CRYPTANALYSIS - HOUSE VIEW ON KEY ALTCOINS

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Disclaimer: Cryptomover is not a licensed financial advisor. The information presented in this piece is an opinion, and is not purported to be fact. Cryptocurrency is a volatile virtual commodity and can move quickly in any direction. Cryptomover is not responsible for any loss incurred by following this advice.

 

13.STELLAR (Published: 26th Jun, 2017)
BASIC INFORMATION
Stellar was released in 2014 by Jed McCaleb, a co-founder of Ripple and founder of MT. Gox. Its main goal is to act as a bridge between fiat and digital currencies to anyone in the world for free instantly. Unlike Ripple which focuses on bank transfers, Stellar targets on the connections between banks, payments systems, and people. With low-cost financial services, Stellar can help fighting poverty and developing individual potential.
Lumens (XLM, previously Stellar STR), is the native coin on the Stellar network. It has a built-in, fixed inflation system and new Lumens are distributed each year. The Lumens can serve as an anti-spam role by implementing a transaction fee of 0.000101 Lumens to prevent malicious intentions from flooding the network. In addition, it can be the bridge between two currencies when there is not a large direct market.

FUTURE DEVELOPMENT
On May 2017, the Stellar blog summed up that Lightyear.io has successfully launched. It is a company with focuses on global partner integrations, as well as marketing and distributing the Stellar network.
On the other hand, Stellar has joined WanCloud, a Chinese new blockchain product which provides an ecosystem for open-source blockchain protocols to be localized and made easily accessible to the Chinese development community and enterprise users. WanCloud will add more Stellar nodes in China, provide free sandbox environment and support applications built on top of the Stellar protocol.

TRADE SUGGESTIONS
The Stellar network is aiming to provide a convenient and accessible bank solutions in Africa for the unbanked. Unlike Ripple, it has a greater aim of including everyone in the network. However, it suffers from the same problem as Ripple. Lumens, as the bridge currency, are meant to be stable and they do not necessarily become valuable even if the network becomes widely spread.
There was a significant rally of price in May, and then it kept fluctuating. In my opinion, the Stellar network could be useful but the Lumens are not. Hence, I believe the price will be dropped near to its initial level in the long run so I will suggest selling it.

INVESTMENT RISKS
The Stellar network is very similar to that of Ripple, and therefore they are believed to be competitors. However, with a huge difference in market capitalisation while Stellar does not really providing distinctive features, it could be washed out of the market eventually and the Lumens will become worthless.

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