XYO (CCC:XYO-USD) is a cryptocurrency operating on the Ethereum (CCC:ETH-USD) blockchain. XYO has a current supply just under 14 billion tokens, with nearly 13 billion in circulation. As of Nov. 29, 2021, the price of XYO is $0.05406, multiple times its value in early Jan. 2021 of $0.0002288.
Investors in XYO have been rewarded extremely well in 2021. What you should know about XYO now?
What Is XYO?
“XYO is a decentralized network of devices that anonymously collects and validates geospatial data, or data with a geographic component.”
XYO has a mission to “Facilitate education, research, and continued development of the XYO Protocol to increase understanding of the public benefit of an incentive-driven geospatial location network.”
XYO Now Available on Crypto.com
XYO is now available on the Crypto.com app and Crypto.com exchange plus FMFW.io. According to Coinbase (NASDAQ:COIN), XYO is also available on Coinbase Exchange, KuCoin, Gate.io, HitBTC, and ZT. Why am I mentioning where you can trade XYO? It all connects to one word, value.
Some of the key factors determining the value of a cryptocurrency include Node count, rising demand, mass adoption, inflation hedge against fiat currencies, production cost and regulation. Another key reason that I love and explains the value of altcoins perfectly: “the big reason altcoins have any value at all is because of marketing.”
Marketing is the art of making consumers (and investors) want something that they normally wouldn’t consider at all. Luckily, there are many cases where the wants and needs of consumers align with marketing and advertising. People then buy, try or invest in a product that is useful.
In this respect, XYO has an emphasis on one factor that I value a lot, utility. In fact, utility is one of the key factors to assess any altcoin according to Binance.
5 Factors For Assessing Altcoins
The five key factors for assessing an altcoin are:
- Developers and Support;
- History and Reputation;
- Volume; and
XYO has plenty of function, is improving its accessibility and according to data from CoinMarketCap, its trading volume is up more than 196% over the past 24 hours, as of Nov. 29, 2021. So in three out of five factors mentioned above, XYO seems to have traction.
Partnerships and Real-Word Problems
XYO needs industry partners in order to drive usage of its protocol. Right now, that list of industry partners comes with some well-known names and some that I do not know at all. Regardless, the company’s list provides important information on these partners’ real-world solutions and case studies.
XYO itself states that “One of our latest partners aims to solve human trafficking and safety in the Baja California region.”
Other important solutions and business applications for XYO to solve include airports, hospitals, ecommerce, insurance, national security, rental cars and drones.
For airports specifically, XYO mentions that “The XYO Network can provide independently verified location data that can help minimize luggage mishandling and can ultimately save travelers and airport staff time and money spent trying to track down missing baggage.” Any traveler who has lost a suitcase and gone through the frustration and anxiety of getting it back in the past will probably think that this utility of XYO adds value.
Would I invest in XYO? Honestly no, for the following reasons. XYO has a market cap of about $678 million. I think that is too high for its current level of adoption. I want to see more partnerships, and for case studies to turn into real applications.
I see a lot of potential for business applications for XYO. It has utility. The strong rally of its price in 2021 though does not justify its real adoption in the business world. I would not buy XYO now but would keep an eye on it for more exciting partnerships.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Stavros Georgiadis is a CFA charter holder, an Equity Research Analyst, and an Economist. He focuses on U.S. stocks and has his own stock market blog at thestockmarketontheinternet.com/. He has written in the past various articles for other publications and can be reached on Twitter and on LinkedIn.