Stellar Lumens is a payment network that enables financial institutions, companies and individuals to send each other funds in the form of the native XLM asset or in the form of IOUs, digital representations of any asset on the Stellar network.
It’s also a currency exchange network that lets you convert your virtual or fiat currency, and make money transfers to the four corners of the world.
Launched on July 31, 2014, the platform is co-founded by former lawyer Joyce Kim and Jeb McCaleb.
The latter is a pioneer of the Bitcoin ecosystem known for creating the Mt.Gox marketplace as well as co-founding Ripple.
Jeb McCaleb decided to create Stellar after disagreements with Chris Larsen, also co-founder of Ripple, over the direction the project was taking, stating in particular that it was unhealthy for a company to be at the head of such a payment system, and that a true peer-to-peer network should be set up that was not centralized, and not dependent on a handful of shareholders.
Stellar was created to set up a genuine, non-centralized peer-to-peer network, not dependent on a handful of shareholders.
Supported by the non-profit Stellar Development Foundation, Stellar is not only the name of the platform, but also of the project’s blockchain, which is made up of two large entities: one for facilitating transactions and the other for issuing credits.
Each action is facilitated by the presence of anchors, which are able to quickly perform the necessary currency conversions for each transaction.
First called Stellar, the crypto currency has been called Lumens since 2015 on the cryptocurrency market.
While, like Ripple, Stellar Lumens issues both IOUs (I Owe You), which are a kind of IOU, and a token of value (the Lumen, whose symbol is XLM), its offering is geared more towards individual users than institutions.
Stellar was originally created more for individuals than for institutions. Buy XLM tokens securely
Stellar (XLM) was founded in 2014 by Ripple co-founder Jed McCaleb and Joyce Kim, with the aim of facilitating fast, low-cost cross-border payments, while including unbanked populations in the global economy.
From the outset, Stellar has taken a unique approach, focusing on fast financial transactions and interoperability between traditional financial systems and digital assets.
The team behind Stellar, united under the Stellar Development Foundation (SDF), includes blockchain experts, developers, and finance professionals like Denelle Dixon, the foundation’s CEO, who has a strong background in strategic management and regulation.
The foundation is committed to developing and supporting a decentralized global payments network, aiming to make financial transactions accessible, secure and affordable for all.
Stellar (XLM) is a blockchain designed to facilitate fast, secure and low-cost cross-border payments.
Using the Stellar Consensus Protocol (SCP), a unique consensus protocol that requires no mining, Stellar enables transactions to be validated in seconds, with extremely low fees.
Its native token, the Lumen (XLM), is used to pay transaction fees and facilitate exchanges between different currencies.
Stellar also integrates « anchors » to easily convert fiat currencies into digital assets on the network, enabling smooth and rapid exchanges.
This approach makes financial transactions more accessible and inclusive, while providing a platform for the issuance of digital assets and new cryptocurrencies.
Lumens (XLM) tokens are used on the Stellar network to pay the very low transaction fees, in order to prevent spam attacks.
They also act as a « bridge » to facilitate exchanges between different currencies, enabling fast and inexpensive international transactions.
What’s more, XLM is required as a minimum reserve for every account on the network, guaranteeing the security and stability of the system while enabling the creation of new accounts and the management of asset exchanges.
When you buy XLM, you’re not buying shares in the Stellar platform, but the platform’s native assets, which are used primarily to pay the platform’s transaction fees, which are close to zero.
XLM was not intended to be a store of value or a savings vehicle like Bitcoin or Ethereum.
We needed massive adoption of the Stellar platform in terms of numbers and volume of transactions to see significant demand for XLM and an appreciation in the asset’s price.
But with new large participants in the network and a transaction volume of over $100 million per day, Stellar Lumens have carved out a place for themselves among the leading virtual currencies.
As the 25th-largest cryptocurrency with a market capitalization of over $2.5 trillion, Stellar Lumens is a crypto subject to day trading.
XLM was not intended to be a store of value or a savings vehicle like Bitcoin, but Stellar Lumens have become attractive investment assets for some traders.
In conclusion, we believe that the value proposition of the Stellar network hardly justifies a strong market valuation for this asset with its current use.
In fact, the price of Stellar Lumens has not been able to exceed its record level set in early 2018 over the past 4 years.
However, as the cryptoasset market is highly speculative, this doesn’t stop a number of players from speculating on XML without truly understanding how it works.
A questionable value proposition doesn’t mean the asset can’t perform well in the short term.
As proof, Stellar’s share price has followed bullish and bearish cycles similar to major market trends in recent months.
What’s more, recent partnerships could put Stellar in the spotlight and attract more private individuals to use its services.
In that case, we would also recommend buying Stellar Lumens for the medium to long term.
You can rely on our financial analysts to provide you with regularly updated Stellar Lumens reviews.
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