet this requirement.

Integrity

To date the team has shown transparency and honest within the project.

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Token Mechanics

Token required

Synthetix tokens are used in the Synthetic ecosystem to trade and stake (to collect fees.) However, these roles could arguably also be filled by another token.

Value added

SNX is a fairly standard utility token that you find in comparable blockchain ventures.

Decentralized

Synthetix is designing its platform to be entirely decentralized.

Token supply

SNX is a deflationary token with tokens expected to be added until 2023.

Public exchange

While Synthetix is listed on a few more popular exchanges, some of the higher quality platforms do not have the token available for trading.

MVP

Synthetix is live and is already gaining a user base.

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User Adoption

Technical difficulty

Like blockchain, decentralized finance can be challenging to understand. The project will attract those interested in finance and how to manage digital assets through a single platform.

Halo Effect

Synthetix has formed several partnerships, but has yet to find ones that define the platform.

Buzz

The project has a decent following, but isn't quite as strong as other DeFi players in the market.

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Overall Score

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Blockchain Investor Analysis

Synthetix Network Token (SNX) is targeted at investors who want to trade synthetic assets on the Ethereum blockchain in a decentralized manner. The SNX token has benefit from the boom in the DeFi market but its value is closely tied to the success of the Synthetix platform. The success or failure of Synthetix will arguably drive the token's value more than user adoption, buzz or exchange liquidity.

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