XYO (CCC:yousDrCryptocurrency can be an interesting addition to a cryptocurrency portfolio as it will provide some balance. As I mentioned in my recent article on XYO Crypto, its network is one of the largest in the digital asset world. It now has over 3 million knots.
In fact, it calls itself the “Geospatial Oracle Network.” Oracle means that it can provide huge amounts of data from its network of nodes to different users and for different use cases.
However, the XYO crypto market cap is only around $417 million, according to its market stats page at Coinbase Global (NASDAQ:Currency). This ranks it as the 147th largest cryptocurrency by analogy Coinmarketcap.com.
Where things stand in the XYO network
Therefore, there seems to be an inherent contradiction between its popularity and its market valuation. Over time, this will likely correct itself, especially with the rise in the number of XYO crypto use cases.
How does the network work? XYO became popular with the ubiquitous Coin app – it has nothing to do with cryptocurrency exchange and NasdaqCoinbase Global Listed Shares. The Coin mobile application allows users to earn rewards, including digital assets. They earn the reward by “validating geospatial data when traveling, commuting, jogging, or navigating the real world while interacting with each other.”
Moreover, the XYO crypto token can make people money by allowing the owners to share it and basically earn the equivalent of interest. Network operators claim that this system makes the growth of its network of nodes sustainable in the long term.
On October 14, the company published a feature article on Average They announced that the XYO contract had been downloaded more than 3 million times. This makes it “one of the largest blockchain nodes networks on Earth.”
As a result, it can provide incredibly valuable data to third parties. Now the challenge for XYO crypto backers is to find use cases for all the large amounts of data.
Use cases for XYO
As I noted in my recent article, the XYO website discusses use cases such as airport baggage tracking, hospital equipment tracking, and insurance uses.
But the network’s backers also claim that its nodes provide more than just raw geolocation data. the Average The article in which it announced more than 3 million node downloads also claims that nodes can provide validation of their metadata.
This is based on the unique “Binding Witness Protocol”. Here’s how they describe this protocol:
“XYO is self-verifying its data through sourcing support. The parties using the network point to multiple sources for any given data point. The devices act as witnesses to each other, with each device verifying the data provided by the others.”
They call this “untrusted verification” of data provided to users from the network. As a result, it makes the data more valuable than just raw geolocation data.
Moreover, the fact that the number of nodes is constantly increasing due to the reward system allows third-party users to be willing to use it on a larger scale.
Where this leaves investors in XYO Crypto
After peaking at 8 cents on November 6, XYO tokens are in a free fall. As of late December 14, it is trading for 3.32 cents. This represents a 58.5% drop in the price of XYO crypto in just over a month.
This is a very tedious step and highlights the amazing contrast (risk) with this relatively young cryptocurrency. It should make investors a little wary. However, given how far and how quickly the XYO cryptocurrency has fallen, it makes a good investment entry point for long-term crypto investors at the moment. This makes it a good addition to any cryptocurrency investment portfolio of any cryptocurrency investor.
At the date of publication, Mark Hack did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
Mark Heck writes about personal finance at mrhake.medium.com And Newsbreak.com and runs Total Return Value Guide that you can review here.