Bitcoin Forum

Is this a good thing for all companies which 'use' stellar?

From what I've been reading, the Stellar foundation's burned off 55 billion of the XLM it previously held and has in effect decreased the total supply of XLM to just 50 billion instead of the 105 billion supply previously. I don't see this having much direct effect on companies or services that use Stellar much at all considering this doesn't affect anything like transaction speed or anything similar, but it's definitely a good sign for traders and holders that have been accumulating the token for the last few months.

https://i.imgflip.com/3fdqad.jpg (https://imgflip.com/i/3fdqad)

Here's the transaction information about that: https://stellar.expert/explorer/public/tx/fc66377172cfeb1c464ddf6f316feee565d4cb2e8c7b14e75adb301524b40e8b


What do you think everyone? Exit scam? Hmmmm.
XLM is fork of xrp right? And I don't think the burned of their token will affect the price (pump). Because I believe that if their token has no use or no one buying those coin or using their network then it's impossible to increase in price, unless it is manipulated for pump and dump.

Not familiar with companies are using XLM right now, but isn't it there are supposed to be non-profit though? Someone correct me if I'm wrong.

however, their main competitor Ripple is a profit organization that's why more companies chooses them. One thing to note though that they have burned have of it's supply, so this could either make (pushing the price even further because of the dwindling supply) or break (maybe US SEC will now think of them as security?) Let's see how it goes.

Stellar Lumens team burnt half of their total supply to help boost the current market price. And that has nothing to do with companies using Stellar network or service. Burning half of the Stellar token supply will not affect the Stellar network's reliable in any way.

Caught something similar too but didn't know if this affects companies built upon Stellar. Thank you for clarification!

Understand! Thank you for explanation!

What did you have in mind with exit scam exactly? :D

For the effect that is given to company, I am less familiar and don't know it. Maybe it will have a little effect because this is Stellar's biggest event by burning 50% of the supply. This burning will have more effect on investors and holders of Stellar (XLM) because prices rise dramatically, investors will get more profit.

Very interesting idea. They are trying to make XLM interesting because they can´t competite with other altcoins. 2 XLM airdrop, burning, but no new partnerships or any other important upgrade that would make XLM great again. Look at the chart XLM has been falling for nearly two years! Don´t you think that something is wrong with Stellar? Even XRP is performing better.  :D

Stellar strategy is really good for investors holding this coin because if the supply decreases, XLM will be more valuable in the near future. I appreciate this very much and hope that Stellar will have more ways to make investors feel more secure when investing. For me XLM is a very easy coin to earn because they have a lot of airdrop programs for everyone involved.

Of course I still prefer to invest in this coin more because this year XLM is improving very well and will certainly reach $0.2 soon by the end of 2020.

the company is failing and now they are desperate for money so they are trying so hard to pump their centralized shitcoin. to do that they are running a meaningless burning of a big amount of supply! practically what they are doing is like if you had 10000000000000000000000000000000000000000000 "fake" dollars that you yourself printed with your printer at home and since you can't spend any of them, you burn 50% of them and say "i am burning money"!
they created stellar, they controlled the supply they couldn't sell any of it so now they are burning a big part of what they are sure they can never sell! ;)

This came out of nowhere for sure. I would probably agree that this move is a sign of desperation from the Stellar side, but I am not really up to date when it comes to the levels of Stellar adoption, all I can see that they are still well positioned on the market, but perhaps the actual usage of their product is underwhelming, so they went for this radical decision.

I read the news that XLM burning coins from 100 billion to 50 billion :o is very good for the price of XLM.
should with the burning of half the XLM supply, XLM can go up to 100% in the near future.
currently XLM has only increased by 15%.

What's going on is manipulation of the price of token at its best. Firstly stellar (xlm) Airdropped millions of tokens to create hype towards the shitcoin but when that wasn't a success they decided to burn 50% of their token current supply without consulting the community. Nobody was aware of this except the inner circle of the project which just goes to show the true colors of most of this project will entrust our funds to all in the name of investing in them, they only care about their personal gains.

Atleast when other project come up with an idea of burning tokens they inform the community days or even months before the event occurs and sometimes ask for tge community's decision on the matter but that of stellar was different, the token is just a centralized shitproject. Don't fall for this trap, it's just a pump and dumb strategy to keep their coins relevant which won't last.

I heard they did a token burn yesterday and you what it means? Reduction in supply equals increase in price. The xlm token total supply was a hundred billion and out of that huge supply a whopping sum of  fifty billion was burnt yesterday. This to me is a welcome idea and i hope for the best in time to come.

If by burning their coin can give a chance to increase the price, then that action will be worth to do at least, from yesterday till today, the price increased although not much. So if this can have more impact on the price and it attracts attention from the investor to come to them, then it's a good strategy from stellar. Maybe there is another news from them that will explain more details about their plan so we can know that they are trying to change something in their project.

I wonder why they burned it ,why it was not distributed to the poor people ;D trading strategie are created in their scenario ,they imagine big things in the future and expect investors to compete buy xlm for the long terms in my opinion there will be a pump maybe

The pump happened but the market of altcoins is pathetic as usual.
Who profited from the burn? Obviously inside traders that somehow always manage to have knowledge of important events right before they happen. I'd be more than happy with a 10% jump in a few hours after I bought.
Sadly adoption is an issue with Stellar as with all altcoins, but I highly doubt that 50 Billion tokens make a difference from 100Billion. Since IBM is involved in this I will keep watching the Stellar news but my mind will not change easily. For me it's just another altcoin that is going to zero.

a bit strange in my opinion the strategy undertaken by the XLM developer, Not the product / marketing that was improved, but burned half the tokens.

will reducing the supply of tokens continue to increase prices without increasing products, in the future?
certainly not in my opinion. except bitcoin, surely everyone knows the reason if this coin is limited and that will happen later (Bull).
in my opinion this is just market manipulation and investors only want to make profits later on, even though this is not the case.

I do not know what has happened to Stellar all this time, try asking with more specific or more complete information, so that people here can know and not feel curious about the question that you ask, because the price in the market, Stellar has not gone up so much .

In addition to what others have said. The company burned almost half of their total token supply which is $4.7billion in other to create some pump in price of the token but you need to understand that XLM is a centralized coin and centralized coin can be manipulated anytime which mean the token burns may not also trigger surge in price of the token.

XYM are not the only altcoin that has burned huge amount of their tokens. CryptoMarketAd also burned about 4.8billion of their token and it didn't skyrocket their token price at all. Burning of tokens is like removing waste products entirely from your system. XYM burning their token won't create any impact in their price