Stellar dumps $2 Million worth of XLM

26 Jan, 2019
by Arthur Sillers
Rumor
Stellar dumps $2 Million worth of XLM

The team behind Stellar dumping millions of XLM tokens on the market, does this indicate a problem, or does it show that Stellar is ready to expand?

A user on Reddit posted a link to a wallet on the Stellar blockchain explorer associated with the Stellar development team. The wallet last week made a transfer to Binance of 30,000,000 XLM (worth over $2 Million).

This doesn’t necessarily mean anything nefarious is going on, but watching large transfers, especially those associated with crypto teams themselves, can predict market trends as well as give observers information about what a team might be up to.

If Stellar is selling off millions of their cryptotokens to cash, it could indicate that they are either cash-strapped, or need an injection of currency in either to expand. Posters on the Reddit discussion pointed out that many projects sell off their cryptocurrency for normal administrative costs and to pay employees. Another commentor noted that Stellar has been selling off their tokens at a large pace for the last few months

 

Yesterday, five days after the transfer, Litecoin overtook XLM as the 8th place cryptocurrency in terms of value, as reported by News BTC. None of this indicates concretely that Stellar is in trouble, but if they continue to dump currency or increase the amount that they cash out, it might prove problematic for the long term stability of XLM.

 Read more: Tether briefly overtook Stellar's XLM as the fourth largest cryptocurrency

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Read more about: Stellar (XLM) Binance

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