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Here’s Why Stellar (XLM) Could Soon Catch Up To Ripple (XRP)

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Stellar (XLM) is up close to 40% over the last twenty-four hours against its USD counterpart and is up close to 900% since the start of December. This is a coin that is picking up a huge amount of speculative attention right now, even against a backdrop of weakness in some of the more established cryptocurrency markets, and the extra attention is translating to some pretty substantial volume spikes. In the last twenty-four hours alone, more than $670 million dollars’ worth of XLM changed hands.

What’s driving this action and where do things go next?

Before answering, it’s worth delving into the history of this one a little bit.

Most reading will likely be familiar with Ripple (XRP). For those that aren’t (and for those that are, but aren’t familiar with its history), it was initially conceived by a guy called Ryan Fugger who, after a couple of years of working on the project, handed it over to Chris Larsen and Jed McCaleb.

XLM Daily Chart

XLM Daily Chart

In 2014, McCaleb left Ripple to form Stellar. It was initially set up based on the Ripple protocol but subsequent to a fork in the Stellar network, has since been based on what’s now called the Stellar Consensus Protocol (SCP).

So what’s the difference between Ripple and Stellar?

Well, both are designed as systems through which two or more parties can conduct cross-border payments, quickly and cheaply. Both employ a native cryptocurrency (for Ripple, it’s XRP and for Stellar, it’s XLM) and these coins are used for a variety of things – transaction fees, DDOS protection, etc.

Where they differ, however, is in their respective intended use cases.

Ripple is going after the big banks. The company wants its platform to form the base of cross-border exchange between one financial institution and another, replacing the current systems (primarily SWIFT) and, in doing so, removing the inefficiencies associated with these existing processes. And as major news outlets are reporting in the press subsequent to XRP’s huge run over the last few week, Ripple is being somewhat successful in its efforts.

While Ripple is going after financial institutions, however, Stellar is going after a much more individual use case. It’s still based on a cross-border exchange type platform and it’s still designed to facilitate quick and easy exchange and transfer but, in Stellar’s case, the parties on either side of the transaction aren’t global financial institutions.

Instead, they are individuals from developing countries that want to send money back to their families. They are small businesses in struggling economies that want to transact on a global scale but that can’t gain access to bank accounts of traditional exchange mechanisms. In line with this vision, Stellar is also set up as a non-profit entity.

Is the non-profit element a red flag?

No. If you were asked to buy shares in a non-profit company, you’d turn that down (if you are looking to make a return, that is). When you buy XLP, however, you’re banking on the success of the platform in terms of adoption, not how much money the company behind it makes.

So what’s driving the action now?

Well, people are looking at what Ripple has achieved and are assuming that Stellar can do the same. The technology is, after all, similar, and Ripple is proving that it can work on a global scale. If Stellar can follow in Ripple’s footsteps and start to prove the market for this sort of platform in an alternative use case, there’s no reason XLM can’t catch up to XRP during 2018.

Of course, XRP has some hurdles to clear before it does this but, given what both companies have achieved to date, it’s far from an unreasonable suggestion.

We will be updating our subscribers as soon as we know more. For the latest on XLM, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Stellar.

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Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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