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Is Stellar (XLM) A Perfect Match For ICOs?

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ICOs
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Since the beginning of the year 2017, ICOs have been rampant on all crypto platforms and have amassed quite a fortune. There’s no denying the fact that almost half of the ICOs launched back in the previous year have crashed and thrown out of the market, but there are also examples set by tech start-ups which have raised almost $1.3 billion through their initial coin offerings. Due to this ICOs have been a frequent victim of several regulatory, financial and technical issues but nonetheless, there has been no stopping of ICOs.

  • Background of Stellar

Stellar works on consensus protocol and promotes the organic growth of the network through the unanimous accepted list of nodes. Birth of Stellar can be dated back to 2014 and since then its goal has been to act as a medium for organizations by which they can extend financial opportunities to communities. It has been a fast-growing organization which has now reached the market capital of $10.1 Billion and its circulating supply is 18.5 Million XLM tokens as of writing this article. One of the company’s founders Jed McCaleb is a well-known cryptocurrency genius who has been built two full-fledged cryptocurrency companies. He was the core person who successfully sealed the deal with ‘Stripe’ that resulted in the formation of his second brainchild after ripple.

  • Role of ICOs in Cryptocurrency Market

Through initial coin offerings, we have observed the gradual growth of different decentralized networks adopting blockchain technology. ICOs are more than just fundraising schemes. It allows network participation and global financial inclusion. Organizations have raised almost $1.8 billion through ICOs since last January.

  • Advantages of ICOs
  1. Initial coin offerings deliver a better approach to open source project development.
  2. ICOs deliver smart network efforts while keeping the costs of fundraising at the minimum.
  3. Once the coin is launched and acquired by users, its demand increases exponentially, which adds to the coin’s value.
  4. Token holders who acquire tokens during pre-sale often get additional tokens as rewards for their investments as a bonus.
  5. By purchasing tokens via its ICO buyers can ensure to obtain a share of profit from the project.
  • Ethereum – The Tradition ICO Platform

In the past, ICO funded projects have always been issued on Ethereum network using the ERC-20 standard. But for the past few years, the Ethereum blockchain has been subjected to transactional backlogs and security breach. This situation has called for an immediate step to break out from the norms and accept a better choice for ICO platform which is ‘stellar’.

  • Reasons for Using Stellar as An ICO Platform

The first ICO that took place on stellar blockchain is Mobius Network, which has raised around $39 Million during the first two hours of its ICO making it one of the largest ICO to be held on Stellar.

Below are some highlights of using stellar as an ideal platform for ICOs.

  1. Built-in decentralized Exchange:

Stellar was formed in order to support efficient trading. Tokens which are created on the stellar platform can be sold immediately on stellar’s decentralized exchange by employing stellar’s native offer mechanism. It reduces the need of relying on any third-party exchanges.

  1. Enhanced Security

The simplicity behind transaction model of stellar compensates for Ethereum’s lack of security concerns. The fact that it doesn’t require turing-complete smart contracts but employs atomic multi-operation transactions that can be audited quickly serves as a shield from security breaches and program vulnerabilities. There are many other additional securities such as node validation of their transaction by organizations.

  1. Creation of Custom ICO

Stellar provides customized ICO creation for those who understand the uniqueness of initial coin offerings by features such as base abstractions that include accounts, offers, payments, and transactions. With the help of these base abstractions, people can structure a unique built-in ICO features with ease. In addition to this, the stellar platform is also suitable for organizations having KYC requirements.

  1. Cheaper and Faster

The major reason behind finding an Ethereum replacement for ICO platforms is because of the increasing costs of computations, transactions, and valuations. With the rise in the value of ether, working on the Ethereum blockchain is getting more expensive. But this isn’t the case with stellar since it does not require ‘GAS’ for the execution of programs and the transaction fee is around .00001 XLM which is negligible. The average transaction time on the stellar platform is approximately 5 seconds making it much faster than Ethereum where it is 3.5 minutes.

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. 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 and read our full disclaimer.

Image courtesy of Niklas Morberg via Flickr

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

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

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

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SonicX
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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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