What’s Going On With NEM (XEM)?
NEM which stands for New Economy Movement is one of the most popular platforms.
NEM functions just like the Ethereum blockchain, allowing other tokens to be launched on the NEM network.
NEM also introduces a new type of consensus, the Proof on the importance which is based on PoS.
NEM although a very quiet crypto when it comes to publicizing projects on the network has enjoyed tremendous success in the market, ranking near the top of the market capitalization list.
Over the last couple of months, multiple issues have resulted in the acute devaluation of the NEM tokens.
NEM’s (XEM) current value
A couple of months ago, NEM was easily one of the biggest crypto platforms with a market cap of over $15 billion USD, and a value that neared $2.
However, due to certain factors (avoidable and unavoidable) have seen the value of XEM plunge to an ebb so low concerns have been raised considering the future of the project.
As at the time of this writing, XEM has a trade – exchange value of $0.194 which is a far cry from its value a couple of months back.
NEM has an estimated market cap of $1.755 billion USD which makes it the 16th largest crypto. The downward dive of XEM can be attributed to.
The faltering crypto market
NEM (XEM) just like every other cryptocurrency has suffered huge blows at the hands of the ravaging bears. NEM has no part to play in this issue, but its root makes it worse.
NEM’s strongest roots are planted in Japan, and South Korea and these markets have been highly unpredictable.
When South Korean exchange platform was hacked last month, it ignited a huge Asian sell-off, throwing the entire crypto market off balance, the value of XEM took a sharp drop as a result.
Reoccurring exchange problems
In February, users of NEM were faced with deposit and withdrawal problems on Huobi, NEM also had withdrawal problems with Faucet exchange in the same month.
In March NEM faced transfer and deposit problems with Cryptopia. Users of the Android NEM app were also left stranded in December 2017 when the app was held standstill by a navigation problem.
NEM has been through numerous issues with digital exchange platforms since its launch, too numerous to keep count.
The issues NEM has faced with exchange platforms frustrated investors, traders and HODLers alike, as a result, some NEM users migrated to more effective coins on exchange platforms.
Lack of developers
This problem may have been resolved (although not fully), but it was one of the major problems that led to the devaluation of the asset.
After more than 2 years in the market, NEM had only 3 developers working on the project. A lot of problems stemmed from the issue of lack of developers on the NEM project.
Comparing NEM with other platforms; Ethereum has over 150 active developers in its network, NEO’s developers are also around 100.
More developers working on a crypto project has most often times than not translated into more projects, which in turn creates a fast developing ecosystem.
If NEM wants to compete with the likes on NEO, it should look to add more developers to its team.