NuBits launched on September 23 with the goal of creating a currency with a stable price. NuBits accomplishes this by adjusting the coin supply to match investor demand, rather than letting the markets control the price.
NuBits debuted fairly high on the coin market cap charts, and though the sample size is incredibly small, the NuBits market cap has remained steady so far.
Although it is far too early to declare NuBits a success, the coin had a smooth launch and has attracted a respectable amount of capital. CoinMarketCap first listed the NuBits market cap on September 26, and the coin debuted at $2,041,663. Over the majority of the next two days, the NuBits market cap did not fluctuate more than $15,000. On September 28, NuBits experienced a brief bump to almost $2.2 million.
However, within 5 hours the coin’s market cap had dropped back to ~$2,015,000. The NuBits market cap remained on the lower end of the spectrum for the next 24 hours, dipping as low as ~$1,983,000. But the NuBits market cap rebounded on September 29 and has mostly fluctuated between $2,040,000 and $2,050,000 over the past two days. At press time, the NuBits market cap had risen to $2,056,183.
NuBits’ market cap places it 19th among cryptocurrency market caps, an impressive feat for a new currency. At press time, NuBits had a 24-hour trading volume of ~$66,000, the 11th-highest among all coins. It will be interesting to see how many NuBits holders keep their holdings liquid and how many choose to “park” their coins to build interest on their investments.
As observant readers will notice, CCN analyzes the NuBits market cap rather than its coin price. Generally, the best way to measure how an altcoin is faring is to track its price over time, using bitcoin as a conversion factor (or litecoin if the coin price is less than 1 satoshi). Examining the dollar value of a coin’s market cap can distort this picture, because altcoin market caps are tied to bitcoin price fluctuations.
However, traditional altcoin price analysis methods do not work for NuBits. Because the NuBits price is pegged to the dollar at a $1 to 1 NBT ratio, the price will not fluctuate based on increasing or decreasing demand. Instead, the coin supply will increase or contract to maintain a $1 valuation. Thus, NuBits is the rare case where tracking the USD value of the coin’s market cap presents the most accurate picture of how the coin is faring.
Disclosure: The author does not have any investments in or affiliations with the coins listed above. Any advice contained in this article is solely the opinion of the author. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from Peershares and Shutterstock.
Last modified (UTC): October 1, 2014 14:32