NEM, or New Economy Movement (XEM) had huge gains in the past week because of some great news and information that was coming out about this popular coin. One piece of information, however, wasn’t what it appeared to be.
They reported that they had created a NEM app on the insanely popular WeChat system. For those who may not know, WeChat is hugely popular in China, boasting more than 900 million active monthly users.
This news, which was good on its own, was then deceptively hyped by many people holding the coin (presumably). Rather than just saying that the mini-app was made for this platform, they indicated that NEM was working with WeChat to have a built in wallet, and allow people use XEM to make purchases and perform other actions. If this had been true, it would have been an incredibly massive piece of news, which is likely why XEM went up by well over 50%.
On the clarification that was released, the price tanked back down to where it was prior to the updates, and even lower for a time. It has since been jumping around a little bit, but seems to be settling down. While this certainly wasn’t NEMs fault, and XEM is likely a good coin to hold long term, it does show just how volatile the crypto market can be, and why it is so important to be extremely clear on any announcements that are made.