ΧΥΟ Is an Altcoin worth watching with a real trading utility
XYO (CCC:XYO-USD) is a cryptocurrency operating on the Ethereum (CCC:ETH-USD) blockchain. XYO has a current supply of just under 14 billion tokens, with nearly 13 billion in circulation. As of November 29, 2021, the price of XYO was $ 0.05406, several times its early January 2021 value of $ 0.0002288.
Investors in XYO have been extremely well rewarded in 2021. What do you need to know about XYO now?
What is XYO?
The best answer is the source itself, official of XYO Twitter (NYSE:TWTR) Account:
“XYO is a decentralized network of devices that anonymously collects and validates geospatial data or data with a geographic component. “
XYO’s mission is to “facilitate education, research and continued development of the XYO protocol to increase understanding of the public interest of an incentive geospatial location network.”
This is an interesting mission for me and XYO has business and practical value unlike other altcoins such as Dogecoin (CCC:DOGE-USD) Where Shiba inu (CCC:SHIB-USD).
XYO now available on Crypto.com
XYO is now available on the Crypto.com app and Crypto.com exchange plus FMFW.io. According to Coinbase (NASDAQ:PIECE OF MONEY), XYO is also available on Coinbase Exchange, KuCoin, Gate.io, HitBTC and ZT. Why am I mentioning where you can trade XYO? Everything connects to a word, value.
Some of the key factors determining the value of a cryptocurrency include number of nodes, growing demand, mass adoption, inflation hedging against fiat currencies, production costs, and regulation. Another key reason I love and perfectly explains the value of altcoins: “The big reason altcoins have any value is because of marketing.”
Marketing is the art of making consumers (and investors) want something they wouldn’t normally consider at all. Fortunately, there are many instances where the wants and needs of consumers match up with marketing and advertising. People then buy, try, or invest in a useful product.
In this regard, XYO emphasizes one factor that I really appreciate, utility. In fact, utility is one of the key factors in valuing any altcoin according to Binance.
5 factors for valuing altcoins
The five key factors for valuing an altcoin are:
- Developers and support;
- History and reputation;
- Volume; and
XYO has a lot of functions, improves its accessibility and according to data from CoinMarketCap, its trading volume has increased by over 196% in the last 24 hours, as of November 29, 2021. So in three of the five factors mentioned above , XYO seems to have traction.
Partnerships and real issues
XYO needs industrial partners to stimulate the use of its protocol. Right now, this list of industry partners includes some well-known names and some that I don’t know at all. Either way, the company’s list provides important information about concrete solutions and case studies from these partners.
XYO itself states that “one of our latest partners is working to solve human trafficking and safety in the Baja California area.”
Other important business solutions and applications for XYO to solve include airports, hospitals, e-commerce, insurance, national security, rental cars, and drones.
For airports in particular, XYO mentions that “the XYO Network can provide independently verified location data that can help minimize baggage handling errors and can ultimately save travelers and travelers time and money. airport staff trying to find the missing baggage ”. Any traveler who has lost a suitcase and experienced the frustration and anxiety of retrieving it in the past will likely think that this usefulness of XYO adds value.
Would I invest in XYO? Honestly no, for the following reasons. XYO has a market capitalization of approximately $ 678 million. I think that’s too high for his current level of adoption. I want to see more partnerships and for the case studies to turn into real applications.
I see a lot of potential for XYO’s commercial applications. It has a use. However, the sharp rise in its price in 2021 does not justify its real adoption in the business world. I wouldn’t buy XYO now, but would keep an eye out for more exciting partnerships.
As of the publication date, Stavros Georgiadis, CFA does not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Stavros Georgiadis is a CFA Chartered Equity Research Analyst and Economist. He focuses on US stocks and has his own stock blog at thestockmarketontheinternet.com/. He has written various articles for other publications in the past and can be contacted on Twitter and on LinkedIn.