May 12, 2020

Stellar’s potential is all about the fundamentals

Whatever happens in the crypto market in these coming weeks, our advice remains the same: hold on to your lumens. Stellar’s fundamentals are very strong, and with several new partnerships in the pipeline we expect a surge later this year.

If you have some lumens in your XLMwallet, you are probably wondering what to do with them right now. Should you wait for a price rally after the Bitcoin halving and then sell? Or HODL for some time longer? Or perhaps use lumens to pay for goods and services online, given that it’s so easy with the fast and user-friendly XLMwallet?

Our advice would be to hold on to your XLM. We’ve been following the Stellar Foundation, and some of the recent news are extremely optimistic. After all, the long-term price isn’t about speculation — it’s about adoption. And Stellar was created as a currency for payments, especially cross-border. So any new partnership or project aimed at using Stellar improves its price outlook.

Branching out into investments with Abra

The first project we should talk about is Abra — a company in which the Stellar Foundation has just invested $5 million. It’s the largest sum of money that Stellar ever gave to another startup.

Abra is a financial services & investment app founded in 2014. Among other things, it allows users to invest in ETFs, send remittances and even perform fiat-crypto transactions in some countries, like the Philippines. In total, it operates in 155 countries. Before the current round, Abra already raised $40m, so it’s a well-established company.

Under the terms of the partnership, Abra will soon transfer to the Stellar blockchain. For Stellar, this means a huge new user base and access to new markets, as well as great use cases. Just think about it: you’ll be able to send your lumens from the XLMwallet to Abra in an instant and buy a share in an ETF investment fund, for example. We are excited!

Launching security tokens with DSTOQ

About 3 months ago, SDF made another investment — this time in the security token platform DSTOQ. The startup received $700k from Stellar. DSTOQ is a trading platform targeting emerging markets.

The Liechtenstein-based DSTOQ already uses the Stellar blockchain to create tokenized securities. For example, it offers assets pegged to the stocks of major corporations, like Amazon and Google, These assets are available to traders from all over the world, including countries where they would have trouble buying the actual stocks.

By the way, Stellar’s investment department was created very recently, in September 2019. So far it hasn’t made many investments, but these two show that Stellar means business. This initiative will surely lead to increased adoption of Stellar, including in the real economy.

We are sure that these and other upcoming investment projects will be far more important for the price of lumens than the halving of Bitcoin. So, if you are ok with long-term investment, we recommend that you don’t sell your XLM just yet. In fact, it may be better to wait until 2021!

For now, your Stellar coins are 100% safe in the XLMwallet. And if you decide to send them to someone, you’ll appreciate how intuitive and fast our wallet is. You can even link someone’s Stellar address to their email and make one-click payments!

We’ll keep monitoring the market for you, bringing you all the news about using and investing in Stellar. Don’t forget to follow us on Twitter!

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