The last few days have seen Stellar (XLM) investors get all panicky after a drastic drop in the price of this crypto. However, if you are strong enough to hold on to your Stellar, then there is some good news for you. Stellar is one of the 28 blockchain projects that have been selected for assessment by a scientific institut that will be working under the Chinese ministry of industry and information technology. So why is this important to Stellar holders?
Well, China is one of the most important crypto markets in Asia alongside Japan and South Korea. However, in the recent past, the Chinese government has been very hostile towards cryptocurrencies, to the extent of banning centralized exchanges, and the launch of ICOs. This has dampened the mood of Chinese cryptocurrency investors. Big players are hesitant to put their money into crypto under such circumstances.
However, now that the Chinese government is creating this assessment with only a select few cryptos, it is only natural that investors are likely to take more interest in them, more than any other blockchain projects out there. In the near future, we are likely to see a significant surge in volumes of these 28, and the subsequent rise in price. As such, anyone holding Stellar (XLM) at the moment is likely to benefit from a price rally, driven mainly by mainland Chinese investors.
Then there is the issue of adoption. Stellar is one of the blockchain projects that have seen a significant level of adoption up to this point. For instance, Stellar Lumens already has a deal with IBM, a deal that many speculate will see Stellar become the coin of choice for Central banks. With its inclusion in this ranking, Chinese companies including Chinese banks could look to take advantage of this favorable environment and adopt Stellar Lumens. A massive adoption in China could create a ripple effect where companies all over the world move to adopt the stellar blockchain too.
The inclusion of Stellar [XLM] in this ranking is also important because it could lead other countries that have a tough stance on crypto to follow the same route. That’s because we live in a globalized world, and the actions of one nation, especially a country as important as China are likely to be followed by other nations. It would not be surprising if the EU and the U.S follow suit and create similar institutions for rating cryptos. This would be guaranteed to lead to the acceptance of crypto across the world, and Stellar is well positioned to ride this wave of adoption.
In essence, anyone holding stellar at the moment and is strong enough to hold stands to reap big in the future. The future looks bright now that China is showing a softer stance towards crypto. Besides, the current price drop has nothing to do with Stellar. It is a market wide drop, and once it settles, Stellar (XLM) will rise.