Review Stellar ($XLM) – An Open Network For Money

Even as bitcoin garnered headlines over the past five years, there were other cryptocurrencies and cryptocurrency platforms which racked up more impressive gains and traction among developers Stellar was one of them. In 2017, the value of Lumen, Stellar’s cryptocurrency, grew by 34,900%. In 2018, the value tumbled by 77%, but then the price was relatively stable throughout 2019 and 2020. Performance improved in 2021, with an increase of 226% from January through March. Its market cap as of Apr, 20 2022, is $5.028 billion. Stellar might offer an interesting opportunity for traders looking to diversify their holdings away from bitcoin. Here is a brief introduction to the coin and its business prospects. 

What is Stellar (XLM)?

Stellar is an open-source network for currencies and payments. Stellar makes it possible to create, send and trade digital representations of all forms of money—dollars, pesos, bitcoin, pretty much anything. It’s designed so all the world’s financial systems can work together on a single network.

Stellar has no owner, if anything it’s owned by the public. The software runs across a decentralized, open network and handles millions of transactions each day. Like Bitcoin and Ethereum, Stellar relies on blockchain to keep the network in sync, but the end-user experience is more like cash—Stellar is much faster, cheaper, and more energy-efficient than typical blockchain-based systems.

Outstanding Features

What is the project trying to achieve?

Stellar is an open, interoperable payment and currency system. Below few of Stellar’s powerful features—asset issuance, the network’s distributed order books, and the path-payments system—that will enhance and simplify any fintech product.

On Stellar, you can issue your own assets

Stellar allows a user to create a redeemable, tradable representation of any asset. Such representations are called tokens. Tokens are most useful when tied to currencies (representing dollars or yuan or euros digitally makes payments borderless and instant) but in theory, on Stellar, you could issue a token for corn bushels or gold as a consultant. In a sense, Stellar offers a generalized toolkit for anyone to do what Tether did for the Dollar with their USDT, or what Coinbase is doing with their USDC. Stellar lets you digitize value and then issue and redeem claims on it; the platform was designed for stablecoins before stablecoin was even a word. 

On Stellar, you can trade tokens peer-to-peer

Every token on Stellar is exchangeable with any other token on the network, and the Stellar protocol itself connects buyers and sellers. Users can submit their bids or asks to the public network via a single, simple operation, and every few seconds compatible trades will automatically resolve. Among the top blockchains, Stellar is unique in this regard. The base Stellar protocol not only tracks balances (as Bitcoin or Ethereum do) but also tracks and settles trades between balances in a decentralized, ownerless way.

On Stellar, you can transform currency as you send it

Like any payments system, Stellar allows one user to send currency to another. User A can send User B dollar tokens or XLM or whatever. But Stellar also allows a user to send one currency and have the recipient receive another. Essentially, you can send and exchange money in a single atomic transaction. 

This is called a path payment. It’s a powerful innovation for international payments; for example, an American company can pay an invoice in Mexico by spending dollar tokens, while the vendor receives peso tokens. Neither side incurs exchange risk or delays. Both sides get only the currency they want

What is the unique selling point?

Borderless-Limitless-Powerful: Stellar makes it possible to create, send, and trade digital representations of all forms of money: dollars, pesos, bitcoin, pretty much anything. It’s designed so all the world’s financial systems can work together on a single network.

Stellar makes money better: Stellar’s API and SDKs are ready to help you transform the world of finance, and the network’s currency connections could give even a small company the power and reach of an international bank.

Global Payment Apps: Leverage the many currency-backed tokens already on the Stellar network.

Asset exchanges: Use Stellar’s built-in decentralized exchange for crypto, forex, or securities. Users can swap between tokens using simple functions built into the protocol.

Micropayment services: Power payments of any size with Stellar’s low, flat fees and fast transactions.

Roadmap

Their vision for 2022 builds directly on what we learned in 2021, their 2022 roadmap is structured around three strategic building blocks:

• Increasing network scalability and network innovation, by increasing network capacity by an order of magnitude and through enabling trust-minimized innovation;
• Activating more network participation, through ecosystem input and engagement that informs a long-term Stellar roadmap, driving greater commitment and ownership within the ecosystem, and bringing in new participants through partnerships, technology innovation, marketing, investments, and community activities;
• Demanding and promoting diversity and inclusion, by doing the necessary research to know where we stand on the path to our mission, to understand the impact our ecosystem is making, and where we need to focus next to create a more equitable financial system and the network effects that we believe go hand-in-hand.

Technical Data

Token Metrics

• Token Name: Stellar.
• Ticker: XLM
• Blockchain:  Stellar blockchain.
• Token Type: Utility
• Total Supply: 50,001,787,897 XLM.
• Circulating Supply: 24.78B XLM.

You can update the price of XLM Token on Coincu.com right at: CLICK HERE

Token Allocation

Stellar’s supply distribution is managed by the Stellar Development Foundation (SDF) and not subject to a vesting or specific distribution schedule. Stellar initially stated that the 100 billion XLM issued at the launch of the network in 2015 would be distributed as follows:

• 50% would be reserved for the Direct Sign-up Program. The goal of the Direct Sign-up Program was “to make lumens easily accessible to millions of individuals and communities across the globe” through airdrops.
• 20% would be allocated to the Bitcoin Program. The goal of the Bitcoin Program was “to encourage bitcoin holders to explore and use Stellar” by airdropping tokens to Bitcoin addresses.
• 25% would be distributed as part of the Partnership Program. The goal of the Partnership Program was “to encourage adoption and growth of Stellar through the institutional distribution of lumens” by distributing grants to businesses, governments, institutions, or nonprofit organizations.
• 2% would be allocated to Stripe for its seed investment and locked until June 2019.
• 3% would be retained by the Stellar Development Foundation for its operational budget

Token Release Schedule

As detailed in the launch section, the Stellar Development Foundation initially designed a distribution schedule that would help grow the number of XLM holders by airdropping the supply initially issued (50 billion XLM) to specific groups.

Token Sale

You can trade XLM on CEX or DEX: Binance, coinbase

Price today: $0.2029

ATH: $0.9381

More information at: CLICK HERE

Token Use Case

XLM is used as a medium of exchange within the Stellar network. XLM is also used to pay transaction fees in order to stop spammers from clogging on the ledger. Every account in the Stellar network most hold a minimum of 1 XLM to ensure authenticity. XLM also acts as a bridge currency within the Stellar Distributed Exchange, leveraging its nature as the only asset in the Stellar network that does not require an anchor, allowing it to pair with any other asset to provide liquidity.

Market and Community

Market

To put it very simply, Stellar enables a future where everyday people can send money anywhere affordably and quickly. They at the Stellar Development Foundation believe they can only unlock the true power of the modern digital economy when value can flow unencumbered around the globe. That’s what Stellar is for, and that’s what Stellar is going to do. 

Community

Stellar has 748.2K Followers on Twitter

Backers

Team

The development team is experienced in the field of technology, blockchain.

Partners & Investors

Verdict

Stellar is an open, interoperable payment and currency system. Above, we explain a few of Stellar’s powerful features—asset issuance, the network’s distributed order books, and the path-payments system—that will enhance and simplify any fintech product. Hope this information can help you understand more about Stellar.

Find more information about Stellar:

Website: https://www.stellar.org/

Twitter: https://twitter.com/StellarOrg

Reddit: https://www.reddit.com/r/Stellar/

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Alan

Coincu Ventures