Perhaps one of the most exciting and innovative payment networks, Stellar was created by Jed McCaleb and Joyce Kim in 2014. Since that point, it has expanded massively and attracted a lot of attention along the way. Stellar is decentralized and utilizes Ripple protocol. Stellar made a few beneficial changes to the coding and created a fork from Ripple at this point.
In 2015, after a bit of a tumultuous initial start, Stellar created a standalone protocol with a brand-new algorithm. It was at this time that Stellar launched its very own non-profit organization known as the Stellar Development Foundation. The Foundation uses its now vast resources to fund new and diverse crypto projects that push boundaries and create real change both in the crypto and real world.
Along with the payment network and non-profit backbone came a new altcoin, Stellar Lumens. The token garnered relatively little attention initially, with many crypto investors preferring more mainstream crypto like Ripple, Bitcoin and Ethereum. But with the interest growing substantially from inception until now, Stellar might just be the next big investment among crypto enthusiasts.
This article will explore why.
What is Stellar Lumens?
Stellar Lumens is an altcoin that works on the Stellar Protocol and aims to eventually unite every currency worldwide through a single payment network. It is an extremely bold venture, seeing as no real-world platform has ever come close to this, but if Stellar pull it off, it could blow all other crypto out of the water and have the likes of Bitcoin and Ethereum fighting not to become obsolete.
Stellar Lumens exchange code is [XLM]. The current XLM to USD value (as of March 2018) is $0.23, making it an absolute bargain for investors looking to buy into a cryptocurrency without forking out thousands of dollars. Currently, the currency is still in its infancy having only around 20% of its total supply mined and in circulation. This gives the price a lot of room for real growth over the next few years.
Should I invest in Stellar Lumens?
The truth is, the altcoin is a by-product of a very clever and sophisticated protocol. As long as Stellar Lumens is tied to the fate of Stellar, it is likely to be a sound investment. Here are 3 reasons why Stellar is such an innovative payment platform.
- It is cheap. It operates with no restrictions, allowing users to transact across borders with only the tiniest fraction of cost. The cost is so low, in fact, that Stellar promotes it as almost completely free. How low? Well, it is the tiniest fraction of a penny. This not only has amazing crypto potential, but also a staggering real-world value, where financial transactions often cost money to process.
- It is fast. You are probably thinking all this low-cost budget transacting is going to take a long time, especially when considering the limitations of other blockchain technology. Well, the great news is Stellar is no Bitcoin. Transactions typically clear within 3 seconds, making it an expedient and real-world operational platform.
- It is ethical. At least that is what the board of directors would have you believe. They post transparent expenditures and operate as many other non-profit organisations do. The primary focus being a goal of wealth redistribution rather than wealth gathering.
Will Stellar Lumens become the first mainstream crypto?
This one is a bit more convoluted to answer. The answer in short is that it could potentially become mainstream and has a lot of support from mainstream financial solutions companies as well as tech companies. Only time will tell if it will be the first to reach the mainstream goal. We are sure, eventually a crypto will get there, it is just a matter of finding out which one does it.
So why is there so much Stellar hype?
We mentioned big companies buying into Stellar and supporting the technology. You don’t get much bigger in the tech world than IBM. IBM back the Stellar protocol and have put a lot of weight behind the platform’s significance and potential. When this occurred in 2017, the value of Stellar Lumens increased significantly.
There are also a lot of third world and developing countries that are integrating the technology within their own financial platforms. With it being a low-cost alternative to real world platforms, it makes absolute sense that cash-strapped countries would embrace Stellar.
This interest is something that is gradually growing over time, and as with a snowball rolling down the hill, Stellar is growing exponentially as more and more people use the platform. This, in turn, has a knock-on effect for the altcoin Stellar Lumens and creates a lot of investor interest.
What are the predictions for Stellar Lumens?
The altcoin finished 2017 on a strong note, invigorated by its IBM backing and with a refreshed company mission, it looks set to grow quite significantly in the next 12 months. Most commentators are hyping a growth level of around 275%, but that might be a little farfetched.
Providing that the trajectory remains the same as it was in 2017 (from $0.002 to $0.31), Stellar Lumens should be a great earner for the coming year. Investors are also empowering the crypto world as it continues to take big steps towards being fully real world functional.
Due to less widespread support from trading platforms, you can invest in Stellar Lumens through altcoin exchanges predominantly, where it is traded for Bitcoin or, in some cases, other major tokens. Though, the good news is that XLM has recently been listed by one of the major exchanges providing crypto/fiat trading, CEX.IO. There you can buy or sell Stellar Lumens for USD and EUR as well.