Crypto pioneer rally: XEM token increased by almost 50% in 24 hours — reasons for the rise?

XEM, the native token of the New Economy Movement (NEM) blockchain platform, has suddenly risen 47,47% in the last 24 hours, from $0.04344 to $0.06406. The case is interesting because it is the first rally for the asset in the last seven months. What caused it we will discuss further.

What is XEM?

XEM is the native token of the NEM blockchain platform, launched in 2014. The project is considered one of the pioneers of the cryptocurrency industry and was designed to eliminate errors in the blockchain. Now, however, the company boasts a global community and is working to create an alternative form of payment for businesses.

The launch took place in 2014 in a thread on the Bitcoin Talk forum. Three developers under the pseudonyms Jaguar0625, BloodyRookie, and gimre are considered the authors of the native token. There was no formal organization; it was just a community of developers and volunteers.

“There was no foundation, there were no for-profit companies, just vision and perseverance. As we’ve grown, we thought we needed a more formal organization. First, we tried a nonprofit foundation. Next, we tried a for-profit group of companies,” said one of the NEM’s founders.

The open decentralized cryptocurrency XEM has a number of features. One of the main ones is probably the way the blockchain is secured. The token uses its own Proof of Importance (PoI) algorithm to ensure timely and reliable processing and registration of transactions on the network.

Through this mechanism, the system takes into account:

• The number of coins that are already on each node;
• How often do they make transactions on the network;
• Who they are transacting with.

Through this estimation, nodes get a share of the commissions from the transactions they have helped to process. According to the developers, PoI ensures that the network can identify and reward those who actually use it the most.

What’s the reason for XEM’s growth?

According to Web3Charts, in the last 24 hours, the asset has hit the top gainers.

1. #NEM $xem
2. #Gamium $gmm
3. #ALEXLab $alex
4. #Pendle $pendle
5. #Stacks $stx
6. #DeepBrainChain $dbc#Web3ChartsTopGainer24h pic.twitter.com/5RoOVAzS30

— Web3Charts (@Web3Charts) February 27, 2023

The exact reason for this success is unknown, but World of Charts analysts forecasted a day earlier that the token would be pummeled.

“Formed descending channel incase of breaking 80–90% bullish move,” experts predicted.

However, the forecast only came true by 60%.

$Xem

Finally Pumped Massively Almost 60% Up From Our Analysis #Crypto #Xem #Xemusdt #Xemcoin #Nem https://t.co/guZWeQHNmW pic.twitter.com/mM4Cc5P2sw

— World Of Charts (@WorldOfCharts1) February 27, 2023

On February 27, on the official page of NEM, there was a message that the project team is investigating the chain stop, which occurred at the height of block 4129631. After discovering the problem, the developers advised all exchanges where the asset is traded to freeze withdrawals and deposits.

PSA: The client team is currently investigating a chain halt that occurred at block height 4129631. We have advised all exchanges to halt withdrawals and deposits.

— NEM (@nemofficial) February 27, 2023

It is interesting that this is the first message from the project team since July 15, 2022. The account was active before that time, and the last message contained only a picture with the inscription “Please stand by.” Therefore, the current activity may be forced in order to solve the problem.

Later, crypto investor The HUM noticed that trading volume of XEM increased on Upbit and Binance exchanges by +950% in the last 24 hours. Which apparently started after the announcement of problems with the NEM blockchain. Users might have just started to move their funds to exclude the possibility of losing them.

After news of the problem spread, the asset hit Google Trend, which affected its value. However, as of this writing, the price of XEM, as well as the daily trading volume, is falling.

Current price and trading volume

At the beginning of the day, XEM was worth $0.04142 and by the evening had reached a peak of $0.06349 (+53,28%). After that, the asset began to fall rapidly; probably, this coincided with the beginning of the withdrawal of funds by clients. At the moment of writing this article, XEM has already started to go down in losses. Compared to the peak value, the difference is already 19,91%.

The trading volume is also gradually dropping, as users have probably already moved their funds to a safe place. According to CoinMarketCap, the trading volume at the moment of writing this article is $469,553,375, plus 198,68% for the last 24 hours, but just recently the figure was +950%.

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What’s next for the price?

Given that this is XEM’s first rally in the last seven months, it’s hard to predict what will happen next. The asset may rise again, or it may continue to fall.

If the official account of the project is to be believed, the block issue has already been resolved. The network has resumed the normal production of blocks with one-minute variables. However, the developers still recommend that all exchanges suspend withdrawals and deposits until the fix is applied so that the problem does not recur.

Until then, the value of the asset is likely to fluctuate. So before you invest, do your own research.

As of 1:10AM UTC, the network has resumed normal block production at one minute variables.

We continue to advise all exchanges keep withdrawals and deposits halted until the hotfix has been applied, to prevent this behavior from reoccurring.

— NEM (@nemofficial) February 28, 2023