Switch to ArdorForum

Hello. We're currently writing a follow-up article to our first report (www.glassboxinvestments.com), which focused on NXT (and the jl777 assets in particular). Thanks to everyone who contributed to this thread about the report: https://nxtforum.org/general-discussion/glassbox-spreading-fud-about-nxt-and-jl777-assets/.

The following questions are part of our effort to paint an even more accurate picture of the NXT investing world. We also hope they'll help spark a healthy dialogue here in the NXT community:

Question #1: Which NXT-based assets are tied to services that are currently operational AND generating revenue? And in the case where a service is bringing in revenue, can investors clearly understand the business model by which this revenue is generated? (For example, Freemarket, which charges a listing fee, appears to have a clearly-defined revenue engine). Also, can this revenue be independently tracked on the blockchain?

The logic here is straightforward: assets that are tied to revenue-generating services are more likely to be legitimate investments. Those that are actually swinging a profit are often even more legitimate.

As we've seen time-and-again in the crypto world, it's all to easy to create an asset out of thin air, pump it full of hype and pretty rainbows, and then dump it for a profit. Revenue generation sends a clear signal that an asset is more likely to be a legitimate investment.

Speculation on the future valuation of non-profitable companies is a perfectly legitimate investment strategy - and it happens all the time in the "real world." Just look at Twitter (TWTR), who lost $175 million last quarter. However, Twitter does have a clear business model and does generate revenue ($361 million in Q3). Although some would argue that it's a colossal time-sink, it's clearly not a hallow shell designed simply to get investors onboard.

Speculative assets that generate NO revenue whatsoever would be riskier. A phantom service, built simply for a pump-and-dump, would be very likely to fall into this category.

This is not to say that ALL non-revenue-generating assets are pump-and-dumps; much like successful crowdfunding efforts, some are wonderful ideas that require funding to be fully realized. But again, revenue generation sends a clear signal about legitimacy.

To put it another way: imagine if Glassbox itself issued an asset tomorrow, along with glowing projections for the future. As of today we've released one report and have no quantifiable user base. The risk of investing in us would be quite high. On the other hand, if we had 1000 subscribers at $10/month each, along with a track record for rapid growth, the risk of investing in us being a pump-and-dump would be notably less.

Question #2: Where can prospective investors find clear, verifiable, and unbiased information on NXT assets?

As we noted in our report, a great deal of information on NXT-based assets is buried in the forum threads. It would be helpful if one could easily find, in one spot, accurate and easy-to-understand information about an asset's:

- Business Model
- Operational status
- Revenue (if applicable)
- Creator(s)
- Community Ratings

Question #3: What questions do YOU think we should ask in an effort to assign an asset's risk level?

This query is more of an effort to help us - Glassbox - build a better service. Questions we currently ask include:

- Is the service tied to this asset live and functioning?
- Is the service tied to this asset generating revenue? (as discussed above)
- Do the creators of the asset provide clear, accurate information and/or prospectuses? ( as discussed above)
- Are the project developers known, or anonymous? (as discussed in our first report)
- What is the developer's reputation in the community?
- Is the asset account/address of its creator(s) public? And if so, is there a "hold" on these funds so they creators can't sell out until a certain time has passed?

While a yes/no to any of these individual questions does not mean an asset is legitimate or not, in the aggregate they can provide a much clearer sense of risk.

Are we missing anything here? What would you add to this list?

Your thoughts and insights are greatly appreciated. In terms of assets, NXT is hands-down the busiest crypto 2.0 platform. As such, it's a great place to dig deep and start exploring these questions.