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Several factors determine the value and worth of any cryptocurrency, whether they are a viable investment opportunity or worth disposing of. Specific criteria need to be examined to determine the present strength and future potential of virtual currencies, which includes speed, transaction tariffs, scalability, value, technology, and development and leadership team.

This article will try to look at the Stellar Lumen’s (XLM) characteristics and whether it is a good digital currency worth holding or selling.

The 101: What is Stellar (XLM)?

XLM is a decentralized platform that was founded by Ripple co-founder, Jeb McCaleb, that facilitates the exchange of assets efficiently and easily. The platform is a blockchain based technology that allows it to support settlements in a secure yet decentralized way. It is an open-source payment platform that shares numerous comparations with Ripple.

How Does it Work?

Just like many decentralized payment technologies, Stellar runs a network of decentralized servers with the presence of a distributed ledger that is updated after every 5 seconds or so among all nodes.

One of the most prominent factors that distinguish bitcoin and Stellar is its consensus protocol. The Stellar protocol does not depend on the complete miner’s network to approve payments. Rather, it uses the FBA or Federated Byzantine Agreement algorithm, which facilitates faster processing of payments. In other words, what Stellar does is use a portion of their platform to approve and authenticate a payment.

Stellar’s Development Team and Leadership

Stellar Lumen is fortunate enough to have a respectable icon in the cryptocurrency ecosystem as its founder and leader, Jeb McCaleb and a great team working behind the vision and mission laid out by the top management.

In the world of internet technology, Jeb is a highly respected and experienced icon who has initiated many other projects other than Stellar. He first started with peer-to-peer music sharing systems called eDonkey. After this, Jeb developed MT. Gox, one of the very first Bitcoin exchanges, which hosted more than 60% of all Bitcoin transactions at one point. He later went ahead to sell MT.Gox then co-founded Ripple. This is to show you that the person leasing Stellar is a true master of his craft.


Transaction Costs

Thanks to Stellar’s elaborate and efficient consensus protocol, up to one thousand transactions can be safely processed per second at a fixed rate of 0.00001 XLM per settlement.

Stellar’s (XLM) Market Performance

The 7th ranked digital coin in the crypto market on the first impression doesn’t look like it has much to offer. For some time now, XLM has been exchanging under its record price. However, there is more to it than what meets the eyes.

XLM happens to be one of the top 15 best improved digital coins of the year, gaining its value by about 2600%. And of course, its partnerships with top firms like IBM and ICICI (India’s biggest bank) are a proof that XLM is bound to grow.

At the time of writing, XLM is exchanging at the value of $0.23 per coin with a market capitalization of more than 4.4 billion dollars. The currency follows the current bearish trend of the market too, but that does not mean it’s not worth HODLing.

The team and leadership, low transaction costs, the value it provides to the real world, and top-notch partnerships the currency has managed to get in its pocket, make it a good coin to HODL. Stellar (XLM) easily takes the title of the best-improved coin with 2600% of gains that was realized over a period adding its approval rating as a good candidate for HODL.

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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 Pxhere.com

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1 Comment

  • wmcraig
    Posted June 15, 2018 6:46 pm 0Likes

    Really nothing was said to give one any confidence in Stellar XLM price improvements. If anything the general industry news seems to indicate that most of the 2017 gold rush to crypto was manufactured via manipulation using Tether. This would mean all the excitment about tokens was nothing but an illusion.

    It appears the fact of real market forces will have to take the drivers seat if there is to be any price improvement. Investors are starting to realize Crypto tokens are not like stocks, bonds or even commodities. Most Tokens have no value absent their funding of the initial startup and initializing of the ecosystems behind each one. Other than flooding the founders team with new found wealth tokens have no relationship to the real value of the company s blockchain. One doesn’t buy a piece of the company as one would with a stock.

    So what is the real value? There is none for most companies. Companies like Stellar don’t even consider their token an investment. Obviously they wouldn’t tell you that when they need your money to launch and start developing their business around their blockchain. There it is again. Blockchain is the key not the token, unless it;s like Bitcoin with an extremely limited number of tokens. If you have invested in a token with a 100 billion token pool you have probably thrown your money away.

    Even companies like Stellar who are gaining large institutional use and acceptance are finding their business partners want to use their own token on the blockchain. The only way Stellar will gain value is in the exchanges where people will buy sell and accumulate, with accumulate being the primary necessity if prices are to climb.

    It appears the realities of the true value of tokens must be determined by close evaluation of a companies objectives to (USE THEIR TOKEN) within their ecosystem. Again, using Stellar as an example, to transact on the Stellar blockchain One token will pay for 100,000 transactions. Stellar has a goal of releasing 100,billion tokens over the next 10 years. For this to make any significant difference in price Stellar will have to become the worlds dominant Token. Is that possible? Sure. Is it likely? No.

    Invest wisely. I’m in so deep with Lumens that I find myself facing severe disappointment. We can only hope it actually catches on in the exchanges and the price climbs to a few bucks. Hopeful and doubtful at the same moment.

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