Why Investors Should Be Paying Attention to Neblio
One thing that has become clear in the blockchain technology space is that it is essentially a game of networks competing. The term network effect was popularized by social media and tech companies operating in the shared economy space, but it applies just as well (if not more) to blockchain companies.
Neblio as a Development Platform
Moving past the basic “currency” use, many cryptocurrencies have been designed to help power a platform (e.g. Ethereum). Platforms, much like networks, need to attract more users and programmers for it to be valuable. A blockchain is only as useful as it is likely that others will build software on it, because that is where their impregnable “moat” comes from.
The goal of Neblio is to create a secure and distributed platform that supports enterprise applications and services. Often you will find that a platform only accepts one or two programing languages, and by designing their framework to accept 8 different programming languages, there are fewer situations where producers would be inability to participate because they “don’t speak a certain language”. There are other coins that do this (ARK), but it is not currently as good of a buying opportunity.
Platforms Need Skin in the Game
Most protocols either follow Proof-of-Work or Proof-of-Stake consensus algorithms, but you’ll often find that non-currency platforms have moved to Proof-of-Stake because of the investment it brings from users. These users literally have to stake an investment to participate in the platform. This foments long-term belief in the system and brings some stability, therefore making market swings less likely because of the commitment from these “stakeholders”.
The NEBL coin is used to permit the transmission of information and securing of the Neblio network, and as a result, coin holders are rewarded with more NEBL. In order to build applications, they programmers must hold NEBL, which creates a natural demand for the coin.
The network is currently alive and growing. There is a common belief that the “crypto-winter” we are in is the perfect time for developers to build (BUIDL) in peace before crypto blows back up and attracts more funding and hype. In this time, they will be working to remove the complexity of blockchain technology by making it easier to adopt distributed blockchain applications to an enterprise solution.
The Buying Opportunity
As can be seen it the chart below, NEBL is following a slowly building up trend, and for the last month has been testing resistance points at 0.00035 BTC. With some pretty consistent moves in the last few weeks, any push through that resistance could bring NEBL back up to a much higher level (it is mostly empty space above).
It has dropped quite a bit from its local high in November, which is why you would probably want to pay attention if this trend started to reverse itself. On a more fundamental level, your bet is essentially on the utility of the infrastructure from the point-of-view of programmers/entrepreneurs. If they determine NEBL to be a good home for their work, then it would definitely be well-positioned for a turnaround soon.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.