There are a few reasons to at least consider investing in XYO (CCC:XYO-USD). The first is that it has heated up over the past year. XYO is one of those coins that traded at fractions of a penny not long ago, but has since become worth multiple pennies.
A year ago it was trading at $0.00029. It has since risen to $0.07 in value. That’s a 24,000% increase, a surge that is bound to raise eyebrows.
But, as Shiba Inu (CCC:SHIB-USD) and Dogecoin (CCC:DOGE-USD) have proven, usefulness is king. Without it, cryptos’ main catalysts are fans who attempt to will their favorite coins to higher prices without any real, fundamental rationale.
Thankfully, XYO does have a purpose.
The XYO network is a collection of devices that collects and validates geospatial data.
But here’s an explanation in English. Basically, the XYO network consists of physical devices including cell phones or the company’s SentinelX devices. When these devices, which XYO calls sentinels, are near each other, they broadcast signals back and forth to each other.
The signals create proof that a device is located in a certain area, and that evidence is recorded to a blockchain. That proof does have real-world applications.
Using XYO for Logistics
XYO provides a hypothetical example of its utility in the field of logistics. Typically, when goods are transported from Point A to Point B, signatures confirm the arrival of the goods in each location.
But if there are instead designated devices at these locations, they will automatically record information about the locations of the goods. So XYO can produce automated confirmations that replaces a series of human-dependent signatures.
Based on what I’ve just explained, it shouldn’t be surprising that XYO has partnered with multiple companies, including FedEx (NYSE:FDX).
But the XYO network also has more altruistic applications.
XYO is utilizing its network to develop a humanitarian application called Mujer Segura or safe woman.
XYO’s app is available on the Google Play store and can be used in the Baja California region of Mexico. The app is part of a pilot program which “allows a woman who is in a state of distress to quickly ping an alert out to a list of loved ones. This list can only be added by the user and anyone on this list is quickly alerted through an app notification as to the last location when the alert was initiated,” XYO explained.
The project could make a positive impact. If the data collected from the pilot proves that it can help women in danger, the app should become quite popular. Although, as I noted earlier, the pilot is currently limited to Baja California, it can probably be quickly and easily applied to a much larger area.
It isn’t hard to imagine, for example, that delivery drivers might not like being tracked by XYO’s sentinels. I’m sure many of the drivers would refuse to download the app onto their personal phones. Many others would not like the idea of transporting a sentinel with their trucks.
The counter argument is that we can probably be tracked already. That assertion may indeed have merit. But that isn’t going to sway everyone, so XYO certainly has hurdles when it comes to privacy concerns.
The Bottom Line on XYO
I think that XYO is only marginally interesting at this point, as It hasn’t really achieved anything noteworthy yet. It did hit a milestone when it was added to Coinbase (NASDAQ:COIN) in September. And while that is laudable and caused its price to spike, it won’t sustain the network forever.
I’d wait for more conclusive proof of the network’s usefulness before investing in it.
On the date of publication, Alex Sirois 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.