- Stellar Lumens (
XLMUSD
) has seen strong gains so far in November, generating month-to-date returns of 21.8%. Although the general cryptocurrency market has performed well in November, XLM’s success can be primarily contributed to Blockchain.com’s announcement that it will airdrop USD$125 million worth of XLM into Blockchain wallet holders’ accounts who sign up for the airdrop. While the amount to be airdropped in each wallet has not been confirmed, Blockchain.com is promoting the airdrop as the largest consumer giveaway ever and the largest cryptocurrency airdrop ever.
- Blockchain.com selected Stellar to conduct this large-scale airdrop because it is “built for scalability” and has “an active and growing ecosystem”. The airdrop of roughly 500 million XLM, which represents ~2.64% of the coin’s total supply, could further contribute to Stellar’s already active and growing ecosystem -- in a decentralized application (DApp) platform like Stellar, active users are critical to driving value in the ecosystem’s underlying coin. Blockchain.com wallet holders that receive XLM in the upcoming airdrop are required to sign up for the event, meaning these individuals are likely users that have an interest in Stellar -- there is a strong probability that some of these users will begin using Stellar on a regular basis as a result of their newly received XLM. There is a risk, however, that users to receive XLM in the airdrop will immediately sell the tokens in order to realize profits. If a significant number of users in the airdrop sell their tokens upon receiving them, downward pressure will be put on the value of XLM.
- On a technical basis, XLM looks fairly solid. XLM has continued to set higher-lows since falling to USD$0.18200/token on September 11th, 2018. XLM is also beginning to see consolidation in its moving averages, indicating that a large price move may soon come.
- Quantamize’s AI Machine Learning 3-Day Crypto Signal for XLM is “Buy” and maintains an accuracy score 67.35%.
- How are you playing XLM as we move through the end of 2018? Comment below and let us know what you think!