It has gotten that way through the ubiquitous Coin app — which is not related to Coinbase Global (NASDAQ:COIN), the crypto exchange. The mobile app allows its users to earn rewards and digital assets, including XYO tokens.
Coin users contribute to XYO Network by “validating geospatial location data when traveling, commuting, jogging or moving about the real world while interacting with each other.”
Now that the app has more than 3 million nodes on mobile phones, the network believes it can be useful for large corporations. The backers of the network said that it is “large enough, strong enough, and active enough to provide incredibly valuable data to large, corporate parties.”
That coincides with its stated mission: “…to increase understanding of the public benefit of an incentive-driven geospatial location network.” In other words, providing 3 million nodes worth of data — including geolocation, temperature and speed — to third parties might be useful. They might have an interest from an advertising, research or education standpoint.
Getting Clients Isn’t So Easy
The XYO Network presents several cases where their nodes and the Coin app could come in handy for a number of industries. For example, airports could benefit by tracking luggage using XYO nodes. Hospitals could also use XYO tracking for equipment or patients. Finally, it is also helpful in e-commerce or insurance for cars, mobile phones and more.
The problem is the XYO Network hasn’t announced any such deals. They are only just now starting to develop such commercial opportunities. It may take some time for a very large deal like those examples to come together.
This might signify that investors believe the network will snag a number of large corporate sponsors. If that happens, expect to see XYO move significantly higher. This means investors have hope in the functional utility of having 3 million-plus nodes or apps.
And don’t forget most Coin users that have downloaded the app expect to earn large rewards for the hassle of using it. It’s not completely passive income, though. Most of the users have to refresh or update their location every 90 minutes or so.
Where This Leaves XYO Crypto
XYO was recently listed on Crypto.com, one of the largest crypto exchanges. The site says it is one of the fastest-growing exhange platforms for digital coins and tokens in the world, with 10 million users and more than 150 cryptocurrencies. XYO is also now listed on Coinbase Global (NASDAQ:COIN), which is a very large cryptocurrency exchange.
Right now XYO is ranked as the 125th largest cryptocurrency in the world, according to CoinMarketCap. As such, it had a market capitalization of $601 million at a price of 4.68 cents per XYO token as of Nov. 18. As of yesterday, XYO crypto has risen 40% from 3.52 cents on Sept. 18.
And as I have pointed out in the past, these geominers don’t really make all that much in terms of rewards. My conclusion from watching testimonials from a number of geominers is that it takes a long time to earn 10,000 token rewards per month.
On average, those were worth less than $5 per month. That is not going to keep 3 million nodes active and refreshed for very long. The company is going to have to do something to up those rewards in order to keep the interest of its Coin app users.
It may take time for XYO to gain corporate users for its network. That means the crypto could take time before it rises significantly from here.
On the date of publication, Mark R. Hake did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.