NXT For Investors #5 – 5 Reasons Why The Price Of Nextcoin (NXT) Fell On Launch Day & Why I Dont Worry About It

This is Tai Zen – currency analyst for PrisonOrFreedom.com. It’s a blog where we talk about different things – strategies, techniques, tools, investments and technology that can help bring freedom to people’s lives in their health, wealth and relationships.

In this video, I want to talk about “Why the price of Nextcoin drop in the last few weeks?”. Now Nextcoin’s original source code was scheduled to be released on January 3rd. Many of you guys know that I invest in Nextcoin. By the way, a lot of people in the NXT community, they refer to Nextcoin as NXT.  For me personally, it’s kind of confusing so I’m going to stick with Nextcoin.

Anyway, the cause in the price of Nextcoin is due to one significant event. On January 3rd, 2014, when BCNext was scheduled to release the original source code in the Java language, all the investors of Nextcoin expected the price of Nextcoin to increase to higher prices.

So like on the day before, it was around 8 to 9 cents on January 2nd. Then on January 3rd, it dropped down to like 4 or less than 5 cents.  So it took a significant hit. It suffered like a 40% pullback and fall in price. This was due to several reasons.

The first reason is there’s only one exchange that you can buy and sell Nextcoins, called DGEX.com and it’s Delta, Google, Echo, X-ray dot com. Because they have the monopoly on the buying and selling of Nextcoins, they decided to jack up the price because before January 3rd, you can buy Nextcoins on DGEX.com, you can buy and sell it for free.

There was no transaction cost. What happened was they jacked up the price to buy and sell Nextcoins on the exchange. So that was the first cause of the price dropping – because a lot of people got pissed off because they were not notified of the increase in transaction cost ahead of time and because it was done on the exact same day as the original source code was being released, which was a big deal in the Nextcoin community.

A lot of people were upset, and a lot of investors were pissed off. So they stopped trading altogether, and they stopped buying and selling Nextcoin altogether, which decreased the volume of Nextcoins that were being bought and sold on a daily basis.

When there’s no transaction and there’s no volume and there’s no liquidity, obviously, that’s going to cause the price of Nextcoin to drop dramatically. And that’s the reason why we saw a 40, 50% drop in the price in Nextcoin. So that was the first reason that caused the price to drop since the beginning of 2014.

The second cause is because the cost to withdraw the Nextcoins from DGEX and transfer to your own account in your own personal wallet or your personal account was pretty much free, and there was zero cost almost to transfer the Nextcoins that you bought on DGEX and then transfer it to your own personal account.

When they jacked up the price on DGEX on January 3rd, the day of the source code release, that pissed off a lot of people, investors and stuff, and that cause them to withhold, to stop withdrawing or moving Nextcoins in or out of the DGEX exchange.

So that’s caused a lot of problems and price to drop and it’s still stabilizing and the price of Nextcoin is still trying to level out and find its natural price.

The third thing that happened was that a lot of people that had a large amount of Nextcoins, and they probably unloaded some of these Nextcoins on the day of release of the source code just to benefit and make money from it. Keep in mind that a large portion of the Nextcoin holders and investors are in it for the long term like myself. So they’re not looking to so much trade it and buy it and sell it.

What happens is there is a small group of people who are looking to make a short-term profit. They’re not looking at the long-term development of Nextcoin. So what they’re doing is on the day of release, they tried to unload it while the price is going up. So because there’s a lot of selling, that’s obviously going to push the price of Nextcoin down. So that’s expected.

The fourth reason that Nextcoin’s price dropped recently is due to the DDoS attacks and these DDoS attacks are hammering the DGEX exchange and it’s closing down the site and it’s causing problems for everyone to access their Nextcoins on DGEX.com. So their website is constantly going down because of these DDoS attacks. So that another reason.

The fifth reason that’s causing the price of Nextcoins to drop recently is the fact that the owner of DGEX.com, the owner, goes by Graviton. They are also the owner of Nextcoin.org the forum and they also go by GravitonIncorporate.org or incorporated on Bitcointallk.org.

You’ll often see the owner answering questions or concerns there. The owner that supposedly I don’t fully understand this, but supposedly, somebody robbed or stole 800,000 Nextcoins from the exchange. So that forced the people who own DGEX.com to jack up the cost, the transaction fee and implement those fees to help recover what they lost or was stolen from them and to have the money and the resources to secure the exchange.

Obviously, I do not work at the DGEX exchange. I have no affiliation with them other than the fact that I have an account there and I buy all my Nextcoins through them and sell my Nextcoins through them. I don’t know their inner workings at DGEX. This is just what I’ve read on the forums and what I’ve investigated, and these are some of the reasons why the Nextcoin price has been falling.

If you notice, it has been levelling it out. It has been stabilizing around the low 4-cent level. I am happy to see that it’s starting to level out now. Now since the source code has been released, I think that a lot of people in the Nextcoin community and new investors are waiting for the source code to be reviewed and to make sure that it’s kosher and it’s good and it’s clean and it does what it says.

I’m not a coder so I cannot read the Nextcoin code and tell you if it’s good or it’s bad or it’s ugly. I don’t know. I have to rely on other people who know how to read it and interpret it for me. At this moment, I don’t have the exact details on it so I cannot share it with you. But as soon as I get the details on it and can confirm it, I’ll definitely share it with you guys here.

So thanks for watching this video, and I hope that these five causes or five reasons that I’ve investigated, that I’ve discovered which help contribute to the fall in the price of Nextcoin help you out.

Personally, I’m going to hold onto NXT for the long term. That was the reason why I originally got into Nextcoin. So I’m not going to let the 40 or 50% drop in price deter me from the long-term outlook on Nextcoin because based on what I’ve researched, they are doing some phenomenal things, and they’re not just another copycat coin developer.

Everybody says that all the other 100 altcoins are copycat coins. To me, they’re very lazy people. And I’ll talk about it in another video why I think that Nextcoin has a better chance to succeed as an altcoin.

In the meantime, I appreciate you guys watching this video. Let me know what your thoughts are and your comments are and what you thought contributed to the fall in the price of Nextcoin in the last two, three weeks and I look forward to seeing you guys in the next video.

And if you want to help contribute to our freedom blog at PrisonOrFreedom.com, please visit our donations page and you can donate Bitcoins, Litecoins, and other altcoins that you want. Until then, I’ll see you guys in the next video.

 

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