Ethereum tokens have grown, and there is a problem: even for a good ICO, these digital assets need a mechanism for price discovery. Unfortunately, mainstream exchanges, which can barely keep up with today's current market, would be absolutely overwhelmed by the future market of Ethereum based tokens.
One of the solution is fully decentralized exchanges, relying on a smart contract. The other way is having niche exchanges, which launch through an ICO and use their own token for liquidity.
Joyso comes into a market with established players: Binance and KuCoin, which in a few months managed to draw in many users by judiciously adding booming new digital assets. And now, a new ICO offers to build a similar exchange, but this time, a hybrid exchange allowing some form of decentralization.
What is Joyso?
- Joyso White Paper
- Country of origin: Seychelles/Taiwan
- Ticker: TM-JOY
- ICO Dates: 1-21 March
- Hard Cap:
- Funds raised:
- Industry: Exchange, Cryptocurrency
- Funds accepted: Ethereum
- My Rating: 4/5
Joyso Social Media
Joyso promises to have the best of both worlds when it comes to a fast and fair exchange. Decentralized exchanges have their glitches – Joyso will aim to speed up the order matching process and offer a more user-friendly experience. But the rest of the exchange process would rely on a smart contract. Traditional exchanges can alter the user balance at any time, and hold users' funds in hot or cold wallets, which often become the target of hackers. On a decentralized exchange, the user owns the balances and may withdraw funds at any moment. Centralized exchanges often have arcane rules and high fees for withdrawals.
The user owns the balance on the exchange – no haircuts would be possible, and as in the case of Bitfinex, no lockdowns or wallet maintenance would happen either.
Additionally, Joyso will aim to become a platform for free and immediate listing of ERC-20 tokens, while providing liquidity through the JOY token. The exchange has set out an invitation for all Ethereum-based ICOs to list their token.
Because some of the actions are performed in a centralized manner, this helps to lower gas fees as the blockchain is contacted only for the essential operations.
The Joyso Team
Founded by Tom Soong, who lists himself as CEO, the team is made up of Taiwan-based, as well as US-based experts. The experience of Soong is a typical one for a crypto enthusiast, as he was involved with the Bitcoin Mandarin community on Facebook for a while. At one point, Soong was the CEO of a Scrypt cloud mining company. All of his experience after university is related to blockchain technologies in some way.
Taka Kao, the COO, is an industrial technology engineer. The CTO, Will Hsieh, has experience with several blockchain projects, including GCoin, the DiQi token, and he is heavily involved in the Ethereum community in Taipei. The team seems generally driven by enthusiasm for crypto coins and seems to understand the capabilities and limitations of the Ethereum platform. The roadmap places the challenge of creating a prototype exchange almost right after the ICO is over.
About Joyso JOY Token
The JOY token (also known as TM-JOY) is in a new class of utility tokens, used for adding liquidity to an exchange. Much like Binance Coin and KuCoin Shares, the token allows for lower trading fees, as well as a potential program for rewards by redistributing fees.
Half of the 200 million JOY tokens will be distributed in the crowd sale beginning soon, 25% are reserved for the team, and 25% have been sold in private placements.
The JOY token could be held in a wallet forked from the Gnosis service. This multisig wallet has been used by other decentralized exchanges, including the Bancor service. Experts believe the multisig wallet by Gnosis is immune to the freeze bugs in the Parity wallet.
Investing in Joyso: The Pros
Exchanges are in demand in 2018. The Joyso team itself believes the ICO sector will continue to grow, raising around $300 million per month. This would mean the exchange could host many new tokens and gain from trading fees.
The Joyso ICO benefits from the Taiwan cryptocurrency regulations, where digital assets are seen as commodities, and not money. The exchange will not be handling cash, which means there is low probability it would clash with regulators, who extended oversight to exchanges that have mechanisms to bring fiat on board.
Joyso is also one of the ICOs rated favorably at ICO Bench, and the founding team has passed verification.
— JOYSO (@joyso_io) February 24, 2018
The Risk of Joyso
This ICO is closed for US-based investors, as well as buyers from China. The exchange has promised to freeze attempts to make orders from countries where ICOs are banned. Because Joyso has a centralized element, the project has the power to censor trading.
The other major risk for the project hinges on the smart contract. Hopefully, running the exchange on test net before the launch and having a bug bounty program will spot troubles before customers are affected.
Final Thoughts on Joyso
Joyso is a conflicting opportunity. On one hand, it is yet another chance to repeat the success story of Binance or KuCoin. On the other hand, the project is already banning investors from some of the highest exchange-traffic countries (USA/China)
Because of the verified team and the in-demand idea, this ICO has a 4/5 rating for those who want to get an early start on the exchange, or own the tokens. Exchange tokens are seeing rapid appreciation, and owning TM-JOY means the asset would be instantly usable, as soon as the exchange launches.
Joyso lists its competition among decentralized platforms and projects. But since there is not one recipe for a decentralized exchange, Joyso may have unique advantages. Similar services using smart contracts and decentralization include EtherDelta, Bancor, 0x, Blocknet, IDEX, Kyber Network, and AirSwap. Each of those exchanges has slightly different features and smart contracts. Joyso claims to have optimized gas costs, and will continue to do so, to gain an advantage over the more complex contracts and approaches of competing exchanges.
In case of owning otherwise inactive ERC-20 tokens, participating in the Joyso ICO may mean a chance to join a suitable platform for trading them.
Should YOU Invest?
Honestly, most people looking to invest in altcoins, tokens, and ICOs are hoping they discover the next Bitcoin or Ethereum. The chances of that are rare.
So where is your money best invested? My recommendation might surprise you. It's free to join, and won't require that you invest in risky cryptos!