The crypto community is suspicious of the recent XLM halving burning case
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Answer The crypto community is suspicious of the recent XLM halving burning case
A few hours ago, it was announced that the management behind the Stellar project had destroyed 55 billion XLM units, which is estimated to be worth about $3.8 billion.
The Stellar currency rose by 20% after it was announced that half of its supplies were burned
The move was revealed at the inaugural Meridian Conference in Mexico.
As expected, the price of the “XLM” coin started pumping and rising.
The price of the “XLM” coin increased from $0.07 to $0.09, according to Tradingview.com.
It has now reached a six-week high but is still more than 80% down from its 2019 high.
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The crypto community is suspicious of the recent XLM halving case:
The price pump was somewhat predictable and the dump is likely to take place again soon because the token burn came from the total supply that the institution still controls.
The circulating supply of 20 billion has not changed, and many observers have taken note of this.
Where the trader and analyst “Luke Martin” remained skeptical about the company’s latest announcement and said:
A small number of individuals still control the currency supply.
Altcoins can hold great trading opportunities but it is hard to justify holding so many long-term contracts without equity and at the mercy of a small central team.
if XLM dollars It can cut the supply in half, and they can also double it.
Alts can be great business opportunities.
But it’s hard to justify keeping so many things long-term without equity and at the mercy of a small central team.
– Luke Martin (@VentureCoinist) November 5, 2019
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Luke Martin continued his comment by saying:
This is true of altcoins in general and not the XLM project specifically which seems to have good intentions behind the burn.
As Stellar explained in its press release:
The network and community around Stellar are now strong enough to allow the company to carry less weight
We’re just part of a much bigger group, and the money we pay should reflect that.
Trader Nick Carter also seemed skeptical about the numbers, adding that the price pump was in no way reflective of the number of crypto-tokens destroyed.
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where he said:
I’ll be the one to point out the fact that XLM is only up 20% on the news and 100% that 50% of supply is being burned is strong evidence for the deflationary burn-out thesis.
He went on to say that there is no predictability with permitted regulations and that a single entity has unilateral authority over more than half of the total supply.
It appears that the same concerns about Ripple and the centralization of its XRP token are now being applied to its sibling, Stellar.
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Despite the strong partnerships… Ripple (XRP) is the worst coin in terms of price performance in 2019
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