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Stellar Lumens (XLM) is the base cryptocurrency of the Stellar network, used to provide fast and affordable international transfer transactions. Encrypted currency is a digital asset that serves as a medium of exchange. Encryption technology is used to ensure the security of transactions, control supply and guarantee transfers. In short, cryptocurrency is a decentralized electronic currency. All kinds of cryptocurrencies can be stored in “electronic wallets”. For example, you can store Stellar Lumens (XLM) in an online or offline e-wallet, or even store it in hardware.
What is Stellar?
Stellar was launched in July 2014. It is a fast, safe and ultra-low fee platform that connects banks and payment systems. Stellar Lumens is the base cryptocurrency of Stellar Lumens, usually used to refer to Stellar Lumens. The main function of Stellar Lumens (XLM) is to simplify the legal currency transfer process and support cross-border transfers between any currency pairs.
Stellar currency is built on a decentralized open source payment network called the Stellar Protocol. Many companies have already applied the Stellar network, such as: IBM, KlickEx, Deloitte, Parkway Projects, Tempo, Wanxiang Blockchain Lab, Stripe, etc.
Stellar Networks is the main competitor of Ripple Networks because both use cryptocurrency to provide faster and more affordable electronic ledgers for companies and enterprises. Stellar Network also supports decentralized applications (dApps) and even provides Stellar smart contracts. For example, you can initiate an ICO (Initial Coin Offering) on the Stellar platform, just like most cryptocurrencies issued on the Ethereum network. The difference is that the operation of the Stellar network is simpler than EOS and Ethereum, and it can be done with these two cryptocurrencies on the front end. The value of most cryptocurrencies is closely linked to their projects, even if the project does not use the base cryptocurrency by default.
History of Stellar Lumens (XLM)
In 2014, Jeb McCaleb, the founder of the famous Bitcoin exchange Mt. Gox, and the co-founder of Ripple Networks jointly released the Stellar network. At the beginning of the launch, the network had a total of 100 billion Stellar coins.
In August 2013, Brazil’s first Bitcoin exchange Mercado Bitcoin announced the use of the Stellar network.
As of January 2015, the Stellar platform has approximately 3 million registered users, and the market value of Stellar Lumens (XLM) has reached 15 million U.S. dollars.
Is there a “bubble” in the cryptocurrency market?
The financial term “market bubble” refers to the fact that the price of an asset is too high to exceed its own value.
For example, the dot-com bubble of 1995-2001 is a typical example. At that time, the stocks of technology companies skyrocketed only because of market sentiment, and had nothing to do with the company’s earnings and development potential. In March 2000, the Internet bubble burst. The problem now is that we cannot determine the true value of cryptocurrencies. Even if a large number of investors treat cryptocurrency as an asset, its essence is not an asset. At present, cryptocurrency has not been used as a means of circulation, which has hindered currency valuation.
In any case, we should be cautious and rational when dealing with emerging technologies. It is more likely that the value of Bitcoin and Litecoin has not been overestimated; if there is a bubble, it is also those new cryptocurrencies that are spawned by market sentiment. It can be said that the cryptocurrency market is similar to the Internet bubble of the year. The value of high-quality stocks (such as Amazon) actually exists; but companies such as Pets.com that completed IPO to liquidation in just 268 days are obviously useless. Its table. Therefore, whether the market is overheating can only be judged by time.
In either case, you can use CFDs to go long/short the market.
From the end of 2017 to the beginning of 2018, the price of Bitcoin soared to $20,000, followed by other cryptocurrencies. From January to February 2018, the cryptocurrency market collapsed across the board. The price of Bitcoin plummeted by 65%, and most cryptocurrencies collapsed. Obviously, there was a bubble in the cryptocurrency market. This makes traders wonder whether there will be another bubble. The value of most cryptocurrencies comes from their development potential and whether they can promote social development in the future. However, if there is no institutional recognition, the potential value is still just the potential value. This is another issue worth considering.