The insurance industry has a capitalization of $4.3 trillion; however, conglomerates and Wall Street behemoths have dominance over this larger-than-life industry. The problem arises when the cutthroat organization vie towards exploiting their userbase. The advent of the blockchain technology is cited to change the way businesses operate through its revolutionary technology. While the use cases of the technology are still being explored because of the newness of the blockchain, NXM has ventured into breaking the hegemony of corporates in the insurance industry. In this guide, we will study how NXM is striving to do that.
What is NXM?
NXM or Nexus Mutual is a blockchain that provides decentralized insurance products. The protocol is designed to modernize stakeholders’ incentives to asses risk while collectivizing financials. Nexus Mutual is registered as a non-profit in the United Kingdom while the organization is structured as a decentralized autonomous organization (DAO) based on Ethereum’s blockchain. The protocol initially launched only Smart contract Cover which were used to provide users and developers protection against bugs and hacks. However, many developments have taken ever since its initiation and the protocol has widened its scope significantly.
NXM’s DAO holds the funds of its members which are then used to pay out claims. The risk-sharing pool is used to determine the price of the NXM token. The token can only be purchased through the DAO and is not listed on exchanges. The comparison of the amount of capital in the fund with the amount the DAO needs to pay out existing claims determine the price of the token.
Price performance
NXM crypto has had a performance that put it under the radar of investors during the current year. During the beginning of 2021, the cryptocurrency was operating near $20; however, as bullish momentum overtook the crypto market NXM surged towards $159. The market corrections were not as brutal as expected and the cryptocurrency has recovered since. Currently, the token is, once again, under bullish momentum with the price at $153. A new all-time high may be expected to be established by the token.
According to the estimates of Wallet Investor, the cryptocurrency is expected to stand at a price level of $256 in a year’s time while the five-year projection places NXM token at $652. Digital Coin Price projects the price to cross $400 by 2025. The protocol has a disruptive proposition and favorable market conditions can lead it towards new heights of success.
