Over the last 72hours there obviously been substantial market movements. One thing I like to do in a crazy market movement is to look back over 7 day moving price averages of tokens and look to see what tokens (which have a 100million plus market cap, are defying gravity and holding strong against the market.
NXT token has been one of these in the recent days and here are the undercover details as to why we think the reason has been.
NXT is the parent chain (like Ethereum)
Their first main dap on the NXT chain is called ARDOR https://www.ardorplatform.org Ardor seems to have done a great job and have silently skipped ahead of other technologies with reference to network speed. We all know that Bitcoin forked to Bitcoin Cash for this very reason, and the Bitcoin solution of the lightening network does not have a clear end in sight. Also Ethereum (although faster in comparison to bitcoin) also have not pushed through some of the promised daps that are going to speed the network up to handle the crazy ICO influx and people trading kittens.
Here is a quick clip on Ardor
So here is where the deal sweetens and the market it on a run.
In our analysis, NXT is pumping is because on the 28th of December anyone holding NXT tokens (across various exchanges and wallets) they will receive a FREE airdrop of the first ‘child chain token’ called Ignis. The ratio will be holding 1 NXT : 0.5 Ignis.
So what will Ignis do and how will it add value to the ARDOR dap and NXT network?
The Ignis child chain will be fully permissionless and won’t have any restrictions. It will likely be the only child chain in the Ardor network that will retain ALL features of the NXT protocol. Also they key feature these tokens and assets can be traded across chains, which will enable users to directly trade IGNIS tokens for ARDOR or child chain tokens.
So given the above analysis where do we see NXT climb to buy the 28th?
NXT has a total circulating supply of 1 billion tokens and it is already built and functioning.
A comparable blockchain (still in constructions and pre-launch) is EOS. EOS will eventually issue a total of 1 billion tokens and is currently trading between the $8-$13 value.
Given this, could we see a 5 to 10x run up for the NXT token as people onboard with the platform, not only to support their built networks but also to take advantage of the Ignis token drop, only time will tell.