What Is NEM Crypto (XEM) How It Works & Where To Buy It?

NEM is a blockchain that has been around since 2015. XEM is the native digital asset of the NEM network and plays an integral role in the functionality of the network.

NEM is a smart asset system and blockchain platform that utilizes a novel consensus algorithm. The NEM blockchain was forked in 2021 by a group of developers who are not known to the public.

XEM is the native token used to power the NEM Blockchain – XEM is currently the 90th largest cryptocurrency by market capitalization.

How NEM (XEM) Works

The NEM (XEM) claims to be a “New Economy Movement“. It aims to bridge the access of blockchain assets for enterprise clientele. Essentially, companies play an integral role as the missing link that will join private and public blockchains. This will bolster these particular networks and increase the expansion of usability.

NEM (XEM) achieves the efficiency of the NEM network through the innovative integration of new technologies. The blockchain has proved to be versatile and innovative and has introduced a novel new consensus mechanism – Proof-of-Importance (PoI).

The key difference between PoI and other consensus mechanisms such as PoS or PoW is what makes the project incredibly appealing to many members of the crypto community. Essentially, in a PoI mechanism, the NEM blockchain network takes into account the time as well as the amount a particular person has invested.

PoI in Action

The PoI algorithm requires users to have 10,000 XEM vested within the system before they qualify to generate new blocks. Users that participate in block generation are given incentives, typically a portion of transaction fees generated by the NEM ecosystem.

Users are required to vest their XEM on the smart asset blockchain, where they will be rewarded up to 10% per day if they hold XEM tokens in the native wallet. Essentially, as new tokens vesting rewards are accrued, the user becomes eligible for block rewards once their XEM amount reaches 10,000.

The PoI consensus algorithm is innovative in that it rewards users who make transactions with others in the network. The users’ PoI score is adjusted according to the transactional data that is gathered. As the NEM price (XEM) appreciates, users are earning generous yields for vesting their tokens. In the same fashion, users still earn more XEM coins; even if the price depreciates, it’s irrelevant because users are accumulating more XEM coins.

What Is NEM (XEM) Used For?

XEM tokens are essential in the facilitation of processes in the NEM ecosystem. XEM tokens are used to execute actions on the NEM blockchain network. XEM stakers are also rewarded with XEM tokens.

XEM is typically used for the facilitation of smart contracts, but the XEM token is also the governance token of the protocol. This means that XEM tokens play a key role in maintaining the network, and holders of XEM tokens receive exclusive voting rights. They can vote on important proposals that affect the NEM network.

XEM was one of the most traded cryptocurrencies for a number of years, and following a major crypto exchange exploit in 2018, the token never fully recovered. The token is still available on most exchanges, but trading volumes are significantly lower.

Where To Buy NEM (XEM) Token

XEM is currently one of the most popular cryptocurrencies on the market. The XEM token was incredibly popular around 2016 when the token price was trading above $1.80 – it’s currently trading at $0.05.

XEM tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase XEM, you’ll need to deposit fiat money onto an exchange; sequentially, XEM tokens will then be credited to your digital wallet on the exchange.

The crypto exchanges below are amongst the safest place where you can buy, sell and store tokens.

1. Gate.io
2. HTX
3. KuCoin
4. Binance
5. Crypto.com

XEM Token holders can transfer their tokens to a compatible digital wallet such as MetaMask.

Additionally, many users can earn generous yields from staking XEM tokens on a wallet that allows them to earn vesting rewards.

About NEM (XEM)

How long has NEM (XEM) existed?

NEM was initially listed in March 2015 and has seen an enormous amount of volatility since its listing. Interestingly, in 2021 NEM was hard forked by a group of pseudonymous developers. The XEM token saw a significant surge during 2021 when the price reached $0.77 but has since seen a decline, along with most other cryptocurrencies.

XEM achieved its highest market cap in January 2018 – when it exceeded $16 billion.

What’s controversial about NEM (XEM)?

Most crypto projects are surrounded by some form of controversy and communities that aren’t aligned with the claims of the particular project. Before investing in any crypto project, it’s important to do as much research as possible on the project.

Let’s take a look at the top two controversies surrounding NEM (XEM):

• Coincheck Hack – Coincheck, a popular crypto exchange, was hacked in 2018. The hack saw more than 523 million XEM coins stolen. At that time, the tokens were worth more than $400 million. The funds were never recovered, and many members of the NEM community lost faith in the project after the incident.
• Will It Ever Dominate? – NEM is definitely seen as an excellent blockchain that can facilitate advanced functionality and handle complex tasks. However, there are a number of other blockchains that are also providing similar solutions.

  The NEM blockchain may have low transaction fees, an energy-efficient consensus mechanism, and a host of other features. But, there are already blockchains like Cardano, Avalanche, and Polkadot that are already providing these same solutions.

How many XEM Tokens are there?

At the time of writing, XEM has a circulating supply of 9.00B XEM (100% of the total supply).

The total supply of XEM is 9.00B XEM.

The max supply of XEM is 9.00B XEM.

Can XEM be mined?

XEM coins can’t be mined in the traditional sense, but rather they can be “harvested”. The harvesting protocol of NEM’s blockchain is an additional value proponent of the project. Essentially users that increase their PoI score then earn more XEM coins – this is calculated according to the data gathered by the NEM network.

Simply put, accounts can borrow PoI scores to complete blocks on their behalf. This particular mechanism/strategy ensures the security of the NEM blockchain without requiring the use of great computational effort.

Additionally, users can take part in a variety of DeFi products that allow them to earn yields on their XEM tokens. Some decentralized exchanges allow users to earn yields from staking, farming, or providing liquidity provision with their XEM tokens.

What is the market cap of NEM (XEM)?

The market cap of NEM (XEM) is: total amount of coins in circulation x current market price of XEM.

NEM (XEM) Market Cap = 9.00B XEM x $0,05 = $453 million (90th largest market cap).

Stacks is currently one of the top 100 cryptocurrencies by market capitalization and continues to be a project that is seeing rapid user adoption.

Biggest Competitors Of NEM (XEM)

NEM has established itself as a unique and innovative blockchain protocol. However, the crypto space has an array of excellent blockchain protocols that are providing users with very similar solutions to NEM.

The most unique aspect of NEM is its novel PoI consensus mechanism. This has drawn a lot of attention to the project and has grown hype and positivity for the project.

NEM’s Biggest Competitors are:

• Solana
• Cardano
• Ethereum
• Polkadot
• Avalanche

What Are The Future Plans For NEM (XEM)?

The NEM Foundation has announced it will continue to meet the user demands and try to ensure the most optimal way to extend the capabilities of its blockchain – allowing users to benefit from a more versatile blockchain.

NEM introduced recent upgrades to the network and has also continued to drive the growth of its NEM community.

NEM’s future is dependent on how well the project can accommodate users, meet the necessary demand, as well as continue being as innovative as possible in the years to come. The NEM platform has the potential to become a prime project in the next few years if it can maintain its momentum.

Pros And Cons Of NEM Blockchain and XEM Token

Pros:

• Enhanced Functionality – NEM has a host of functionalities that consistently improve and optimize the blockchain. The enhanced functionality is a unique value proponent that has yet to be realized by competing projects in an efficient and scalable way.
• Novel Consensus Mechanism – NEM has a novel PoI consensus mechanism that differentiates it from many other blockchain protocols.
• More Energy Efficient – NEM doesn’t utilize a proof of work consensus mechanism that requires extensive amounts of computational power. Instead, NEM’s blockchain uses the PoI consensus mechanism that is far more energy-efficient.
• Vesters Are Rewarded – Vesters of XEM tokens are generously rewarded for their contributions to securing the network. XEM vesters receive 10% daily rewards and are eligible for block rewards once they have 10,000 XEM tokens.

Cons:

• Suffered A Hack That Affected The Project – In 2018, one of the well-known crypto exchanges called CoinCheck was hacked. The hacker made off with more than 523 million XEM coins – at the time, those tokens had a market value of more than $400 million.