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Stellar (XLM) outplays Ripple in the fight for the global adoption

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Stellar’s week has been spectacular. The Tempo partnership announcement prompted a rise in its price of thirty percent at a time in which the general market is still going down (even if Bitcoin has had a good couple of days).

Stellar is making all the right moves to place XLM in a privileged position within the cryptocurrency world.

The Tempo partnership

Stellar’s XLM and Ripple’s XRP are two coins (and organizations) competing to conquer the same market (the international transfer market, which is worth trillions each year and keeps growing). To a lesser extent (at least for now) Litecoin is also entering the global banking industry.

The only way in which either organization and crypto-coin can make some headway into the global financial services industry is by securing strategic partnerships with some key players at the start and, ideally, with everybody in the long-term. 

Ripple had the advantage over Stellar with partners as Banco Santander, SBI Holdings or BBVA. But it seems that Stellar did them one better by partnering up with the French remittance service Tempo, which is huge in Europe and Latin America (not very well known in the USA, but still very relevant)

Tempo will use XLM as an intermediary currency to do international transference quickly and cheaply, and they expect this will revolutionize the industry at the global level. Tempo has chosen to use Stellar’s network and currency to achieve this. The news has already boosted XLM’s price, and the chances are that it will surge soon as use within Tempo’s environment increases the coin’s demand and usefulness.

While Ripple’s technology is superior to Stellar’s there’s one feature in this new partnership that can make all the difference: Ripple’s partners use the Ripplenet ledger to settle payments, but they don’t need (and for the most part it seems they don’t choose either) to use XRP as a mediating currency to settle payments, only for  transfer fees, which are ridiculously low anyway. 

Tempo, on the contrary, will be using Stellar’s XLM as a bridge between the origin and the target fiat currency. That will translate into increased transaction volume and demand driven by a single partner, a feat that still escapes Ripple.

Stellar is declared Muslim-friendly

In the Muslim world banks and finances work differently because the Prophet had a few things to say about money, lending, and related issues. 

So financial products and technology that seem commonplace or inoffensive in the West are not always so readily accepted in Islamic countries. Well, that won’t be a problem for Stellar nor XLM. Islamic scholars have certified this cryptocurrency to be compliant with Sharia law and have granted a certification.

This will grant Stellar access to about one-third of the world.

Prospective listing at Coinbase

Another piece of big news for Stellar was Coinbase’s announcement that it is considering to include it in its platform. The US-based exchange is every cryptocurrency wet dream, and it seems it could come true for XLM. Mind you, Coinbase’s announcement was exceedingly ambiguous, but at least it signals at a possibility, and the market has reacted enthusiastically.

IBM launches Stronghold USD on the Stellar network

IBM is backing Stellar and a new project called Stronghold USD which aims to produce a dollar-backed cryptocurrency. IBM chose to test the launch of a token of its own using the Stellar network and technology, and Stronghold USD will also use XLM to transact.

It’s anybody’s guess how this project will fare. But even if it doesn’t work, it shows the faith and commitment IBM has on Stellar as a blockchain, as an organization, and as a currency and that will inspire confidence to other big players and potential partners and investors.

Jesse Lund, IBM’s vice president of the global blockchain, had this to say about the new project,

“IBM will explore use cases with business networks that we have developed, as a user of the token. We see this as a way of bringing financial settlement into the transactional business network that we have been building.”

These are all meaningful milestones for the Stellar blockchain. Some of them are things that Ripple would like to do but hasn’t. So yes, Ripple’s tech is superior as is its expertise, and experience dealing with financial institutions. And yet, Stellar Lumens seems to be getting ahead.

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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 and read our full disclaimer.

Image courtesy of Maxpixel.net

Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

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The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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