The bitcoin wallet blockchain announced that they would be airdropping millions of dollars’ worth of stellar (XLM). The idea behind this airdrop is to drive the adoption of cryptocurrencies and stellar (XLM) in general. According to Smith, the blockchain CEO, the reason why they chose stellar over bitcoin or the other cryptos is that it is best suited for mass adoption.
He stated that “XLM, enables quick, low cost, worldwide transactions, even when millions of people are using it at once.”
This is a huge validation to the stellar blockchain, as a platform that could replace existing payment methods, since it is faster and way cheaper than them. This is a big deal because payments are big business, and payment companies handle billions of dollars every day. In essence, if stellar were to gain dominance in this market, the volumes of transactions it would handle every day could push it into double-digit valuation. Besides, the decision to do an airdrop is actually genius when it comes to pushing stellar in the market. It is a method that is tried and proven to work. In its early days, Paypal, which is quite successful in the payments market was giving cash giveaways, and it gave them lots of early clients before it hit the mass market. As such, it could work in driving the mass adoption of stellar (XLM) as well.
But it’s not just the payments market that stellar is looking to dominate. This blockchain stands a good chance of displacing Ethereum (ETH) as the top assets issuance platform as well. The Ethereum blockchain gained dominance as a top asset issuance platform thanks to the explosion of ICOs as a method for raising capital by startups. However, it is clear that this model has outlived its usefulness. Today, there are more scams than legit ICOs in the market.
Pump and dump schemes in ICOs have become the norm. What’s slowly emerging as the replacement to ICOs is the security token. Security token offerings are slowly taking over because they are better regulated. They are also a lower risk for investors because, by buying a security token, you are buying into a business that is in existence, which minimizes the risk of failure by a huge margin. The STO model is so much in demand that exchanges are being set up specifically for security tokens. If this model gains traction, stellar, which is the better-known security asset platform could see an exponential surge in demand.
The ICO model was mainly retail driven and it pushed Ethereum to over $1500. Hypothetically, this means that an explosion of STOs on stellar, coupled with the increased interest of institutional investors in STOs could easily see Stellar see double-digit valuation. Though coin supply may make difficult for stellar to hit triple digits, a $10 – $20 value for stellar would be a realistic possibility. This would be a huge return for anyone invested in stellar (XLM) while it’s still trading at under a dollar.
Stellar (XLM) is slowly shaping up a good project for investors looking into projects that have a real use case, a use case that transcends speculation.