Stellar is a decentralized platform for the exchange of any kinds of where the cryptocurrency called Lumen (XLM) actually is an exchange agent. The idea behind this project is to provide easy and affordable exchange of currency and cryptocurrency assets.
How it all started?
Stellar is often compared to another leading cryptocurrency, Ripple, and many experts point to a number of Stellar’s advantages over their rival. Many users have been expressing concerns about one disadvantage of Ripple – its centralization. In fact, the Ripple platform has a closed source code and is managed by a commercial organization Ripple Labs, which, among other things, is also the largest holder of coins, and therefore, can influence the rate. Yet in 2013 one problem was solved – Ripple Labs opened the programming code of the platform. However, users still talked that the cryptocurrency needed a fork. And it was made in 2014 by Jed McCaleb and Joyce Kim, who developed Stellar. Initially it was based on Ripple protocol, but in 2015 the developers created their own Stellar protocol.
What is Stellar about?
As it says on the project website, Stellar is a platform that integrates banks, payment systems and people by means of special software for fast, reliable and at almost no cost transfer of money and cryptocurrency assets. Stellar operates with all cryptocurrencies, as well as the banking sector.
The Stellar system, like Ripple, does not provide mining, so one can only buy coins. In addition to all kinds of exchange services, the lumen coin is also traded on major exchanges, such as Binance, Kraken, Poloniex, Bittrex, Bitfinex, Koinex, etc. Lumens entered cryptocurrency exchanges quiet recently, in 2017, about three years after the project was launched.
There is a special Stellar wallet designed to store and operate lumens. As many as 13 different wallets are mentioned on the website, including desktop, mobile and online wallets.
Stellar rate dynamics: what was happening and what can happen
Initially, the price of a coin was only $0.06, and in spring, 2017, it decreased to $0.01. In autumn, 2017, Stellar coins entered other exchanges. Besides, the information appeared that IBM was going to cooperate with the project to create a global transaction system. Investors got interested in this new virtual currency and soon its price increased up to $0,2 in December 2017, when the cryptocurrency market was doing extremely well. Early in 2018, many crypto investors were desperately looking exchange rates of cryptocurrency that had just been bringing unprecedented profits and now experience a big recession. When the cryptocurrency market went down, it seemed not have taken Stellar on board. The price of lumens increased to 70 cents.
Today (early May 2018), Stellar coins rate is approximately $0.42, and the cryptocurrency is among top-8 in the world by market capitalization. Many agree that Stellar has good prospects to increase in price, as it is in fact a more decentralized, reliable and convenient alternative to Ripple and has many partnership agreements with other companies. The most optimistic forecasts state the price is to increase up to 10 dollars or more in the very near future. However, nobody can say that for sure. Anyway, it would be perhaps rather reasonable to include lumens in a diversified crypto-investment portfolio, but those investors who are looking forward to make a fortune on cheap but promising coins can also actually never succeed.