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Why Investors Shouldn’t Be Concerned Over Stellar Lumens (XLM) Liquidity

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Stellar Lumens (XLM), which ranks eighth with a market capitalization of $3,947,869,328 (as of April 9, 2018), is listed in only a few exchanges. Unlike the big currencies like Bitcoin and Ethereum, which have listed on more than 400 exchanges, Stellar is listed in only 79 exchanges. As evident from the market response of the lesser-known altcoins, Stellar, like any other altcoin, struggles with its liquidity. For many traders, the dearth of buyers/sellers of a currency is a major put-off as such currencies are difficult to trade on exchanges.

A Review of Stellar’s Liquidity

As per the definition, liquidity suggests the extent to which an asset can be rapidly bought/sold by investors without affecting the price of that asset. Consequently, the term “market liquidity” signifies the degree to which a market enables assets to be traded at a stable rate. An asset, which has little or no liquidity, is critical to trade on exchanges. This can be explained with an example: an illiquid asset like an antique artwork can be extravagant and costly, but in the absence of a steady market for such art, the owner will have to sell it at a discount if he/she wants to sell it quickly.

When compared to the major currencies in the market, such as BTC, ETH, and LTC, which are listed in more than 400 exchanges, Stellar (XLM) is listed in only 19% of the total exchanges. Quite naturally, such low liquidity is a huge concern for traders. This altcoin, which comes with several promising features, should improve its liquidity to be traded more frequently in the market. As for XLM traders, such low liquidity can be alarming. However, going by some of its features on offer, it is unjust to assess its profitability on the basis of its availability to the traders.

Why Stellar’s Low Liquidity is Not a Concern for Investors?

From its very inception, Stellar has established itself as a highly rewarding altcoin. However, a quick market analysis will reveal that it is not entirely free of limitations. For instance, a lack of alternative anchors can be regarded as a big turn-off, apart from the fact that a Stellar account can only be topped up in lumens. Besides these limitations, one of the major drawbacks of Stellar is its low liquidity. As evident from the market analysis, Stellar (XML) is listed in less than a hundred exchanges, while other contenders like Bitcoin Cash and EOS, with visibility in 262 and 116 exchanges respectively, have much greater availability.

While it’s quite natural to be alarmed as investors, the low liquidity is not a big concern for the traders, report the analysts. As a worthy competitor in the crypto-market, it boasts a number of worthwhile features, from lightning fast transactions, low transaction fees to outstanding popularity. At any rate, this promising altcoin, which is traded at $0.196834 at the time of writing, can surprise its investors in many ways.

Ways Stellar Can Enhance Its Liquidity

As discussed at length in the earlier segments, Stellar’s (XML) liquidity is a major concern at the moment. With Stellar introducing a range of exciting updates, Stellar can emerge as a formidable contender to the major currencies, provided it improves its availability to its users. Although Stellar is not listed in a large number of platforms, it is available in many prominent exchanges such as Binance, Bittrex, Upbit, and Kraken. As per the trade volumes, these are the largest exchanges in the market. So, spreading the awareness can go a long way in attracting buyers/sellers to this profitable asset. Also, the regulatory body of Stellar can deploy the currency in real life transactions. Given the fact that it is recognized for its low-cost financial services, Stellar can embrace the ripe market in the developing countries to enhance its user-engagement.

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 Taco Witte via Flickr

Blogs

3 Things to Avoid if You Want Your ICO to Succeed

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Initial Coin Offerings, or ICO, have become quite popular in 2017, which is something that also continued throughout 2018. In fact, there were hundreds, if not thousands of them so far. However, no matter how many of them were organized, most never managed to make it into the market and achieve their goals.

Analysts claim that there are a lot more failed ICOs than there are successful ones, which has caused a lot of people to simply give up on the idea. However, many are still curious to know what went wrong, and while failed ICOs can be studied for years without discovering absolutely every flaw, some of the bigger ones can be spotted right away.

This is why we will now list top three reasons why so many ICOs failed, and everyone who is thinking about launching one should pay close attention.

1. The lack of demand for the product

According to estimates, around 60% of ICOs often fail at the first stage simply for the lack of interest in what they offer. When someone comes up with an idea and launches an ICO in order to raise money, they are presuming that people will be interested in investing in this idea. In addition, prior to making an announcement that an ICO is coming, it is wise to ensure that the announcement will be heard in the first place.

Additionally, ICOs need to be approved by appropriate…

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Bitcoin

Reasons Behind The New Bitcoin Crash

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Cryptocurrency investors and supporters experienced quite a shock last week with the latest Bitcoin crash. Almost every single one of top 100 cryptocurrencies trading in the red. Not only that, but most of them experienced massive losses, often larger than 12%, or even 15%.

The event was unexpected and all cryptos, with the exception of a handful of stablecoins, lost a large part of their value. However, as always, Bitcoin is the one receiving the most attention, especially since this is the first time that BTC has dropped below $6,000 in a long while. Right now, Bitcoin is still losing value, with its current price being at $5,503.11 per coin, and a drop of 12.76% in the last 24 hours.

After the initial shock, a lot of investors started wondering and researching the new crash. The main question still remains: Why did this happen?

While this is more than understandable, especially considering how much money, time, and patience people have invested in crypto, the reasons behind the new crash remain obscure to many. Because of that, we are now going to explain two events that are most likely to be causing this situation.

1. The selloff

This is believed to be the main reason for the new crash of Bitcoin. The selloff came as a consequence of the last year’s bull run, which has launched BTC and other coins to entirely new heights. Because of that, numerous…

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Altcoins

Here’s Why This Coin Still Has Wings (WINGS)

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WINGS, a decentralized crowdfunding platform based on the Ethereum blockchain, has had a great run over the past two months. Culminating in a peak of US $.23 just a few days ago, the currency behind the product has more than doubled since it’s lows of early September.

Despite the slight downturn WINGS is currently experiencing, this crypto-favorite may not be done running up the green candles on your favorite exchange just yet. A small drop like we had today was actually expected and could be considered healthy by long-term investors. These dips are also appreciated by those of us waiting to get in on a project we feel has real potential. WINGS has shown us that potential and is now presenting a great buying opportunity for speculators and traders looking for the next wave of support to lift this coin into the stratosphere.

What is WINGS?
WINGS was created to nurture project proposals via the Decentralized Autonomous Organization (DAO) model. Using blockchain networks and smart contracts, the platform allows the WINGS community to promote proposals with the greatest chance of positive returns. WINGS, in essence, is a decentralized forecasting ecosystem, where token holders are given an incentive to make choices concerning projects on the platform.

The DAO is a popular concept for crypto-projects that want to remain entirely on the web. Using the peer-to-peer technology of blockchain and smart contracts to enforce the rules of participation is…

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