2018 is has been a very difficult time for nearly all crypto projects. Nu has not been able to escape the difficulties of the present environment. The blockchain sector is subject to tsunamis of liquidity, followed by extended droughts. It can be disorienting. All non-Bitcoin blockchains have gone from a combined market cap of around 550 billion in early 2018 to around 60 billion today. That is a terrible environment. Unfortunately, Nu had a problem marketing NuShares on exchanges earlier this year that made our difficulties worse.
Despite the difficulty of the current environment, I still really believe the design and fundamental architecture of Nu has something important to offer the stable crypto space. There are three basic approaches to stable crypto. One is far more economically efficient than the others, and Nu is the only blockchain to implement this most efficient model. Above all, Nu is designed to be rugged and resilient. With a modest amount of diligence, I believe it is possible to restore the USNBT peg. The team is certainly still working toward that end. How, you might ask?
Two basic strategies:
By marketing CNNBT, which we have kept the peg on. The very fact that we have kept the peg on this Nu stable currency shows the project is far from dead. It is still working.
By making money off automated trading operations. We are already doing this with USNBT, at small scale for testing. We plan to expand the volume of the operation, and are seriously looking into the viability of trading assets outside the scope of the Nu network. The plan is to make arbitrage profits while making USNBT more liquid. We use those profits to pay expenses, but also to purchase USNBT. It won’t require much in the way of trading profits to have a huge impact on the USNBT price. The entire market cap is just $500,000 USD, and with thin volume, a large price increase could be created with a modest purchase of USNBT costing just tens of thousand of US dollars.
While Nu is unlikely to unseat Tether as the dominant market player anytime soon, we do think it possible to restore the peg, show that the model works, and make incredible profits for NuShare and NuBit holders who buy at these levels. Looking at the NuShare chart, we can see the price nearly flat lined for an extended period in 2017, only to reach a new, all time high in early 2018. There is good reason to think something like that can happen again. A modest marketing success and a modest success in our arbitrage and liquidity trading is all that is needed. It is not guaranteed. There are considerable risks. However, the potential rewards for investors buying in at these very depressed levels is truly huge. People who want a high risk, very high reward potential should consider putting a small portion of their funds in Nu. Some investors have profits exceeding 10,000% from NSR for investing in 2017 and selling at the peak earlier this year. It can certainly happen again.