High Levels of Volatility

Crypto markets continue to face phases of adverse volatility. Uncertainty remains substantial for the time being and we anticipate high volatility periods in the future, as well.

There are a number of factors behind the wild price movements:

  • The crypto economy is still an emerging market. Rapid market development often correlates with high volatility.

  • Media attention often amplifies otherwise valid price movements.

  • Low market liquidity at times tends to cause larger-than-average price movements.

  • Changes in regulation tend to have strong effects on the market.

  • As perception of the space shifts, new participants keep entering the market.

  • Historical data shows that volatility tends to be high right after launch for most new coins. Initial levels often exceed 300% - 400%.

A key strategic goal for the NextEarth platform is to provide stability with increasing value so that the token price is not extremely volatile. Mathematical modeling helps risk mitigation. It is important to note, however, that no amount of modeling can eliminate uncertainty completely.

Last updated