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Why is XPR Coin Plummeting (Why is XEM Coin Plummeting)?

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Why is XPR Coin Plummeting? There are several reasons for the sharp drop in XPR

Why is XPR Coin Plummeting (Why is XEM Coin Plummeting)?

Why is XPR Coin Plummeting? There are several reasons for the sharp drop in XPR Coin price.

Firstly, the value of XPR tokens is too high to facilitate trading on exchanges. Secondly, it lacks the same level of security and reliability as traditional securities markets.

Due to insufficient liquidity and security to back the assets of its issuing party (such as USD, EUR, etc.), it is vulnerable to hacking attacks, leading to massive sell-offs and pressure. This has caused a significant decrease in XPR’s price by 60%-70%. However, the supply of XPR is very limited, currently with only about 21 million XRP. Why is XPR Coin Plummeting? Initially, we thought Bitcoin was the gold, but now it has suddenly turned into a Ponzi scheme (e.g., Ethereum). However, if Bitcoin does successfully become the world’s largest financial system, its market value could reach $10 trillion, or possibly exceed $1 million, as it is much larger than any other currency. Therefore, I believe that most people in the crypto world simply do not trust this project, and Bitcoin itself is not a perfect product and has never been fully developed. This means it cannot be used as a means of payment like precious metals but can be used as a medium for exchanging commodities or as collateral.

However, when Bitcoin becomes too powerful, people start using it as digital gold. But in the coming months, with Bitcoin becoming more popular, more funds will flow into Bitcoin, increasing demand. On the other hand, it is a disaster for those who hold Bitcoin because they can sell all their gold bars anytime, anywhere. Therefore, many investors have abandoned their investment portfolios and turned to buy more Bitcoin or choose to continue holding it. So, while Bitcoin remains a good hedge against inflation, there may be a more stable market in the future.

In addition, some companies are considering creating their alternative solutions to reduce risks. For example, Ripple recently announced the launch of a new decentralized application called XPro based on Ethereum. The protocol consists of three parts: the first part is access to certain specific functionalities in the network, allowing developers to build various applications and bring them to the new platform. The second part provides power to the blockchain. The third aspect is for DeFi protocols.

The codes for these projects are all open-source, including Ethereum Classic, Stellar, and Polygon; the fourth part is for decentralized cross-chain interoperability solutions.

Despite this, XPR’s price has been steadily rising over the past few weeks. In the last hour of May 14th, XPR’s price increased by 10%! This trend continued for most of April until today, and it has not stopped.

Why is XEM Coin Plummeting?

Editor’s Note: This article is from the Fenghuolun community (ID: FHBT18), written by Peipei, authorized for republishing by Odaily Star News.

Hello everyone, I’m Peipei. Today, the price of XEM Coin suddenly plummeted. Why is this token going crazy? Let’s discuss what’s going on with it. Its price has been declining recently. It has been hovering around a low position of 1 to 2 US dollars. In the past week, XEM has dropped out of the top ten and even dropped by more than 50%. But this time, it dropped to zero. Of course, there is also a problem here: the XEM project introduced various “mining rewards” to attract more users and capital inflows, which made some people unfamiliar with the project not adapt well.

First of all, there are many people in the market who regard XEM as a shady cryptocurrency that is not well-known. If it is regarded as an air coin or a scam, there must be some truth to it. For example, in August last year, a friend left me a message saying that I bought some ERC20 tokens on the Ethereum network and exchanged them for RCT coins. At that time, I also wanted to cash out my ETH, but unexpectedly, it was pumped up to more than 30 USD. I even bought some EOS as collateral. After that, I started to study these assets, and then I looked at their contract codes and found that they were not as secure and trustworthy as they seemed, and they had not undergone any audits. So I didn’t write any specific technical proposals but tracked market conditions and risk control measures, including the existence of major issues that could affect the platform.

If we can know what the company behind XEM has issued, can we understand it as a cryptocurrency similar to Bitcoin? The answer is no, there is no such company.

According to official tweets, there are four functions in the XEM ecosystem currently, with the most important one being token holders needing to convert their ETH holdings into another token in the XEM Composite, which ensures its stability and also prevents investors from losing their entire investment portfolio due to transaction fees or other costs, thus reducing potential losses.

However, for those participants, it is unnecessary to purchase any products that are essentially related to the blockchain, such as tokens developed based on public chains like XEM, which can also be used to pay for network operation and maintenance costs, operational nodes, etc. In addition, the XEM team itself has some administrators responsible for formulating software upgrade plans and updating the XEM protocol’s functionalities, such as staking, which means that as long as you have an account, you can withdraw your funds at any time. This also allows everyone to make deposits and withdrawals of XEM on exchanges without using exchange APIs, just a few clicks.

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