Festive spirit on Stellar (XLM) platform marked with airdrops

Keeping up with the festive spirit of the holiday season, XLM-based financial services platform Stronghold airdropped 100,000 SHX tokens to its users.

Stronghold is a financial services platform that enables payments, trading, and USD reserves using their products like Stronghold USD and their platform APIs. Stronghold USD is a one-to-one USD-backed stablecoin of the platform; in cooperation with the Stronghold API, the token allows users to create wallets, accept and make payments, and perform other transactions.

This little show of appreciation from Stronghold was made available only to fully KYC-registered users of the platform. Full airdrop details can be found here. Overall, the move is expected to bring increased adoption and liquidity to both the Stronghold and XLM ecosystems. Stronghold team suggested that similar announcements could be expected in the near future.

Stellar still in bitcoin shadow

Despite exponential growth of Stellar ecosystem, XLM tokens are still strongly correlated with BTC price moves and far from decoupling from the bellwether cryptoasset.

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It will take a long time to see decoupling of other coins from Bitcoin. To decouple from bitcoin, altcoin needs to have their own infrastructure and / or price stability that is derived from that robust infrastructure. XLM is especially strong in this aspect as they have built a whole ecosystem around the project – from decentralized exchange, Stellar-based stablecoins, to layer 2 scaling solutions akin to Lightning Network, increased liquidity and fiat exposure through presence on almost all major exchanges to business connections and partnerships with big companies.

But the biggest reason for the decoupling and “official independence” from bitcoin, is that it is a sign of investor recognition — recognition that a particular cryptocurrency has its own real-world value that is entirely unrelated to Bitcoin.

From a technical perspective, the Stellar technology is not dependent at all on the Bitcoin or its price. From this point of view, therefore, it makes no sense why the price of the Stellar token reacts at all to price changes of the bitcoin or other cryptocurrencies. The fact that the XLM token still reacts in reality is mainly due to the following two effects:

  • Relative cryptocurrency pair volume: The two currency pairs XLM/BTC and XLM/ETH together represent on average at least half of the total XLM trading volume. The direct currency pair to the USD often times is a minority of the total volume. This inevitably causes the price of the XLM token to fall with falling Bitcoin prices.
  • Distorted market perception and speculation: Most of the market sees all altcoins as an extension of the largest cryptocurrency. In addition, many speculators are not only invested in XLM, but also own tokens of other cryptocurrencies, which are often bought and sold at the same time.

Obviously, adding more fiat/XLM pairs would be the main driver of the decoupling and Coinbase listing would be the first major milestone reached in this sense.

XLM is additionally ever more present in the ICO landscape as the preferred platform for new token launches. This could indirectly influence the XLM availability overall as ICO tokens would automatically get listed on StellarX and by generating interest in themselves would also bring more eyeballs to the overall XLM ecosystem.

Stellar’s has a simple, easy-to-use built-in token issuance system that is permissionless and accessible to anyone. Second, Stellar offers built-in token capabilities that can support multi-signature authorizations, generate dividends, limit who can hold tokens, and more. And probably most importantly, Stellar features a decentralized exchange where any Stellar network token can be instantly traded without relying on a third party exchange to list the token. This means newly issued tokens can be traded on Day 1.

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Felix Küster
Felix Küster

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.

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