Tag : Stellar

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Stellar Becomes 6th Largest Cryptocurrency by Market Cap

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We are seeing a resurgence of the world’s largest cryptocurrency, Bitcoin with a sense of vigor we saw back in its hay day. With the price at the time of writing at almost $7800 per Bitcoin unit, it seems well poised to break the $8000 mark soon. It is not good news for just Bitcoin however with Stellar performing well to see a surge of almost 30 percent in its value over the past seven days.
This move by Stellar, reputedly the younger brother of Ripple, see itself move past Litecoin as the 6th largest cryptocurrency in the world based on the market cap. Stellar now enjoys a solid place on the sixth spot among the cryptocurrencies with a market capitalization worth $5.4 billion which is comparatively much larger than Litecoin’s $4.8 billion.
There are no bitter feelings on behalf of Litecoin for Stellar as the creator of Litecoin took to twitter to congratulate Stellar on surpassing Litecoin’s market capitalization. That being said, he did continue to say that it does not make sense trying to compare the market caps of Litecoin and Stellar because of the inflated market cap of Stellar.
He believes that the metrics to decide the ranks of different cryptocurrencies is not exactly accurate. It does not reflect on decentralization nor how the market capitalization came about. He feels that cryptocurrencies of the likes of Ripple and Stellar should not even be categorized in the same rankings as mineable and proof of work cryptocurrencies like Bitcoin and Litecoin.
In the alternative rankings that Lee posted for the mineable proof of work cryptocurrencies, Bitcoin retains a top position, Ethereum comes in second, Bitcoin Cash comes in at third and according to the figures that he posted, Litecoin comes in at the fourth position.
Of course, the market capitalization metrics have always been a fickle thing in the world of cryptocurrencies. The rankings by Coinmarketcap.com is based on the same market capitalization metrics and not on any other factor by default.
When you look at the history of cryptocurrencies, there was one that shot up really fast among the rankings only to crash and burn after it was revealed to be little more than a pyramid scheme. We’re talking about Bitconnect Coin.
That being said, Stellar cannot be considered the same as Bitconnect Coin as it has been making major moves in recent times. The likes of receiving certification for its platform and for the native cryptocurrency units Lumens (XLM) from the Shariyah Review Bureau are proving that Stellar is definitely something that’s here to stay.

Makena Kelly / The Verge

Sources: nonprofit financial platform Stellar in talks to buy Chain, a startup building blockchain tech for the finance industry, for $500M in Stellar’s Lumens

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Stellar In Talks to Acquire Blockchain Startup Chain

The cryptocurrencies, Bitcoin, Litecoin, Ethereum, Dash, Ripple and Monero represented in Hong Kong.
The cryptocurrencies, Bitcoin, Litecoin, Ethereum, Dash, Ripple and Monero represented in Hong Kong.
S3studio—Getty Images

By POLINA MARINOVA

June 20, 2018

Stellar is in talks to acquire Chain, the San Francisco-based startup building blockchain technology for the financial industry, according to people familiar with the deal. Fortune understands the sale price to be $500 million in Stellar’s digital currency Lumens.

Chain previously raised more than $43 million in venture funding from investors including Khosla Ventures, RRE Ventures, Blockchain Capital, Pantera Capital, Nasdaq, Visa, Citi Ventures, Thrive Capital, BoxGroup, and Haystack.

Chain’s backers will receive payment in the form of Lumens, which they should be able to hold or sell immediately after the transaction, Fortune understands.

Lumens were created by Stellar, a company founded in 2014 by Ripple co-founder Jed McCaleb. Stellar Lumens (XLM) is the seventh most valuable cryptocurrency with a market cap of more than $4.3 billion. This week, the cryptocurrency was approved by New York financial regulators to trade on the itBit exchange.

With funding from payments company Stripe, Stellar’s blockchain technology is now used by companies from messaging startup Kik to IBM, which use Lumens to send payments between countries in the South Pacific region.

The pairing makes sense — Stellar has the money, and Chain has the engineering talent. One source familiar with the deal said it is likely in response to the heated battle for top developers between crypto companies.

It’s still unclear how Stellar will incorporate Chain into its ecosystem, whether Chain will continue building its existing products, and whether Chain CEO Adam Ludwin will stick around. Fortune has reached out to both companies for comment.