LUXCoin (LUX) Coin Review & Analysis – LUXCoin Token Analysis

LUXCoin

Designing And Building Enterprise Ready Security And Privacy Products

Network Token

Luxcore is a blockchain solutions and services ecosystem that focuses on designing and building enterprise ready security and privacy products. The Luxcore platform relies on the ground-breaking PHI2 algorithm fueled blockchain to develop and implement it’s core product offerings.

This includes the open source blockchain token of value, Lux Coin & the enterprise consumer focused, closed source products like LuxGate and Parallel Masternodes.

Masternodes – A Lux Masternode is a 24/7/365 dedicated server connected to the blockchain network which adds an additional layer of stability and two additional levels of functionality to the network. The additional functions are increased transactions speeds and enablement of LuxSend.
Segwit – Through the introduction of SegWit, Lux will separate transaction signatures. This is achieved by stripping the signature from within the input and structuring it to the end of a transaction. This ensures higher security as it prevents the receiver from intercepting and modifying the sender’s transaction ID in a bid to get more coins from the sender as the data is “detached” from the transaction.
Smart Contracts – Lux will introduce Smart Contract capability that will enable the unification of blockchains through LuxGate and PMN. These Smart Contracts can be deployed directly from the wallet and can trigger cross network transactions and tasks based on pre-defined conditions.
LUXSend – LuxSend is a form of coin-mixing that provides an additional layer of privacy. The Coin-mixing service provided by the Lux Masternode network will ensure trust-less mixing of coins to obfuscate their origin, wallet details and addresses.

“With the upcoming releases, apart from being a secure crypto coin, Luxcore will introduce Segwit, Smart-Contracts, LuxGate through the innovative Parallel Masternode System providing a Private Network for enterprises and business on top of the existing Masternode feature for the Public Network. ”

Positives

First, we have to mention the recent”LuxCore Mercury” update which was the biggest update we have seen from the Team to date. Investors who are interested in a long term entry into a Feature-rich Privacy Coin with a Market Cap under $10m at the time of writing (August 2018) should consider now to be a great entry point. Now with that out of the way, here are a few more positives.
LUXCoin has all the features that we’ve seen in other Privacy Coins to some extent. “Project A” may offer 2 or 3 solutions while “Project B” offers another 1 or 2, In LUXCoins case, they offer all of these features as far as we can see. Besides being Feature rich with features such as Segwit, LUXSend, LuxGate (Interoperability) and their Trading Wallet, LUXCoin also offers businesses and institutions the ability to utilize Parallel Masternodes which is something very unique to the project. “This feature is built on the revolutionary i2pd Technology and SAM Protocol thus enhancing Lux’s security capability. The Parallel Masternodes will only be available to verified and vetted business and government institutions and will act as a secure information gateway on the blockchain.” – That was a direct quote from Luxcore.io, we won’t try to explain all of the technical details on why this technology is so important here but we encourage you to take a look at it in their Whitepaper
MultiSig is a feature that we think a lot of people underestimate, especially when a project intends to garner mainstream/general adoption. MultiSig allows for multiple combinations of transaction verification. LUXCoin does a great job of explaining different scenarios in which MultiSig technology is essential both from a general users perspective and a business/operation perspective. LUXCoin offering MultiSig Transactions allows businesses and large clients to safely secure their funds without the fear of losing control due to unforeseen circumstances, e.g Bad Acting, Disagreements, Loss of Keys, Death, etc.
LuxCore recently appointed John Mcafee as their CEO. In charge of Overall business responsibility, strategic direction of Luxcore and Partnerships, regardless of your opinion of John Mcafee you cannot deny his ability to market and direct a product. This is a huge step for LUXCoin becoming a proper entity and less of an anonymous privacy coin like they were in the past. More and more credibility is being passed onto the Team and the Project as they tick off Roadmap Goals and develop the product. Mcafee leading the project opens LUXCoin up to a lot more opportunity.
While we have mentioned a potential concern regarding the Masternode Minimums/Requirements in terms of the amount of LUX you need to hold, for Investors who have some cash to play with, LUX offers an extremely lucrative passive income for POS computations. A direct quote from the Luxcore website states – “Masternode rewards are 40% of the Proof of Stake block and are randomly paid to the Masternode Owners who support the network.” Considering LUXCoin only has a Market Cap of $5.3m at the time of writing (August 2018), the project and the price of LUX has huge upside potential.

Concerns

One think you’ll see is a lot of concern around the supply of LUX. At the time of writing there are around 2.3 Million LUX in circulation with a Total Supply of 5.3 Million LUX. This is all good until you check out the Max Supply which is set at 60 Million LUX. Obviously with ANY collectible/rare item/limited resource, the more LUX that enters the circulating supply, the lower the value of the existing LUX supply. This is really only a concern for long term investors, but as long as the project continues to develop and garner adoption, the price MAY not be affected. This isn’t a direct concern for LUX, there are countless other projects which will have to go through the same thing.
Just some general concerns over competition in the space. Privacy coins are a dime a dozen but LUXCoin does have a lot of the features that other coins pride themselves on, covered from the start. Masternodes, Private Transactions through LUXsend, Smart Contracts, Multisig, the list goes on. There will always be competition in this space but LUXCoin does seem to understand this and is covering their bases. Time will tell whether they can pull users away from their competitors and climb up the rankings.
Lets take a look at an Investors point of few for a second. At the time of writing (August 2018), LUX is priced at $2.30 USD. Masternodes require at least 16,120 LUX to operate. At today’s price you’d be looking at just over $36,000 USD to purchase one of these nodes. Some Investors might see this requirement as being way out of reach. When you consider that LUXCoin has a market cap of just $5.3m USD, it may not get any cheaper than that either. This doesn’t change the fundamentals of the project but from an Investors standpoint, there may be other masternodes worth exploring if you’re on a budget.