Buoyed by the Coincheck refund, NEM [XEM] volumes dwarfed IOTA [MIOTA] as it continues to be the best performing coin in the top 20 today. On the other hand, an optimism borne out of IOTA’s young co-founder Dominik Schiener predicts a better future for the IOTA community. Before we look at how that is panning out, lets recap what’s in the news for these two coins.
What’s in the NEWS for NEM and IOTA?
NEM Coincheck refunds: Could this be bittersweet for NEM?
The biggest NEM news this week involves the Japanese exchange Coincheck and its estimated $420 million reimbursement to the XEM holders who lost funds when the site was hacked in January. It also comes at a time when it emerges that about 40% of the heist has been laundered by the hacker(s). The refunding process began yesterday and indications are that most of those who lost their investment will be smiling all the way to their wallets (bank). Today XEM trades at $0.43 while the pledge by Coincheck was to refund the victims at a rate of around 88.5 Japanese yen (equivalent to roughly $0.83) for every XEM coin.
Meanwhile, reports indicate that EdTech blockchain company Tutellus was switching from Ethereum to set camp at NEM. Simply put, this is great vindication for NEM, as it signals that the platform has what it takes to compete with Ethereum. It may not be at Ethereum’s level, but after the Venezuela crypto, this is welcome news.
IOTA is gearing up for the future!
While comments by co-founder Dominik Schiener may have dominated IOTA news last week, this week has the IOTA community looking forward to something new. It is basically an update to the IOTA roadmap, but the IOTA Foundation prepares its base by telling them to be ready for a revolution. Three things are expected to feature prominently in the update: internet of Things (IoT), the Tangle protocol and project Q. could the optimism about IOTA be a consequence of these? Also worth mentioning is the fact that at a time when Coincheck is refunding victims who lost the $534 million NEM, the IOTA Foundation has also announced that it is “ working on a “Hub #IXI“, which takes care of some of the complexity related to input management for exchanges, wallets, faucets and other services.” It seems like the IOTA platform is destined for bigger things.
NEM [XEM] elbows IOTA [MIOTA] to sit above it
According to data on Coinmarketcap, NEM has elbowed IOTA to climb above it in the cryptocurrency market cap ranking. And it seems to be quickly making ground on Dash and Monero. If the trend continues, NEM should be cracking into the top 10 in a day or two.
NEM’s trade volumes have been nothing but absolutely intense in the past 24 hours, especially after Coincheck began reimbursing victims of the January heist. It’s interesting to note that NEM finally broke the 40 cent trading barrier. NEM has traded over $125 million compared to IOTA’s $25 million. Could it be that a lot of XEM being traded out of there could be those who’ve been refunded by Coincheck and are therefore breaking ranks?
In terms of the market movements, statistics on coinmarketcap.com show that NEM trumps IOTA. The 1h, 1-day, and 7-day charts all show NEM in the green with 2.73%, 18.20% and 23.25% respectively. IOTA on the other hand is in the red in the three price movement charts with -0.02%, -3.56% and -27.56%. So, based on this performance, NEM can be said to be ahead of IOTA. Significantly, NEM overtakes IOTA on the ranking charts with a market cap of about $200 million more than IOTA’s $3.6 billion.
Summary: NEM edges out IOTA in price movements today and probably this week. But long-term, I see both staking a claim in the top 10 coins with fully functioning products.
Remember that these two coins offer different capabilities.
NEM [XEM] is a blockchain cryptocurrency that uses its unique proof of importance (POI) that promotes the use of XEM as a currency, instead of being just a mere store of value. However, its API functionality makes it ideal for smart contracts and decentralised apps.
IOTA [MIOTA], on the other hand, replaces the blockchain technology with its Tangle. The difference is that the blockchain is basically a set of cryptographically linked database, and which to be secure, requires some form of mining or validation. However, the Tangle works slightly different where each individual user is allowed to create their own transactions before broadcasting them onto the tangle.