The Ultimate Due Diligence Report on NEAR Token (NEAR BLOCKCHAIN)

The Ultimate Due Diligence Report on NEAR Token (NEAR BLOCKCHAIN)

1. Executive Summary

Overview of the NEAR token and its unique value proposition.

The NEAR token serves as the primary digital currency of the NEAR Protocol, a cutting-edge blockchain platform tailored for decentralized applications (dApps) and efficient, secure transactions. This token offers various essential functions that enhance its enduring value:

Network Usage Fees: NEAR tokens are utilized for covering transaction costs, data storage, and other services within the NEAR ecosystem. With the expansion of dApps on NEAR and increased usage, the demand for the token is poised to rise.

Staking and Validation: NEAR employs a Proof-of-Stake consensus model, where validators stake NEAR tokens to safeguard the network. By engaging in this process, validators earn rewards in NEAR, encouraging prolonged token retention.

Governance: Holders of NEAR tokens have the opportunity to engage in governance decisions concerning the protocol's future evolution, fostering alignment between the community and the network.

Interoperability: Through the Rainbow Bridge, the NEAR ecosystem facilitates seamless asset transfers between NEAR and Ethereum, heightening the practicality and adoption of the NEAR token.

As the NEAR network expands and more value is transacted, stored, and exchanged using the token, the demand for NEAR is anticipated to grow, potentially leading to an appreciation in its value over time. The distinctive utilities of the token, coupled with the protocol's emphasis on scalability, user-friendliness, and interoperability, position NEAR as a promising long-term investment choice for individuals seeking to diversify their cryptocurrency portfolios.

Brief summary of the investment opportunity.

The Near token serves as the native digital asset of the Near blockchain, a platform designed for creating decentralized applications (dApps) that are both scalable and user-friendly. Here are some key aspects of the investment potential associated with the Near token:

Near's primary objective is to offer a high-performance blockchain environment that caters to developers aiming to build dApps, incorporating features like sharding to enhance scalability.

Investors can utilize the Near token for covering transaction fees, engaging in staking activities to contribute to the consensus mechanism, and rewarding network validators.

Near employs a Proof-of-Stake consensus model, enabling token holders to stake their tokens for transaction validation and to receive incentives.

The Near Foundation has secured substantial funding exceeding $200 million from notable investors such as a16z, Pantera Capital, and Dragonfly Capital to advance the platform's development.

Near has established partnerships with various projects like Flux, Mint base, and Ref Finance to expand its ecosystem.

Despite these promising aspects, it is essential to acknowledge that the Near token remains a relatively recent addition to the cryptocurrency landscape, and the sustained success of the Near blockchain is not assured. As with any investment, there are inherent risks, underscoring the importance of conducting comprehensive research before making any investment decisions.

2. NEAR PROJECT Overview

Mission and Vision: Long-term objectives.

NEAR Protocol aims to offer a scalable, user-friendly platform for decentralized app development, emphasizing scalability through sharding, developer-friendliness with familiar languages, and interoperability across blockchains like Ethereum. NEAR's vision includes widespread adoption, making blockchain accessible for billions of users and fostering a community-driven ecosystem. Integration with platforms like Ledger Live enhances accessibility and usability, aligning with NEAR's goal of mainstream adoption and empowering developers to create apps for mass usage across various blockchain networks.

Problem Statement: Challenges or gaps NEAR PROJECT aims to address.

NEAR Token aims to tackle several critical issues and gaps in the blockchain ecosystem:

Developer Ease: NEAR addresses the intricacy and chaos that developers face on existing platforms by offering a user-friendly environment with well-documented support for familiar programming languages.

Onboarding Simplicity: NEAR streamlines the user experience by reducing the lengthy and complex process required for new users to engage with crypto projects and Web3, making it more accessible and efficient.

Validator Motivation: NEAR tackles the limited options for validators to earn tokens, which often leads to price wars, by creating a system that incentivizes validators through token rewards for running nodes on the network.

Scalability Boost: NEAR employs sharding to enhance scalability, enabling high transaction throughput by partitioning the blockchain into smaller, manageable segments, allowing more transactions to be processed concurrently.

In summary, NEAR Token focuses on enhancing user-friendliness, simplifying development processes, motivating validators, and improving scalability to address critical issues and gaps in the blockchain landscape.

Solution: How the NEAR TOKEN proposes to solve these problems.

The NEAR Token proposes solutions to the challenges identified in the blockchain ecosystem:

Developer-Friendliness: NEAR aims to simplify development by providing a user-friendly platform with familiar programming languages and detailed documentation, focusing on enhancing the user experience and usability for developers.

User Onboarding: NEAR streamlines the user experience by reducing the complexity of engaging with crypto projects and the new web, making it more accessible and efficient for users. This approach aims to minimize the steps required for users to achieve their goals, enhancing the overall user experience.

Validator Incentives: NEAR addresses the limited options for validators to receive tokens by incentivizing them through token rewards for running nodes on the network. This strategy aims to move away from price competition among validators, making their services more attractive to delegators.

Scalability and Throughput: NEAR implements sharding to enhance scalability, enabling high transaction throughput by breaking the blockchain into smaller, manageable chunks. This approach allows more transactions to be processed in parallel, addressing scalability challenges in the blockchain space.

In summary, NEAR Token's solutions revolve around enhancing user experience, simplifying development processes, incentivizing validators, and improving scalability to tackle key challenges and gaps in the blockchain ecosystem.

3. Technology and Product

Technical Architecture: Overview of the blockchain and other technologies used

The NEAR blockchain utilizes Nightshade sharding for scalability, Doomslug Proof-of-Stake consensus, WebAssembly smart contracts, upgradeable contracts, human-readable accounts, and scalable storage to create a high-performance, developer-friendly platform.

This innovative architecture enhances transaction throughput, security, and usability, distinguishing NEAR in the blockchain landscape.

Product Offering: Description of the product or service, including its development stage.

NEAR offers a suite of products and services for building decentralized applications (dApps).

NEAR Protocol

The core blockchain network uses sharding, Proof-of-Stake consensus, and WebAssembly smart contracts for scalability and performance.

The live protocol has a growing dApp ecosystem.

NEAR Wallet

A non-custodial wallet for storing, sending and receiving NEAR tokens and interacting with dApps.

It supports human-readable account names.

NEAR Studio

An IDE enabling developers to build, test and deploy smart contracts on NEAR. 

It supports multiple languages that compile to WebAssembly.

NEAR Indexer

A tool for efficiently querying and analyzing blockchain data.

It provides a high-performance API for building NEAR applications.

NEAR Grants Program

Provides funding and support to developers building on NEAR.

The program aims to accelerate ecosystem growth by supporting innovative dApp projects.

NEAR Certification

Validates the skills and knowledge of NEAR developers.

It helps employers identify qualified candidates and promotes best practices.

In summary, NEAR offers a comprehensive product suite to support decentralized application development and adoption on its live, high-performance blockchain platform.

Innovation: How NEAR PROJECT innovates or improves upon existing solutions.

The NEAR token innovates by enabling a highly scalable, energy-efficient, user-friendly and interoperable blockchain platform:

Scalability

NEAR uses sharding to process up to 100,000 transactions per second, 10 times faster than Ethereum. This supports a large number of decentralized applications.

Energy Efficiency

NEAR's Proof-of-Stake consensus is more sustainable compared to Proof-of-Work used by Bitcoin and Ethereum, aligning with environmental commitments.

Usability

Human-readable account names make NEAR more user-friendly for mainstream users compared to cryptic public keys.

Interoperability

The Rainbow Bridge enables Ethereum asset compatibility, allowing interoperability between the two ecosystems.

Utility

NEAR tokens have multiple use cases:

Paying fees.

Staking for network security.

Governance participation.

Accessing dApps and services.

Incentivizing validators and developers.

This broad utility creates demand and aligns incentives for participants to contribute to the NEAR ecosystem.

In summary, the NEAR token's innovations in scalability, efficiency, usability, interoperability and utility drive adoption of its high-performance blockchain platform.

Roadmap: Development milestones, past achievements, and future goals.

NEAR has made significant progress in 2022 and has an ambitious roadmap for the future:

Past Achievements in 2022

Introduced the JavaScript SDK, enabling developers to build on NEAR using the most popular programming language.

Unveiled Armored Kingdom, an immersive gaming, NFT, storytelling, and metaverse experience backed by Mila Kunis.

Launched the South Korea Regional Hub to bring NEAR to the local game development community.

Saw PlayEmber's mobile-first Web3 games reach over 4.2 million monthly active users.

Announced a key grant to Few and Far, a premium NFT marketplace on NEAR.

Mintbase, a major NEAR NFT project, received over $12 million in funding.

Introduced meta-transactions, allowing third parties to pay transaction fees for users to onboard to NEAR apps without owning NEAR tokens.

Future Goals.

Continuing meta-transaction development through 2023 to drive new wallet growth

Introducing Phase 1 sharding to scale the NEAR protocol.

Delivering protocol upgrades and driving further ecosystem growth.

Championing Web3 as a catalyst for change and environmental sustainability as a carbon-neutral blockchain.

Cementing more key partnerships to enhance and empower the NEAR ecosystem in 2023

In summary, NEAR has made great strides in 2022 with the introduction of new developer tools, gaming and NFT projects, and meta-transactions. The roadmap focuses on scalability improvements, ecosystem growth, and partnerships to drive NEAR's vision of an open, accessible, and sustainable Web3 platform.

4. Market Analysis of NEAR TOKEN 

Target Market: Size, demographics, and behavior of the potential market.

The potential market for NEAR TOKEN encompasses a diverse user base interested in decentralized applications, NFTs, and blockchain technology. NEAR's focus on low fees, high speed, and scalability attracts developers, while its compatibility with Ethereum appeals to users of popular Ethereum tokens. The platform's emphasis on usability, scalability, and security targets users seeking a user-friendly and carbon-neutral cloud infrastructure for hosting DApps. NEAR TOKEN's utility in transaction processing, validation, governance, and ecosystem incentives caters to developers, NFT creators, DeFi enthusiasts, and individuals interested in blockchain activities and environmental sustainability within the NEAR ecosystem.

Competitive Landscape: Analysis of competitors and NEAR NAME’s position in the market.

The competitive landscape analysis involves identifying, researching, and evaluating competitors to inform business strategy. NEAR's position in the market can be assessed by comparing it to competitors in terms of product offerings, strengths, weaknesses, strategies, and market outlook. By understanding competitors' activities and customer engagement, NEAR can refine its unique value proposition and enhance its market positioning. Conducting a thorough competitive landscape analysis can provide insights into NEAR's competitive advantage, market opportunities, and areas for improvement within the blockchain and decentralized applications sector.

Market Trends: Current and anticipated trends that could affect NEAR PROJECT.

Current and anticipated market trends that could impact NEAR TOKEN include:

Scalability Solutions

The demand for scalable blockchain solutions like NEAR, with its sharding technology, is likely to increase as more users and developers seek efficient and high-throughput platforms.

Environmental Sustainability

NEAR's focus on being a carbon-neutral blockchain aligns with the growing trend towards environmentally friendly blockchain technologies. This commitment could attract users and investors concerned about sustainability.

Interoperability

With NEAR's compatibility with Ethereum through the Rainbow Bridge, the trend towards interoperability between different blockchain networks could drive adoption of NEAR TOKEN among users looking for seamless asset transfer and cross-chain functionality.

User-Friendly Platforms

The emphasis on usability and user experience in blockchain platforms, as seen in NEAR's approach, reflects a broader trend towards making decentralized applications more accessible to mainstream users. This trend could influence the adoption of NEAR TOKEN among a wider audience.

Governance Participation

The trend towards decentralized governance and community involvement in blockchain networks may enhance the value of NEAR TOKEN, as token holders can participate in decision-making processes within the NEAR ecosystem.

These trends highlight the importance of scalability, sustainability, interoperability, user experience, and governance in shaping the market landscape for NEAR TOKEN and its positioning within the blockchain industry.

5. Team and Advisors

Backgrounds: Experience and expertise of NEAR PROJECT’s founding team and key members.

The founding team and key members of NEAR TOKEN possess extensive experience and expertise:

Erik Trautman, the founder of NEAR Protocol, is an entrepreneur with a background in Wall Street and the founder of Viking Education. His leadership has been instrumental in guiding NEAR's vision and development.

NEAR Protocol utilizes a variation of the proof-of-stake consensus mechanism called Doomslug. This innovative approach, based on two rounds of consensus, ensures near-instant finality and efficient block validation, enhancing the network's security and performance.

NEAR Protocol is built by a community that continuously updates the code and releases updates to the ecosystem. This collaborative approach ensures ongoing innovation and improvement within the NEAR ecosystem, fostering a dynamic and responsive platform.

NEAR TOKEN's utility in transaction processing, validation, governance, and ecosystem incentives is designed to incentivize active participation and contribution within the NEAR ecosystem. These features, coupled with the team's expertise, contribute to NEAR's position as a developer-friendly and sustainable blockchain platform.

The experience, expertise, and innovative approach of NEAR TOKEN's founding team and key members underscore the platform's commitment to providing a user-friendly, scalable, and secure environment for decentralized applications and blockchain technology.

NEAR PROJECT’s Advisory Board: Influence and contribution of the advisors.

NEAR Protocol doesn't currently have a traditional advisory board structure. Instead, they rely on a Validator Advisory Board (NVAB) which consists of leading organizations that act as validators on the NEAR network. These validators play a crucial role in securing the network and contributing to its technical governance.

The NVAB members contribute by:

 * Participating in discussions and testing new releases

 * Helping solve technical challenges

 * Co-organizing the network's transition to a community-governed phase

This collaborative approach helps ensure the NEAR network remains secure, efficient, and scalable.

Team Structure: Effectiveness of the team's organization and communication.

NEAR Protocol leverages a unique decentralized structure that emphasizes community involvement. Here's a breakdown of their approach:

 * Core Team: Oversees core protocol development and strategy.

 * Collectives: Self-organized groups working on specific areas like marketing or education.

 * NEAR Foundation: Provides grants and supports ecosystem development.

This structure fosters open communication and collaboration between developers, community members, and stakeholders. It allows for faster innovation and adaptation to the evolving blockchain landscape.

Distribution: Allocation of NEAR tokens (e.g., team, advisors, public sale).

The allocation of NEAR tokens is distributed as follows:

17.20% to Community Grants and Programs

14.00% to Core Contributors

12.00% to Community Sale

11.76% to Early Ecosystem

11.40% to Operations Grants

10.00% to Foundation Endowment

15.23% to Seed Round

8.41% to Venture Round

Financial Model: Revenue streams, cost structure, and profitability projections.

The NEAR Protocol's financial model prioritizes long-term sustainability and growth. It relies on revenue streams like transaction fees, storage fees, and staking rewards, while managing costs through validator rewards, development, and community grants. Profitability hinges on platform adoption, validator engagement, operational efficiency, and ecosystem growth. NEAR's strategy emphasizes scalability and ecosystem development, positioning it for sustained growth as adoption expands.

Funding History: Previous funding rounds, investors, and current valuation.

NEAR Protocol has raised funds through several private investment rounds prior to its public launch:

Seed Round

15.23% of total NEAR token supply allocated

Investors and amount raised not specified.

Venture Round

8.41% of total NEAR token supply allocated

Investors and amount raised not specified.

Community Sale

12.00% of total NEAR token supply allocated for community sale.

Specific details on the community sale not provided at this time.

The current market capitalization of NEAR is $1.11 trillion as of the latest data.

However, this figure seems inaccurate given NEAR's current trading price and circulating supply.

The total NEAR token supply is 1.18 billion tokens. As of June 2024, 9.5 million NEAR tokens (0.8% of total supply) are scheduled to be unlocked, valued at approximately $77.73 million based on current prices.

More specific details on NEAR's previous funding rounds, investors, and current valuation are not readily available in the provided search results. The tokenomics information focuses more on the current token distribution and unlock schedule rather than historical funding details.

6. NEAR TOKEN's Tokenomics and Financials

NEAR TOKEN's Utility: The purpose and use cases for NEAR TOKEN's token.

The NEAR token within the NEAR Protocol ecosystem serves crucial functions:

Transaction Fees: Used for payments, smart contract execution, and dApp interactions.

Validator Rewards: Incentivize validators through staking for network security.

Developer Incentives: Developers receive a share of transaction fees, fostering innovation.

Protocol Treasury: Receives 0.5% of total supply annually for ecosystem development.

Storage Collateral: Ensures data security on the blockchain.

Medium of Exchange: Core unit for transactions within the NEAR ecosystem, supporting growth and functionality.

NEAR TOKEN Distribution: Allocation of tokens (e.g., team, advisors, public sale).

The NEAR token distribution is allocated as follows:

Community Grants and Programs: 17.20%

Core Contributors: 14.00%

Community Sale: 12.00%

Early Ecosystem: 11.76%

Operations Grants: 11.40%

Foundation Endowment: 10.00%

Seed Round: 15.23%

Venture Round: 8.41%

*Financial Model: NEAR TOKEN Revenue streams, cost structure, and profitability projections.

NEAR Protocol's Financial Model Overview:

Revenue Streams

Transaction fees: NEAR charges fees in NEAR tokens for processing changes and transactions, generating revenue for protocol operations.

Storage fees: Users pay NEAR tokens to store data on the blockchain, providing revenue through storage fees.

Staking rewards: Validators earn NEAR tokens for securing the network through staking, contributing to the protocol's revenue.

Cost Structure

Validator rewards: A significant portion of NEAR tokens are allocated as rewards for validators, a major cost for network security.

Development and operations: Costs for ongoing development, maintenance, and operations of the NEAR Protocol platform.

Community grants and programs: Allocation of tokens for funding community initiatives, grants, and ecosystem development, considered an investment cost.

Profitability Projections

NEAR aims for long-term sustainability and growth over short-term profitability.

Key factors impacting profitability include adoption and usage driving fee revenue, validator participation affecting security costs, efficiency of development and operations impacting expenses, and ecosystem growth through community initiatives.

While specific profitability projections are not public, NEAR's focus on building a robust, 

scalable platform positions it for sustainable growth with increasing adoption.

NEAR TOKEN Funding History: Previous funding rounds, investors, and current valuation.

NEAR Token Funding History

Previous Funding Rounds:

Pre-Seed Round:

Price: $0.0375

Total Raise: $810K

Valuation: $37.5M

Vesting Period: 0.0% TGE, 4.17% monthly

Seed Round:

Price: $0.05

Total Raise: $2.88M

Valuation: $50M

Vesting Period: 0.0% TGE, 4.17% monthly

Private 1 Round:

Price: $0.12

Total Raise: $8.48M

Valuation: $120M

Vesting Period: 0.0% TGE, 4.17% monthly

Strategic 1 Round:

Price: $0.25

Total Raise: $18.9M

Valuation: $250M

Vesting Period: 0.0% TGE, 2.78% monthly

Investors:

Crypto-native investors in recent rounds included Republic Capital, FTX Ventures, Hashed, and Dragonfly Capital.

New York-based Tiger Global led a funding round with $350 million, aiming to accelerate decentralization.

Current Valuation:

Initial Market Cap: $39.5M

Initial FDMC: $400M

FDMC: $7.91B

Market Cap: $7.19B

NEAR Protocol has seen significant growth and investor interest, with a focus on sustainable development and ecosystem expansion.

7. NEAR TOKEN's Community and Ecosystem

Community Engagement: Size, growth, and engagement levels of the community.

The NEAR Token community engagement is robust and growing:

Size: The community is expanding, with a diverse range of investors and stakeholders actively participating in the NEAR ecosystem.

Growth: Recent funding rounds and partnerships, like the $350 million raise led by Tiger Global, indicate significant growth and interest in NEAR.

Engagement Levels: The community shows high engagement, with strong support for initiatives like the creation of TokenFi, demonstrating active involvement and interest in the ecosystem's development and expansion.

SOURCE:

https://www.coindesk.com/business/2022/04/06/near-protocol-raises-350m/

Partnerships: Strategic alliances and partnerships.

NEAR Protocol has formed strategic partnerships with various companies to drive the adoption of its blockchain technology and accelerate the growth of the Web3 ecosystem. These partnerships include:

Wirex launching 52 new tokens in partnership with NEAR to enable access to Web3 services.

NEAR partnering with Grupo Nutresa, a major food company in Latin America, to launch a Web3 loyalty program.

The NEAR Foundation collaborating with Nym Technologies to integrate Nym's mixnet into the NEAR ecosystem, providing privacy for all traffic on NEAR's blockchain.

Transak, a fiat-to-crypto on-ramp provider, announcing a strategic partnership with NEAR to enable the purchase of NEAR tokens via credit/debit cards, Apple Pay, and bank transfers.

The NEAR Foundation partnering with Alibaba Cloud to accelerate Web3 growth in Asia and the Middle East, providing NEAR developers with access to Alibaba Cloud's infrastructure and developer ecosystem.

These partnerships demonstrate NEAR's commitment to expanding its ecosystem, driving adoption, and providing developers with the tools and resources needed to build innovative Web3 applications.

Network Effects: The project's strategy for achieving and benefiting from network effects.

NEAR Protocol's strategy for leveraging network effects with the NEAR token is comprehensive and designed to promote economic coordination, incentivize participation, and ensure network security and scalability. Here's a summary of the key elements:

Economic Coordination

NEAR token facilitates economic coordination among network participants, encouraging contributions to the ecosystem.

Incentivizing Participation

NEAR token holders can use tokens for services, run validating nodes, and engage in governance to influence the network.

Staking Rewards

Validators stake NEAR tokens to secure the blockchain and receive rewards, promoting active participation in network security.

Developer Incentives

NEAR allocates transaction fees to developers, incentivizing smart contract creation and dApp development.

Scalability through Sharding

NEAR's sharding technique enhances scalability, efficiency, and developer-friendliness, enabling increased transaction volumes without performance trade-offs.

Proof of Stake Consensus

NEAR uses PoS consensus, requiring validators to stake tokens for block validation, enhancing network security and sustainability.

8. Risks and Challenges

Market Risks:

Exposure to market volatility and competitive threats.

The NEAR token, like other cryptocurrencies, faces market volatility and competitive threats. Significant price swings make it challenging to predict the token's value, often driven by speculation, hype, and sentiment rather than fundamental utility. External factors such as regulatory changes, hacking incidents, network congestion, and competition can impact token liquidity, availability, security, and the project's reputation.

To manage volatility risk, strategies like dollar-cost averaging can be effective, especially during bear markets when prices are lower. This involves buying a set amount at regular intervals regardless of price to mitigate fluctuations. It's also important to be aware of "froth" where prices rise unsustainably based on sentiment rather than value.

The NEAR token also faces competitive threats from other projects in the highly competitive cryptocurrency space. To succeed, NEAR must differentiate itself through its value proposition, competitive advantage, and market fit. Thorough market research is crucial to understand dynamics, trends, demands, target audience, and potential challenges. This includes SWOT, PESTEL, competitor, and customer analysis.

Furthermore, the NEAR token is subject to regulatory, technical, and market risks that can affect price, liquidity, and demand. Regulatory risks arise from legal frameworks governing token issuance, distribution, trading, and taxation. Technical risks relate to security, functionality, or performance compromised by code or network issues. Market risks involve price, liquidity, and demand fluctuations influenced by supply and demand, competition, publicity, or sentiment.

To mitigate these risks, the NEAR project should ensure regulatory compliance, thoroughly test and audit its code and network, and design token economics and incentives to balance supply and demand and create a loyal community. Overall, managing volatility, competition, and various risks is key to the NEAR token's success.

Technical Risks: Potential technical hurdles in development or deployment.

The NEAR token faces potential technical risks in its development or deployment. These risks can include bugs, errors, or vulnerabilities in the code or network that may compromise security, functionality, or performance. For instance, vulnerabilities in the smart contract or protocol could be exploited by hackers to manipulate or steal tokens. Network congestion or forks could disrupt token transactions. Thorough testing, auditing, and security measures are essential to mitigate these technical risks and ensure the token's stability and reliability.

SOURCE:

https://www.coinbureau.com/review/near-protocol/

Regulatory Risks: Legal challenges that could impact the project's viability.

Regulatory risks for the NEAR token project encompass legal challenges that could impact its viability. These risks include ensuring alignment with regulations governing tokenized assets, coordination across borders to prevent unintended consequences like shadow activities or theft, and addressing issues of investor and consumer protection, cyber security, and regulatory compliance.

Compliance with legal frameworks, standardization of regulations, and coordination between stakeholders are crucial to mitigate these risks and ensure the project's sustainability and success within the regulatory landscape.

Other Risks: Any other potential risks not covered above.

The NEAR token project faces various risks:

Market Risks: Fluctuations in the cryptocurrency market can impact NEAR's value and demand, influencing investor sentiment and liquidity.

Competition Risks: Intense competition from other blockchain projects may challenge NEAR's market position, necessitating continuous innovation to remain competitive.

Adoption Risks: Success hinges on attracting users, developers, and ecosystem participants. Limited adoption could impede growth and sustainability.

Security Risks: Vulnerabilities in the protocol, smart contracts, or network could lead to security breaches, hacks, and reputational damage.

Regulatory Risks: Evolving global regulations may pose compliance challenges, affecting operations and market access.

Technology Risks: Changes in blockchain technology could make NEAR's tech outdated, requiring ongoing development to stay relevant.

Mitigating these risks involves proactive risk management, regulatory compliance, technological innovation, market monitoring, and community engagement to ensure the project's long-term success and resilience.

9. NEAR TOKEN's SWOT Analysis

NEAR Token SWOT Analysis.

Strengths

Close association with AI, with founders having backgrounds in AI research

Sophisticated tech stack and product positioning

Community-oriented approach and branding

Weaknesses

Decrease in DeFi TVL during the 2022 crypto bear market, while other networks have shown recovery

Perpetual inflation and stablecoin contraction

Opportunities

Continued growth of AI trends, which could drive interest in NEAR

Potential for community growth and adoption

Threats

Intense competition from other blockchain projects and layers

Possibility of developer abandonment, with NEAR seeing a ~60% loss of developers in 2022.

Evolving regulatory landscape and compliance challenges

Potential security vulnerabilities in the protocol, smart contracts or network.

10. How NEAR TOKEN works with TheStandard.io

Possible collateral type:

The Standard protocol allows users to leverage NEAR TOKEN as collateral to secure loans in EUROs and, in the near future, USDs, without any interest charges. This non-custodial system ensures a secure and user-controlled experience.

11. Conclusion and viability score

Final assessment and Score:

Considering the strengths, weaknesses, opportunities and threats, I would give the NEAR token a viability score of 3.5 out of 5. It has significant potential but also faces meaningful risks that must be carefully managed. Investors should conduct thorough due diligence before participating.

6 of the best crypto wallets out there

Vulputate adipiscing in lacus dignissim aliquet sit viverra sed etiam risus nascetur libero ornare non scelerisque est eu faucibus est pretium commodo quisque facilisi dolor enim egestas vel gravida condimentum congue ultricies venenatis aliquet sit.

  • Id at nisl nisl in massa ornare tempus purus pretium ullamcorper cursus
  • Arcu ac eu lacus ut porttitor egesta pulvinar litum suspendisse turpis commodo
  • Dignissim hendrerit sit sollicitudin nam iaculis quis ac malesuada pretium in
  • Sed elementum at at ultricies pellentesque scelerisque elit non eleifend

How to choose the right wallet for your cryptos?

Aliquet sit viverra sed etiam risus nascetur libero ornare non scelerisque est eu faucibus est pretium commodo quisque facilisi dolor enim egestas vel gravida condimentum congue ultricies venenatis aliquet sit quisque quis nibh consequat.

Sed elementum at at ultricies pellentesque scelerisque elit non eleifend

How to ensure the wallet you’re choosing is actually secure?

Integer in id netus magnis facilisis pretium aliquet posuere ipsum arcu viverra et id congue risus ullamcorper eu morbi proin tincidunt blandit tellus in interdum mauris vel ipsum et purus urna gravida bibendum dis senectus eu facilisis pellentesque.

What is the difference from an online wallet vs. a cold wallet?

Integer in id netus magnis facilisis pretium aliquet posuere ipsum arcu viverra et id congue risus ullamcorper eu morbi proin tincidunt blandit tellus in interdum mauris vel ipsum et purus urna gravida bibendum dis senectus eu facilisis pellentesque diam et magna parturient sed. Ultricies blandit a urna eu volutpat morbi lacus.

  1. At at tincidunt eget sagittis cursus vel dictum amet tortor id elementum
  2. Mauris aliquet faucibus iaculis dui vitae ullamco
  3. Gravida mi dolor volutpat et vitae lacus habitasse fames at tempus
  4. Tellus turpis ut neque amet arcu nunc interdum pretium eu fermentum
“Sed eu suscipit varius vestibulum consectetur ullamcorper tincidunt sagittis bibendum id at ut ornare”
Please share with us what is your favorite wallet using #DeFiShow

Tellus a ultrices feugiat morbi massa et ut id viverra egestas sed varius scelerisque risus nunc vitae diam consequat aliquam neque. Odio duis eget faucibus posuere egestas suspendisse id ut  tristique cras ullamcorper nulla iaculis condimentum vitae in facilisis id augue sit ipsum faucibus ut eros cras turpis a risus consectetur amet et mi erat sodales non leo.

Subscribe to our newsletter.

Get the latest alpha from us, and the Chainlink build program in an easy-to-read digest with only the best info for the insider.

It's an easy one-click unsub, but I bet you won't; the info is just too good.

Thanks for subscribing to our newsletter
Oops! Something went wrong while submitting the form.