Here’s Why You’d Be Foolish To Ignore Stellar (XLM)

Stellar (XLM) is trading at less than $0.33 a piece. At the start of January, the same coin went for more than $0.85. That’s a collapse of 61% in around four weeks. This is far from XLM-specific, of course – the wider crypto markets have taken a similar (and, in many cases, a more pronounced) hit.

Of those coins that have corrected, however, a handful are set to take off once the market turns around.

And for us, Stellar’s Lumen is one of this bunch of winners.

When it comes to valuing a cryptocurrency, markets are pretty heavily divided. The aggregation sites normally list by market cap but we all know that this is pretty useless since all a coin has to do to increase its market cap is to increase supply. We’re not trading equities here, where a market will revalue to accommodate a fresh injection of shares, we’re talking crypto.

What we like to base our valuation on is a combination of three inputs.

The first, the team behind the coin. The second, the real world use cases of the coin and/or the technology with which it’s associated. The third, the community.

So, against these metrics, how does Lumen perform?

Well, we wouldn’t be discussing it here if it didn’t score highly on each point, but let’s get a little more specific.

First, the team.

The guy to focus on here is Jed McCaleb, who is listed as a ‘Stellar Developer’ on the company’s about section of its website. He’s much more than that, however. He founded the Stellar Development Foundation having left Ripple (XLM), which he also founded and (and this is something many people don’t know) he also founded Mt. Gox. Sure, Mt. Gox is now something of a black spot on crypto history, but at its peak, it was the number one entity in the space and McCaleb was no longer involved at the point when things started to go bad.

In other words, he’s been involved in two of the biggest projects in crypto before he created his third, Stellar.

The advisory board is just as strong. Patrick Collison CEO of Stripe; Matt Mullenweg, Founder of WordPress.com; Sam Altman, President of Y Combinator; and Naval Ravikant, Founder of AngelList all feature in advisory roles.

That’s the board, what about the real world use cases?

Well, this is where Stellar is leagues ahead of some of its peers. It’s essentially doing what bitcoin set out to do – bring a decentralized payment network into the mainstream that connects people to low-cost financial services. It’s crypto for the unbanked but also crypto for the banked that don’t want banks. An everyman’s crypto.

Finally, the community.

You’ve only got to take a look at the primary social channels to get a feel for the incredible community that’s behind this one. Close to 70,000 users follow the company’s SubReddit. The company has 200,000 followers on Twitter. And these guys and girls are very active in the community’s they represent.

To bring all this together, in XLM you’ve got a coin that fuels a technology that has the potential to finally bring to the table what bitcoin and others have tried (and so far failed) to, led by a team of industry leaders and incumbents, all of which is supported by hundreds of thousand strong community of enthusiasts – many of which hold XLM as representative of their support.

When this market turns, and it will, the coins that check each of these boxes are going to be not just the short-term winners but the long-term growth coins of the sector.

Don’t ignore XLM right now.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Stellar