NEM (XEM) took a major hit earlier this year, after one of the biggest crypto exchange hacks in history. The Coincheck hack led to the loss of over $500 million worth of NEM (XEM). This saw NEM (XEM) drop out of the top 10 and lose a significant amount of value. However, it recently regained some of its momentum after Coincheck re-opened trading. But this is all short-term speculation.
For someone looking into Nem (XEM) as an investment, how good is it? What are its long-term prospects? Going by the fundamentals of this blockchain, there is a high probability that NEM (XEM) could be rewarding in the long-run. Here are 3 reasons why.
- The NEM blockchain is easy to integrate
One the reasons why most organizations are slow to integrate blockchain into their systems is that it requires a radical reorganization of their entire systems. This is a disincentive given that existing systems are to a large extent working just fine, in terms of operational efficiency. Blockchain does have its advantages such as security and more transparency, but bureaucracy makes its adoption slow. NEM takes a different approach in order to get to these organizations.
The NEM team built a smart asset system that makes it easy to integrate into the systems of companies in different industries ranging from finance to supply chains. This ease of integration could see the adoption levels of NEM (XEM) rise significantly over time, and drive up the value of NEM (XEM). That’s because it is the native token for the NEM ecosystem.
- NEM blockchain adoption is happening
The adoption of the NEM blockchain in the market is happening. It’s not just speculation. Recently, it emerged that the National Bank of Ukraine was looking into ways of integrating blockchain technology into its systems. According to the director of the department of strategy and reforms at the NBU, the bank can’t stand aside and watch as new trends emerge that can influence Ukraine’s financial system. He stated that,
“Blockchain technology is one of the most interesting and up-to-date areas for experimentation and innovation in both the private sector and public administration, as it can solve a number of issues with information security and confidence in databases and market participants among themselves and in public processes. That is why the team of innovative thinkers of the NBU decided to learn more about Blockchain technology, its features and practical cases of using this technology in business and government agencies, inviting representatives of the Ukrainian foundation to the international Blockchain community NEM for the first internal seminar.”
Other real applications of the NEM blockchain include in the development of potentially disruptive applications such as Luxtag, an application that allows users to create digital certificates to verify the authenticity of real-world assets.
This is an application that could go a long way in fighting counterfeits, and as it grows in usage. As it grows in adoption, it will drive up the intrinsic value of NEM (XEM). In an AMA with the community, NEM country lead for Thailand touched on other real-world applications built on NEM. They include Kind Heaven, KidLetCoin and the Japanese social blog, NemLog. These and other emerging applications on the NEM blockchain are a validation that NEM is indeed here to stay and thrive. This to a large extent guarantees that NEM (XEM) stands in a good position to grow in value in coming years.
- NEM has wide acceptance in Japan, a key blockchain market
Outside of its use cases, even from a speculative perspective, NEM (XEM)’s long-term prospects look good. That’s because it has huge acceptance in one of the biggest crypto markets in the world, Japan. Japan is one of the most responsive countries to crypto alongside South Korea. As such, the moment speculative momentum peaks up again, the Japanese market could significantly drive up the value of NEM (XEM), and reward investors.