Unlike before, the XEM news is usually not requested by many people Ever since hackers succeeded in stealing $500m worth of NEM tokens from Coincheck (Japanese crypto exchange), the blockchain platform hardly makes the headlines.
This was when the XEM tokens were slightly above $1 at the end of January. This year hasn’t really favoured the price of NEM. At the start of the year NEM had reached $17 billion, but at the end of last week, it was trading just below $0.1 giving it a $860m market cap.
NEM, despite this, has won big this week. Early on Tuesday, NEM’s market cap spiked above the billion-dollar mark with each coin having a worth of $0.11. In the past two days, NEM’s total value has risen higher than $100m.
NEM (XEM) Price Today – XEM / USD
Price 24H (%) -1.72%
What is NEM?
NEM, short form for New Economy Movement is a smart contract-ready platform. Just the same way Ether (ETH) is utilized on the Ethereum network, XEM tokens are used to pay for network fees and the development of dApp. NEM’s consensus algorithm makes it unique. Referred to as Proof-of-importance (POI), nodes are weighted on the activity of their network and their wallet balance. This means that, on the NEM blockchain, nodes having smaller wallets are more influential than their bigger counterparts.
NEM Announces Partnership
NEM has announced a partnership with an Australian reward-based dining app known as Liven. This partnership will help users to collect market data using the platform as well as use XEM to purchase LVN tokens. This may explain the price spike experienced recently.
On 1st October, NEM also announced that they would partner with Portal Network in order to offer a blockchain name service.
Is NEM Sleeping or waiting for its boom?
NEM has a slow growth. When it launched in 2015, it was one of the very few platform networks available, next only to Ethereum. However, things have changed as projects like, Zilliqa (ZIL), Cardano (ADA) and VeChain (VET).
NEM needs to improve and get back strongly. From last year’s blockbuster sales, the competition has strong teams paid for by large war-chests. The increase in price recently, may be due to the partnerships it successfully entered in less than a week, but this doesn’t last for long. A stronger foundation needs to be built by NEM because the price of XEM will never be stable.
Back then, a well-executed marketing campaign and utopian rhetoric was enough, but now investors are well informed now. The community will be in search of signs to show that NEM is developing along the right lines; partnering with an Australian dining app might not achieve this.