Pundi X was a very cheap digital asset trading at around 0.1 won at the beginning of 2021. However, within just a few months, it surpassed 3 won, achieving an increase of nearly 30 times, providing significant profits to some investors. For example, if one invested 1 million won initially, calculations show that it would have grown to over 30 million won, assuming no sales were made in between.
Pundi X is a project that aims to build cryptocurrency payment infrastructure. It has developed the XPOS system, which can be used like a card terminal in regular stores, supporting not only cryptocurrency payments such as BTC, ETH, BNB, and NPXS but also traditional payment methods like Visa, Mastercard, Apple Pay, and Alipay.
Additionally, XPOS users can receive NPXS tokens as rewards for payment processing, and this system includes an app market, advertising features, and card issuance capabilities. Stores can earn 1% of the transaction fee as profit, making it a beneficial model for actual store operations.
The NPXS token had an enormous issuance of over 258 billion tokens. As a result, the price per token remained extremely low, and investors likely felt minimal price appreciation.
Accordingly, Pundi X announced that it would execute a reverse split. The merger ratio is 1,000:1, so for example, someone holding 1,000 NPXS will receive one new token (PUNDIX) after the merger, and at the same time, the unit price will increase by 1,000 times.
This measure does not reflect any actual change in value, but is interpreted as an effort to reduce the number of tokens, compress supply, and raise the price unit to lower psychological barriers.
After the merger announcement, NPXS saw a price increase in a short period. This seems to reflect investors' psychological expectations and the supply reduction due to the decrease in circulation. Additionally, NPXS's main trading partner is Upbit's Korean won market, meaning that a significant portion of trading volume occurs domestically. This implies that there could be sharp price fluctuations depending on the buying pressure from specific exchanges.
Bitcoin fell to around $47,000 but quickly bounced back to near $54,000, indicating a recovery trend in the overall market. However, since the upward trend was too steep in a short period, it is currently judged to be a mix of profit-taking sales and short-term adjustments.
Therefore, altcoin investors, especially those interested in coins that have already risen significantly, should focus on dollar-cost averaging and risk diversification rather than the timing of short-term entries.
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