What is the NEM Foundation Crisis Coverage? 2019 NEM Latest Information!
In 2019, there was movement on NEM. Especially impressive is the report of the NEM Foundation crisis. In fact, the market was also greatly affected. On the first day after the news, XEM’s total market value declined by nearly $65 million.
What is the actuality of the situation? Let’s take a closer look.
Facts of the crisis report from the NEM Foundation!?
The crisis report for the situation where the word “bankruptcy crisis” occurred as a result of the Coin Desk reporting on January 31st. Afterwards, Alex Tinsmann of the NEM Foundation tweeted out against the NEM Foundation’s crisis report explaining in detail on the part of the bankruptcy news report, resulting in the situation gaining convergence in opinion.
The fact was the current situation was being confirmed from a third party in reducing the number of personnel not necessary for transferring management from the old system to the new system and to reduce the number of XEM amount given to the people belonging to the foundation monthly. It is recognition that the story is being rumored by media.
In addition, as for this news, there is a point that can be taken as good market material. Distributions equivalent to 9 million XEM monthly from the NEM Foundation is distributed to active foundation members through XEM payments. It seems there was not a lot of selling pressure from the foundation for XEM when the amount was reduced. Therefore, it is highly thought that the possibility in selling pressure of XEM will decrease.
Also, if the activities of the NEM Foundation are transparent and focus more on NEM’s promotional activities, there is the possibility of dissemination and improvement of NEM’s awareness leading to a positive image of XEM. However, as we will see later, although the NEM Foundation is not directly related to the development of NEM or NEM itself, they definitely have an influence and impact on the market. Even in the old system, the organized NEM Foundation is large, and it is necessary to stop the trend and be cautious as there are parts that cannot be assured the internal system will be clean in future.
What is the NEM Foundation in the first place!?
I think the NEM Foundation has become famous for this news report, but what is the NEM Foundation’s name? In conclusion, it is a gathering of people who do marketing. As part of marketing, it is becoming an organization that provides financial assistance and public relation aid to people who are planning NEM related projects.
Initially the NEM Foundation was not involved in NEM’s core development. It also does not provide funding to core developers. Therefore, even if failure of the NEM Foundation actually occurs, it would originally not even have been related to the price of XEM.
However, currencies and incidents are said to be multiplicity factors, and this time it is considered that the market has actually declined greatly with thoughts that selling stemmed from the NEM Foundation = NEM (XEM).
I would like to summarize and make the point that the NEM Foundation is not representative of NEM and its development.
About the SN depletion problem occurring after 2019
Between 2018 and 2019, we talked a bit about the problem of SN (supernode) depletion, so I’ll discuss it as a possible problem in the future.
A detailed explanation about NEM’s supernode is not mentioned here, but a node with high-performance and a vital infrastructure role in the NEM blockchain adopting PoI with a consensus algorithm, is called a super node. The rewards for those that make up that node is called a SN reward.
Calculations have come out that rewards for this important SN will soon be exhausted. People who set up SNs have nodes for SN rewards, so depending on the future trend of this fee, will some people disassemble their SN? This could cause for anxiety.
Although it seems that some announcement will be made in the future, SN rewards will be around until mid-August of 2020.
What is the NEM Foundation crisis coverage? 2019 NEM latest information! Summary
Regarding the crisis report of the NEM Foundation, the truth is that the NEM Foundation, which is not related to the development of NEM, originally said that some media used the expression of the Foundation’s crisis as a reformative move to dispel the bad points of the old system with the new regime. It was a story where the market capitalization of XEM plummeted with the spread of a negative image through this news report.
I am closely watching how the future work of the NEM Foundation will become, but as for the remuneration of Super Nodes, it will be depleted as in its current state during 2020. It seems as if things can change at any moment.
Although NEM has many problems at the present stage during 2019, the NEM blockchain is superior to many other blockchains in certain aspects, so in the case of investing in 2019 and 2020 let’s keep track of this information and seek good opportunities.