Why NuBits Factor Didn’t Work for Peercoin Market?

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Why NuBits Factor Didn’t Work for Peercoin Market?

ForexMinute.com – Imagine you invest in a company while awaiting the release of its grandest project. There is indeed a larger chance that you’ll go home with profits once the project is completed, and released. But on the day of release, you notice that the actual project was to create yet another company, with its own stock value, separated from the stocks you bought initially. How will that help your investment as a whole?

Last week, something similar happened inside the cryptocurrency market when Peercoin developer Jordan Lee released its much awaited stability-offering project NuBits. The information of this whole venture was kept secret until its release date. Indeed, the hype that surrounded it was phenomenal. Investors flocked in to buy Peercoin at a low, hoping to churn out huge returns after the release. But what surprised, and shocked everyone is the fact that NuBits was exactly a cryptocurrency, not a platform which we all were expecting it to be.

The present analogy dictates a complete disconnection between Peercoin value and NuBits project, a reason why the former fell over 25% after the latter’s release on September 23rd this year. When the information of NuBits not being an altcoin wasn’t public, the PEER/BTC was consolidating between a stable trading range of 385,202 and 365,978 satoshi. Upon the revelation, the pair fell to as low as 244,805 satoshi. Even though it was supported by a notable margin in later hours, but the investors’ bad mood was clearly visible throughout the day.

On the other hand, Peercoin developers were praised for bringing world the first-ever stable cryptocurrency. Undoubtedly, the new coin could pose competition to its very own brother Peercoin. But there is indeed a strong interrelation between both of them. Reportedly, Peercoin will be used as the payment medium within the NuBits network to buy NuShares.

We will keep you updated on this news.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

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  • john doe

    Nubits is good for the Cryptocurrency scene as a whole and works as a hedge, benefiting Peercoin the most. A 400% gain in a matter of days is undoubtably going to lead to a drop on the news.

    In Peercoin, the amount of selling pressure due to Proof of work mining is approximately 2k USD a day, Litecoin has approximately 500k USD of selling pressure through POW mining a day, and Bitcoin has about 1.2 Million USD of selling pressure from POW mining a day.