Nano is a 2 year old project that aims to outcompete bitcoin and litecoin (and others) and be the globally accepted payment coin. Easier said than done.
Nano had a meteoric rise in last year and even though it is very low right now in comparison to its all time high value, it still outperformed bitcoin by a whopping +1117% in the last year according to the data from Onchainfx.com. It is also up in USD terms by another 350% for the year. Seeing those numbers, one might think that everything is joy and happiness in Nano community, which is not the case. How come?
There is still a huge portion of Nano community that is extremely unsatisfied with how the coin performed on the market in this year.
Aforementioned numbers don’t take into an account one important metric and that is entry point for majority of Nano hodlers. At its peak back in January 2nd, NANO was valued at $33.49 according to Coingecko data and a lot of buyers entered their Nano positions somewhere in the $20+ per coin zone. Seeing the coin at $1.10 right now gives you a logical explanation as to why many of them are so disgruntled.
What you'll learn 👉
Nano appears to be dropping faster than other coins on the market
That is at least the perception of parts of Nano community. When we look at the numbers, that perception reflects the truth pretty accurately. Nano has dropped by 64% in the last 90 days which makes it 89th worst coin out of the top 100. So, only 11 coins performed worse than Nano in that time frame.
What could be the reasons?
One often cited reason is the initial distribution of Nano coins – many of the holders received their coins for free in an airdrop so they are profiting whenever they decide to sell.
Another reason is relatively low market cap that in combination with low volumes leads to big slumps in price whenever there is some bigger selling pressure.
Another reason is the short time period that saw Nano rocket from couple of cents per coin to $34 and a lot of early buyers could sell pretty much all the way down from those heights while still staying well in the green.
The blemish of BitGrail scandal and hack that saw $150 million+ of Nano coins lost is also still fresh in the minds of crypto holders and many ran for the exits quicker than Usain Bolt.
No marketing mantra
Nano is notorious for its lack of marketing campaigns and effort. However, this strategy of no marketing could actually prove to be good choice for the bear market as Nano needs broader and more robust infrastructure rather than hype and empty promises. The goal is to make Nano simple, seamless and easy to use, available on as many ecommerce and other platforms as possible, before launching a comprehensive and holistic marketing campaign.
Nano is fundamentally very sound project
Nano is the meat & potatoes of what’s the most critically important features of a cryptocurrency. Fast & feeless transactions.
Nano is a payment coin. That’s all it focuses on and it’s probably the most effective payment coin on the market. It’s is literally instant if you send it to and from a nano wallet and totally free. It’s perfect for arbitrage.
Nano solves the problem of being scalable, decentralized and secure by being the first crypto to use DAG based block-lattice architecture that doesn’t suffer from the same protocol based limitations other legacy blockchain based solutions use.
Focusing on being only a currency has also the strengths of being extremely lightweight (transaction fits to 1 UDP packet) and not having to clog the network with projects like cryptokitties.
While Nano does have the infrastructure needed to be a functional cryptocurrency (including merchants, exchanges, payment processors, software wallets, hardware wallets, gambling and betting and games), clearly many other projects have the same/are on their way to achieve the same. Nano is probably one of the most usable coins right now but they need to work on other aspects of their projects as well, not only the technology field. Marketing and building relationships with big players from ecommerce and retail industry is the next task for the team.
Therefore this probably won’t be enough to make Nano a commercially accepted crypto solution, for now at least. Still, there are arguments that Nano is undervalued at the moment, especially if you consider that projects like Bitcoin Gold or Verge are currently above it in market cap. If/when the long-awaited alt season greets the cryptosphere with its divine presence we should expect to see Nano as one of the stronger beneficiaries of it.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com