So what is NAGA coin (NGC)?
And is it legit?
With big plans for a multi-asset trading exchange, they have an interesting business model.
But there’s still a few problems I can see in the project.
So in this NAGA coin review, we’ll look at everything you need to know about NGC cryptocurrency.
1. What Is NAGA Coin?
NAGA’s mission is basically to make trading financial and digital assets more transparent, convenient and accessible.
Of course, that’s all in theory (see my list of NGC pros vs cons later).
They’re trying to create a one-stop solution for trading any type of financial or digital asset.
Examples of financial and digital assets you can trade include cryptocurrency, gold and stocks.
So instead of logging into all of your accounts, you’d have one central place to trade from.
That means you’d no longer need to check your stocks account, then check your commodities account and finally, log into your crypto exchange.
NAGA would basically store all of your trading data in one place on their platform.
1.1. What Is NAGA’s Use Case?
Trading platforms like eToro for example, do the same thing as NAGA but without the token.
So you might be wondering why does NAGA require a cryptocurrency token to use it’s network?
Well, NAGA states they’ve launched NGC coin because their blockchain technology will help grow the platform’s community.
Here’s a few reasons why:
- They’re eliminating the need for a bank – and therefore, trading can become more accessible.
- There’s no third party involvement for transactions.
- Instead your trading balance is stored in a NAGA wallet, which only you have access to.
- NAGA was created from the Ethereum blockchain. Their exchange uses smart contracts to trade.
- Your total profit and loss is calculated via smart contracts too.
- So essentially, GNC token is the fuel that keeps their platform running.
1.2. Key Features
NAGA comes with 5 key features to their trading platform.
So rather than just being an exchange, they’d also offer extra tools to attract more customers and grow their tokens adoption.
Here’s their key features.
1. Learning Academy:
Where traders can access online videos and tutorials to learn more about trading.
Obviously, trading any type of digital asset isn’t easy – and it requires a bit of knowledge.
That’s where the academy comes in.
This feature could help to attract newbie traders who want to test their skills before they begin trading.
2. Social Network:
As a trader, social networks are a great place to share knowledge, contribute analyses and bounce ideas off each other.
We’ve already seen this on social media platforms like Reddit and Facebook.
NAGA allows traders to do all of this in-house, via their exchange.
It’s a featured designed to create more loyalty and increase the value of joining their community.
3. Robot Trading:
So when you’re trading, the biggest mistake you can make is investing with emotion rather than logic.
It’s also challenging and time consuming to analyse digital assets – in terms of their future movements, trends and support/resistance lines.
Robot trading is an increasingly common technique that solves most of the above.
As reported in their whitepaper, with NAGA’s wallet, you won’t need a bank account.
So you can trade online without any third party interfering with your trades.
But of course, NAGA will charge fees for using their platform.
One thing I couldn’t work out from their whitepaper though is how are people supposed to buy tokens in the first place?
Because unless you purchase tokens offline, at some point you’d need a digital bank account to transfer money.
The main featured of NAGA is their trading exchange.
On this platform you’ll be able trade across most major markets – such as stocks, commodities and 1,200 different cryptocurrencies.
1.3. Exchange Fees
NAGA’s trading platform uses a similar loyalty model to major cryptocurrency exchanges like Binance.
One of the biggest perks of using NAGA coin is their exchange fees discount.
You see, it’s quite common for cryptocurrency exchanges to offer exchange fee discounts for trading with their tokens.
NGC users will pay 50% less in exchange fees – compared to normal fiat (traditional currency) users.
This means that if you trade with NAGA, rather than fiat, you’ll save money on the exchange.
That discount applies every time you buy/sell a digital asset.
The other benefit of using NAGA tokens is their cashback model.
Let’s say you open an account and invest $100.
With every trade you make, you’d get an estimated 0.01% to 0.05% cashback.
Finally, if you openly share your trades on their social media network, you’ll also be awarded credits.
So you’ll get cashback and sharing credits whilst using the platform.
This will also increase your rankings on the platform.
So what’s their strategy behind this incentive?
Obviously, people are only going to use a token if there’s a benefit.
So these reduced exchange fees create a strong incentive for more people to adopt the token.
This creates an eco-system of trading within the NAGA network.
Therefore the more NAGA tokens are traded and the more active their community, the more value their tokens offer.
And so the benefits listed above could therefore grow their community.
1.4. Loyalty Scheme
In addition to exchange fee discounts, cashback and double crediting, they’ll also reward users for holding NAGA tokens.
This means the exchange will favour NGC coin holders over fiat users.
It’s a way to increase adoption, drive more brand loyalty and grow their community.
This loyalty scheme is incentivised via their social media network, NAGA Trader.
Here’s some of the other benefits token holders will get vs fiat users:
Rankings: Token holders will rank higher than other users on their social media network.
So that means they’ll get more exposure and grow their followers faster.
It’s kind of like Twitter for example.
The more followers you have, the more status, following and recognition you’ll get as a trader.
Groups: NAGA coin holders will get access to exclusive, closed groups shared with other NGC coin holders.
This is just like how when you buy an online course, you usually get access to an exclusive Facebook group.
And in these token holder groups, you’ll get exclusive knowledge and support from the NAGA coin community.
Educational and learning materials will be specifically created for NGC traders.
Premium content and new games on the platform will be made available to NAGA coin holders.
Online Trading Academy Courses:
You’ll also get free access to their NAGA Academy courses and online trading courses.
2. What Problem Does NAGA Coin Solve?
Well, mainly they’ve identified three key problems in the financial sector.
Here’s an analysis of each.
2.1. The Unbanked.
Did you know that two billion people can’t access the financial sector?
You see, if you want to trade any sort of financial asset, you need a bank.
That means you have to go through a third party, and therefore the process isn’t decentralized.
The problem is, a large fraction of the world doesn’t have a bank account.
So they can’t trade anything.
This demographic is known as ‘the unbanked’.
And you’d be surprised how few people actually have a bank account, especially if you were to analyse developing regions of the world.
NAGA is creating a platform where you wouldn’t need a bank to trade.
Instead you could just use your cryptocurrency wallet address (which anyone can create online).
Therefore, trading would open up to the world’s unbanked.
2.2. Security And The Storage Of Data
If you want access to all trading markets – commodoties, cryptocurrency and stocks in one place – your options are very limited.
Especially for platforms that work effectively.
eToro is one of the main alternatives, but they charge hefty fees and have a limited selection of cryptocurrencies to trade.
NAGA is aiming to become the exchange of choice for trading all of these markets in one place.
2.3. Costs & Misleading Fees
If you’ve ever traded stocks, you’ve probably seen the almost endless number of fees you get charged.
That’s because every party is taking a slice.
Your bank has currency fees. You have to pay taxes on your stocks. The exchange charges for their services etc.
Basically, the whole process lacks transparency.
It’s hard to understand why and how much profit you could potentially make, because these fees are only revealed after you’ve made a purchase.
NAGA aims to create a trading platform where it’s easy to understand how much you’re really getting charged when you trade.
3. Investing In NAGA
3.1. Why Should You Invest In NAGA?
So why would you invest?
3.2. Cons Of NAGA Coin
So NAGA coin does have a few disadvantages – including:
4. Is NAGA Coin A Scam Or Legit?
So is NAGA legit? And can you trust in their expertise?
Well, with any cryptocurrency there’s risks.
Companies developing blockchain projects are notoriously unregulated.
However, here’s a few reasons why NAGA may be a legitimate project:
NAGA are already listed on the Frankfurt Stock Exchange.
That’s not an easy task – because stock exchanges usually have strict regulations for the companies they publicly list.
Audits And Licensing:
Stock exchanges are very different to cryptocurrency exchanges, where almost anyone can join.
That means they will have been audited rigorously – including their financial details, team, operations and everything else.
The company already has a team of 120 employees, so this isn’t just a bunch of developers who decided to start an ICO overnight.
They’re established and have a history of trading on the stock exchange.
They also have EU-regulated financial licences, like an asset management licence.
5. The History Of NAGA
5.1. NAGA Group
This cryptocurrency is part of the NAGA Group, a company from Germany.
They’re already employing over 120 people and their company is listed on the Frankfurt Stock Exchange.
The NGC token ICO was held between 1st to 15th December 2017, raising $45,000,000 in crowdsales.
NAGA coins were sold at a rate of $1 to 1 NGC.
You can find NAGA’s current price here.
6. NAGA Coin Predictions
6.1. NAGA Coin Price Prediction
In terms of a price prediction, I can’t see NAGA coin’s price rising significantly over 2018.
With the state of the cryptocurrency market, times are tough.
Plus, cryptocurrency exchanges will face stricter regulations too.
So what could affect NGC’s price in the future?
Let’s analyse each factor.
6.2. User Adoption
The key to this cryptocurrency’s success is user adoption.
If no one adopts their trading platform, they’ll struggle to compete.
That’s why they’ve created the token benefits scheme I’ve mentioned earlier.
So to increase adoption of NAGA coin, their marketing strategy is to offer:
- Loyalty rewards
- Exchange fee discounts
- Exclusive content
- Social Media platforms to share knowledge and trades
- Referral scheme rewards
If you look at the success of tokens like Binance Coin and their millions of users, then you can see the potential of their platform.
But you need to understand that this business model really requires thousands of users before it can become anywhere near profitable.
Exchange fees are often minimal.
Like 0.1-0.5% of a trade’s price maximum.
I’ll analyse their competition next, but in summary I can’t see how NAGA will reach so many users.
And also, if they hit hundreds of thousands of users, they’ll need the technology to scale up.
If thousands are people are using the network, it can lead to slow transactions plus higher loading speeds.
6.3. Cryptocurrency Market Confidence
As we all know, 2018 hasn’t been a great year for cryptocurrency so far.
Markets have crashed. Prices have dropped by 60-80%. And the whole industry has taken a pounding.
That hurts the future of NAGA in a few ways:
- Less Demand: If there’s less investor confidence in the market, there’s less demand for trading platforms too.
- Less Market Cap: The cryptocurrency market’s total capitalization (the amount of money invested in the market) has fallen by over 50%.
- Less Money: There’s less money in the market now – which means less opportunities for the platform to grow.
Cryptocurrency markets can pick up very quickly.
And just a little momentum could allow the industry to grow just like in did back in December 2017.
But that will take time and a huge shift in investor confidence.
6.4. The NAGA Team
The NAGA group is creating this token.
That’s both a good and a bad thing.
The advantages of having their backing:
Here’s the cons:
6.5. Ethereum Network Fees
So here’s another problem.
You see, NAGA is an Ethereum token.
And we all know that Ethereum’s ERC20 tokens struggle to handle thousands of transactions at once.
Cryptocurrency technology is a little temperamental – because exchanges often crash and suffer from latency issues.
So if you have a whole platform reliant on cryptocurrency technology, and it doesn’t, there’s a lot of room for errors.
And bare in mind that cryptocurrency prices change second by second.
So if you can’t trade in real time because the network is too slow, the platform is going to be rendered useless.
Here’s an example:
When thousands of people were using CryptoKitties (another Ethereum based project), the whole network came to a halt.
Plus network mining fees (GAS) soared – meaning transactions became a lot more expensive.
If that happens to NAGA, they’ll lose a lot of users.
Plus it will damage their reputation.
It’s undeniable, NAGA face a lot of competition.
And I honestly don’t see why thousands of customers would switch to NGC’s trading platform.
Because they’re not just competing against cryptocurrency exchanges, they’re also competing in the stock trading and commodoties markets too.
So whilst there are millions of customers to target, most of them will already be loyal to their own favoured platform.
For example, there’s an endless list of exchanges to trade stocks, commodoties and cryptocurrencies.
If anything, I’d say too many.
Now NAGA’s argument might be that they’re unique – because you can trade everything in one place.
But just look at their competitors like eToro:
- Exchanges like eToro already do exactly the same as NAGA
- These platforms already have hundreds of thousands of loyal users
- They’re already established and proven to work
- They already have reliable networks that can handle thousands of transactions at once
- And customers are happy with their services – they aren’t crying out for a new platform
So all in all, I can’t see NAGA winning a profitable amount of market share.
It’s just too much of a saturated market.
You also have to factor in the countless number of cryptocurrency exchanges that have been hacked.
Security is a problem that hasn’t been solved yet in the trading world.
That’s why most long-term traders store their cryptocurrency tokens in hardware wallets, rather than leaving them in an exchange.
You see, cryptocurrency exchange hacks happen every single month.
So what makes NAGA’s network secure?
And how can they fight off hackers?
Personally, I wouldn’t trade on a new exchange because I struggle to trust them.
And I’m probably not the only one.
7. NAGA FAQs
7.1. Are NGC Tokens Restricted In Any Countries?
NAGA isn’t available in every country – despite their targets for global expansion.
Restricted countries include:
- Islamic Republic of Israel
- Democratic People’s Republic of Sudan
- Syrian Arab Republic
- United States
7.2. How Can You Buy NAGA Coin?
NAGA is available at most major cryptocurrency exchanges.
This includes Bittrex, HitBC and OKEx.
7.3. Where Can I Find Their Wallet?
You can sign up to their wallet here.
7.4. Where Can I Find The Latest NAGA Coin News?
Here’s a few places to keep up to speed with NGC tokens: