For the majority of 2014, the Peercoin price trended steadily downwards. That changed on September 15, when Peershares (a project based on the Peercoin protocol) developer Jordan Lee announced his team’s secret project, NuBits, would release on September 23. Lee’s announcement, which first appeared on PeercoinTalk, revealed few specific details about the project, other than that it “completely solves the volatility problem cryptocurrencies have experienced.”
Last September I published a preliminary outline of the design for Peershares to the Peercoin community for review. In January,
funding was finalized to accelerate the creation of Peershares and a specialized implementation of Peershares that I had designed. Since then, my team has been working hard every day to bring you this stunning innovation in decentralized finance. As the crypto-economy has experienced a slump in pricing, morale and interest, my highly talented team has consistently exhibited a phenomenal level of motivation and dedication to seeing our vision become a reality. We have worked together quietly until now, but that is about to change.
I’m proud to announce that our product, NuBits, will be available to the general public on September 23rd at 14:00 UTC. Complete details about our implementation will be available on nubits.com. Until then the site will display a countdown.
Our solution completely solves the volatility problem cryptocurrencies have experienced. It does so with zero counterparty risk using a decentralized network. Much of the network revenue will be delivered to shareholders in the form of Peercoins. The network is an exciting advance I am pleased to have the opportunity to unveil.
Peercoin lead developer Sunny King confirmed the NuBits announcement in his weekly developer update.
The Peercoin price surged following the NuBits announcement. For the two weeks prior to the announcement, the Peercoin price hovered around 151,500 satoshis, which gave Peercoin a market cap of ~$16.5 million. From September 13-14, the Peercoin price inclined slightly, almost reaching 170,000 satoshis. But this brief price increase would not compare to the explosion that would take place on the heels of Jordan Lee’s NuBits post.
As the 24-hour CoinGecko price chart to the left indicates, the Peercoin price shot upward at roughly 12:30 am EST, rising to 203,500 satoshis. A brief decline followed, but within 5 hours the Peercoin price had surpassed its previous daily high and continued to rise. This cycle would continue throughout the day, raising the Peercoin price to 238,891 satoshis at press time. Peercoin’s wild ride resulted in a 24-hour market cap increase of 39%, vaulting Peercoin to a $24.3 million market cap and a 7th-place ranking among all cryptocurrency market caps.
Traders may be tempted to invest in Peercoin, either to make short-term gains as the price rises or because they believe NuBits will increase Peercoin’s long-term market cap. However, investors should exercise restraint and careful consideration before centralizing their investments in Peercoin.
The announcement of NuBits is exciting, but Peershares has revealed nearly nothing about the project yet. It is impossible to make an informed investing decision about a project one knows no details about, and investing on pure speculation presents incredibly high risk to investors. During exciting price-upswings such as Peercoin’s, novice traders tend to become caught up in the hype and cease to think rationally about their investments. Unfortunately, hype does not often translate into sound investment strategy. Investors should proceed with caution until Peershares reveals more about the project.
Disclosure: The author does not have any Peercoin holdings or affiliations.
Featured image from Shutterstock.