Many people expected the price of NXT coin to skyrocket on January 3rd, 2014 when the source code was expected to be released.
Instead, the price of NXT coin tanked and people started to worry.
I know a lot of people started to panic when the price of NXT coin dropped earlier this month which prompted me to make this video and explain why the price of NXT coin fell and why I don’t worry about it for one minute.
Keep in mind that when you invest in NXT, you are investing in the computer code, the development community, the coders, the new technology in cryptocurrencies, etc.
The exchange is a separate entity that facilitates the buying and selling of NXT. The exchange does not create code or developmental resources to the core NXT source code.
The traders (like myself) are also another separate entity. Traders (like myself) are usually not coders and do not contribute to the development of the core NXT source code either.
Therefore, what the exchange does or what the traders do with NXT has nothing to do with how the NXT source code is being developed.
When I invest in NXT, I’m investing in the code, it’s coders and developers, etc. and not in the exchange or it’s traders. Therefore, I don’t worry for one minute when the price of NXT dropped during launch day.
In this video, I explain the 5 main reasons why the price of NXT fell in the last few weeks and why I don’t worry about it.
Now NXT coin’s original source code, was scheduled to be released on January 3rd.
Many of you guys know that I invest in NXT coin.
By the way, a lot of people in the NXT (NXT coin) community, refer to NXT coin as NXT. For me personally, it’s kind of confusing so I’m going to stick with NXT coin.
Anyway, the cause in the price of NXT coin is due to one significant event.
On January 3rd, 2014, when BCNext was scheduled to release the original source code in the Java language and all the investors of NXT coin expected the price of NXT coin to increase to higher prices.
So on the day before the source code was release, the price of each NXT coin was like 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.
Reason #1 For The Price Fall In NXT
Increase In Trading Cost At DGEX Exchange
The first reason is that the price of the – there’s only one exchange that you can buy and sell NXT coins at, and that is an exchange called “DGEX.com”.
Since they have the monopoly on the buying and selling of NXT coins, they decided to jack up the price because before January 3rd, you can buy NXT coins 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 NXT coins 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 NXT coin 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 NXT coin altogether, which decreased the volume of NXT coins that were being bought and sold on a daily basis.
When there’s no transactions and there’s no volume and there’s no liquidity, obviously, that’s going to cause the price of NXT coin to drop dramatically. And that’s the reason why we saw a 40, 50% drop in the price in NXT coin. So that was the first reason that caused the price to drop since the beginning of 2014.
Reason #2 For The Price Fall In NXT
Increase In Withdrawal Fees At DGEX Exchange
The second cause of the drop in price was that the cost to withdraw the NXT coins from DGEX and transfer to your own account in your own personal wallet or your personal account had also increased.
Before, it was pretty much free, and there was almost zero cost to transfer the NXT coins 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 NXT coins in or out of the DGEX exchange.
The increase in withdrawal fees caused a lot of problems and price of NXT dropped and it’s still stabilizing and trying to find price stability.
The price of NXT coin is still trying to level out and find its natural price.
Reason #3 For The Price Fall In NXT
Increase In Transaction Cost At DGEX Exchange
I don’t know the exact numbers but the third thing that happened was that there were a number of people that had a large amount of NXT coins, and they probably unloaded some of these NXT coins on the day of release of the source code just to benefit from the rise in NXT price and make some short term money from it.
Keep in mind that a large portion of the NXT coin 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 are a small group of people who are looking to make a short-term profit.
They’re not looking at the long-term development of NXT coin. 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 NXT coin down. So that’s expected.
Reason #4 For The Price Fall In NXT
DDOS Attacks On NXT Network
The fourth reason that NXT coin’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 NXT coins on DGEX.com.
So their website is constantly going down because of these DDoS attacks. So that’s another reason for the fall in price of NXT coin.
Why would someone wannt to DDOS attack NXT?
- Could it be a competing cryptocurrency community that wants to see NXT fail so that their currency can succeed?
- Could it be a government entity trying to take down NXT?
- Could it be the banks feeling threatened by the rise of all the alternative cryptocurrencies and they fear NXT because it has an original source code and not a copy cat and has a higher probability of success?
I don’t know the answers but I do know that someone or a group of people are very determined to see that NXT does not succeed.
Reason #5 For The Price Fall In NXT
NXT Coins Have Been Stolen From DGEX
You’ll often see the owner answering questions or concerns there in the forums.
I don’t fully understand this – but supposedly, somebody robbed or stole 800,000 NXT coins from the DGEX 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 bought all my NXT coins through them and sell my NXT coins through them as well.
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 NXT coin price has been falling.
If you’ll notice, it has been leveling it out.
It has been stabilizing around the low 4-cent level, and it seems to be stabilizing there. I don’t know if it’s going to fall lower or if it’s going to shoot back up. I don’t know, but I am happy to see that it’s starting to level out now.
Now since the NXT source code has been released, I think that a lot of people in the NXT coin community and new investors are waiting for the source code to be reviewed and to make sure that it’s kosher (legit) and it’s good and it’s clean and it does what it says.
I’m not a coder so I cannot read the NXT coin 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’d 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, that help contribute to the fall in price of NXT coin helps you out.
Personally, I’m going to hold onto NXT for the long term.
That was the reason why I originally got into NXT coin. So I’m not going to let the 40 or 50% drop in price deter me from the long-term outlook on NXT coin 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 alt coins are copycat coins. To me they’re very lazy people. And I’ll talk about it in another video why I think that NXT coin has a better chance to succeed as an alt coin.
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 price of NXT coin 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 alt coins that you want.
Until then, I’ll see you guys in the next video.