Verge (XVG) had a strong run on its partnership rumors, going from 0.04 USD to 0.11 USD in a matter of days. Now that the mystery partner has been revealed as MindGeek and Pornhub things have cooled off, in the time-honored tradition of “selling the news”, the revelation was met with a drop to 0.06 USD. At this time, Verge (XVG) has been floating at that price point for about a week now, it’s many adherents insisting this is just the calm before the storm. They are right, it is definitely the calm before the storm, the real question is “once the storm breaks which direction will the price take?”.
The bull case one could make for XVG is somewhat strong. The mere fact it is advertised on Pornhub, to it’s 64 million visitors a day, means it is getting massive exposure to potential customers. That is a pretty big deal and as a step toward pushing adoption, it is certainly welcomed.
There are also rumors of a debit card in the works, based on hints dropped from Verge (XVG) partner Tokenpay (T-PAY). If an XVG debit card emerges, and it proves a viable payment method, this furthers the adoption argument and would cement XVG as a driver of crypto to the mainstream.
It seems like XVG wants to guarantee it’s liquidity in the future. Now, partnerships and exposure are strong for sure, but they aren’t everything, there are many factors at play here, and unfortunately use cases and availability alone don’t translate to a higher price point.
This brings us to the more bearish possibilities. One major problem Verge (XVG) has to contend with is supply. A total supply of 16,555,000,000 coins is pretty large and there does not seem to be any plans to implement a burn protocol to reduce this number in the future. Right away, that is a big problem for investors as it will take a massive volume to move the price in either direction, up or down.
Secondly, XVG was initially designed as a privacy coin, much like Zcash (ZEC) or Monero (XMR), but there have been concerns and arguments it doesn’t actually offer any privacy at all and worse may, in fact, make its users even more vulnerable. The recent hard fork that was implemented after the network was hijacked could be pointed to as evidence for this through the issue seems resolved for the time being.
Some have even speculated that XVG is just another scam or a coin to pump and dump by its creator through marketing tactics. Considering XVG is in reality just a (very successful) rebrand of meme-coin DogecoinDark it is a hard argument to ignore especially while creator Sunerok’s criminal history is also under scrutiny. Marketing has been the main driving factor for Verge (XVG) and without solid fundamentals or tech that can only last so long. Even it’s the strongest point, it’s use case, is seemingly dismantled easily.
Why would people take the extra steps to buy XVG and then buy porn when they could just use a credit or debit card in an instant? The prospect of anonymity could be argued but somewhere along the line that transaction will be visible. The wraith protocol should have been a solution to privacy concerns, but after several missed deadlines it finally debuted causing little to no impact on performance or price.
For myself, weighing all arguments, even if XVG is successful in its efforts I don’t see it gaining very much in the short, medium, or long term. Inflation will be a big issue and in the best case, if XVG is adopted as a payment method, it will likely remain more or less stable somewhere around or at 10 cents US.
I don’t believe XVG offers any advantages other coins don’t already offer, even as a payment solution, and as a store of value, it doesn’t seem to have any merit. For speculative investors, interest has waned, there are much greener pastures now that the rumors have been sold off.
XVG thrives on marketing and now that the major hand has been played there isn’t much to be excited about. Long story short, scam or not, Verge (XVG) just doesn’t seem to have much of a future after the hype dies down. The bull case is easily eclipsed by bearish points and after a long series of disappointments, it may be finally time to take XVG out back and put the old doge down.
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