Not Much News To Justify XYO’s 2021 Value

It’s been about 10 weeks since I last wrote about XYO (CCC:XYO-USD) at the end of September. At the time, it had a market capitalization of $360 million. Today, it has shot up to to $432.8 million and is closing in on CoinMarketCap.com’s Top 100, currently sitting at the #148 rank.

A concept image of the XYO cryptocurrency logo displayed over a map of the Earth.

Source: karnoff / Shutterstock

I believed back then that the XYO Network Foundation’s blockchain network had merit, given its focus on validating geospatial location data. The possibilities were, and still are, enormous.

However, I suggested that crypto newbies, myself included, should study XYO further before jumping in. While my recommendation might have caused some people to miss out on a six-week double, I don’t care.

My job, as I see it, is to help people become better investors. Telling individuals to risk their hard-earned capital on a whim isn’t my style. Never was, never will be.

That said, I still remain intrigued by XYO. Here’s why.

Riding Along With the XYO Evolution

One of InvestorPlace’s most enthusiastic commentators when it comes to cryptocurrencies is Mark Hake. I don’t think there’s a crypto he hasn’t liked to some degree.

Unlike Mark, I’m a little leerier. But, in this context, I’m from Missouri — not literally — you’ve got to show me why a crypto has utility and matters.

My colleague’s most recent commentary about XYO was Oct. 20. He discussed the platform changes that would push the price of an XYO token higher. Specifically, it has to do with XYO 2.0.

“Moreover, Arie Trouw — the CEO, CFO and founder (among other titles) of XYO Network — recently wrote on Sept. 28 that he was planning to announce an XYO 2.0 platform,” Hake wrote in October.

“Trouw indicated that the platform will have two purposes: to increase the network’s partnership with COIN and also to provide key technology for third parties and potential partners.”

The XYO CEO discussed his thoughts about 2.0 in a Sept. 28 blog post. Interestingly, the CEO pointed out that XY Labs, the people behind the network, made a profit of $3.8 million in the first half of 2021.

That’s impressive.

He cites examples of what people have been able to do as a result of their winnings from XY Labs’ COIN App, including one person paying off a 30-year mortgage.

While nice, that’s hardly an example of the XYO Network’s actual utility. Not by a longshot. However, there’s no question the network is gaining traction with investors.

The Network’s Q2 June Update

According to XYO Network’s second-quarter update in June, it is creating both the XYO Data Protocol 2.0 and XYO Network Protocol 2.0.

“The Data Protocol covers Bound Witnesses and Proof of Origin chains and the Network Protocol covers the Sentinel, Bridge, Archivist, Diviner systems,” states the Q2 update.

“It is important to think of these two systems independently, specifically because it is possible to see future implementations of our technology using only one part of the full system.”

The CEO finished the update by stating that its profitability will enable it to continue developing products for a decentralized world.

Where To Go From Here With XYO?

I think we’ll learn more as we wind down 2021 and move into 2022. But, I must admit that all the talk about its COIN app has me considering taking a closer look.

But from where I sit, not much seems to have changed regarding XYO since its June Q2 update and its more recent comments since the end of September. And yet, XYO-USD has appreciated by more than 613% in less than five months. Now, as I write this, it trades near 3 cents.

I suppose one could argue that the Oct. 7 announcement that XY Labs is partnering with tZERO to digitize XY Labs’ Class A common stock to trade on tZERO’s alternative trading system (ATS) indicates XYO is playing in the real world and not some other dimension.

While I won’t recommend XYO just yet, that doesn’t mean aggressive investors shouldn’t give it a whirl. If I change my mind, you’ll be the first to know.

On the date of publication, Will Ashworth 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.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. 


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