In the previous post, we saw a brief introduction to Xec. Although it was technically a good coin, comments and my close friends asked why it did not take off on a larger scale. That is indeed a good question. I also wondered why this coin did not take off on a larger scale. I will share what I understood based on my knowledge.
1. Supply and demand issue
The market always operates based on supply and demand. The total supply of XEC is 21 trillion. Of this, 19.9 trillion is already in circulation. This has not created scarcity. Therefore, it has become impossible for demand to increase and prices to rise.
2. The term "Clone" & competition
XEC has been referred to as a clone of Bitcoin in many places. It was created from a split with Bitcoin Cash (BCH), initially operating under the interim name Bitcoin Cash ABC (BCHA), and was officially rebranded as eCash on July 1, 2021. Its use was considered similar. Later, XEC was unable to compete with coins like Bitcoin Cash (BCH) and Nano. Its uniqueness did not stand out.
3. Lack of attention from large investors
Institutional investors (VCs, whales) have not been very involved with XEC. At the same time, Meme coins (like Dogecoin and Shiba Inu) received huge hype from people like Elon Musk and massive investments along with it. XEC has not received such significant hype. This too has curtailed XEC's growth.
4. Lack of community support
In the crypto world, community and news are everything. Coins like Shiba Inu and Dogecoin have grown solely through community hype. However, XEC does not have significant community support even in places like Binance Square.
New alpha coins like BOB, Conan, and Hawk, which have not yet entered the market, also have significant hype. XEC lacks such an organic community push.
5. Lack of technological advancements & marketing
Although XEC has advanced features like Avalanche consensus and sub-chains, it has not been able to explain properly to the market or showcase them. The technology exists, but due to the lack of marketing, branding, and real-world adoption, growth has been stagnant.
6. Impact of the Russia–Ukraine war
The Russia–Ukraine war that started in February 2022 affected the entire crypto market. During that time, many major coins fell:
• Bitcoin (BTC) – 7–8% decrease
• Ethereum (ETH) – 10–12% decrease
• Cardano (ADA) – 10–17% decrease
• Binance Coin (BNB) – 12–13% decrease
• Solana (SOL), Avalanche (AVAX) – approximately 10% decrease
• Dogecoin (DOGE), Shiba Inu (SHIB) – approximately 10% decrease
• XRP, Polkadot (DOT), Polygon (MATIC) – 9–12% decline
Due to this macro-level shock, coins like XEC have not gained the right momentum. However, this is only a short-term sentiment impact; in the long term, supply-demand and community factors are the key.
To sum all of this up in one line,
• High supply (lack of scarcity)
• Clone image & competition (coins like BCH)
• Lack of attention from large investors
• Lack of community support
• Lack of marketing & real-world adoption
Nevertheless, the only major strength for XEC is its robust technological foundation. For it to succeed in the future, it needs to strengthen community growth, partnerships, marketing, and real-world use cases. It must attract large investors. Otherwise, it will remain a stable but slow growth coin.
Please let me know if my opinion is wrong, and I will correct it.
