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RE: Stellar Lumens Up 1050% in 4 days? Any ideas why? (STR/XLM)
Stellar is a competitor of Ripple (XRP). You are seeing a game of catch up here. People who missed out on XRP signed up for Stellar. You are seeing just how powerful hype can be, especially when it's on platform that makes sense to the average investor. Both XRP and Stellar offer more cost-effective solutions to big banks. It makes too much sense and sounds too good to be true, but anyone that has been in crypto for a long time knows that the solution is real. It's not a matter of if and when. It's a matter of WHICH solution banks pick. We live in a winner take all world, but for now, it's anyone's guess who might win.
Good point. That makes sense. Everyone wants to get in at the ground floor for the next big altcoin. Hype really is driving prices lately. I wonder if it's also that altcoins are starting to find a broader appeal, contributing to the mania. People will chase anything that goes up 50 to 100% in a day, creating a self-fulfilling prophecy. It looks like reversal is finally happening with it. Everything reverts to the mean in the long term, but things can get crazy in the interim.
@kingofdew @hasmatt - I bought STR @ .0004750 yesterday. This thing was climbing quick, almost doubling. Thought it would keep going and bam. I think I just saw the STR sitting at .0001650 and right now the XRP is sitting at 0.00009247, down from .00014808. I'm new to trading and just joined Steemit. At the same time, I'm educated in the overall concept of business with a concentration in fin/dig. mktg. so while I lost a nice chunk of the first funds I played with in the market - I also learned some lessons. Holding those coins for the long haul and grabbing that STR giveaway to BTC AND XRP holders.
Something I noticed was missing from this post originally was that XRP was included in the STR giveaway!. Stellar was inspired by XRP so you can almost see the two more as complimentary coins that will likely get pumped back up prior to the giveaway. Long term, it's a great hold anyway because one of them are going to succeed long term, most likely. Lessons learned and it's a fun time - good luck trading!
I feel like I'm still missing something though. Why does a giveaway pump up the value of a coin? It seems like it would dilute the coin by expanding the circulation. Is it mainly because of the hype that the giveaway creates? I feel like if someone owns a ton of BTC, they'd be better saving their coins and getting Lumen when the giveaway happens instead.
What has happened in the past after a coin does a major giveaway? Do prices rise or fall?
@hasmatt - great question! You know, I was thinking about doing some research on that. Wouldn't be too hard tbh - Stellar.org did the first tier giveaway already. Not sure what happened to the price, but we could easily look.
Honestly, I don't want to look into it too much - though I should because I'm holding 15k at 2x the current price...my theory is that big hitting whales will come in and buy XRP prior to the June 27th STR giveaway, get free STR and probably pumping and dumping all in the process. I've also read that STR and/or XRP is the fastest transaction. Also have been seeing a lot of great media around both orgs.
Market manipulators would love this set up. They are only giving away 1% (1 billion STR) to XRP holders and 19% (19 billion STR) to BTC holders. If you look at the prices, and I haven't totally done the math, but seem like a bigger potential return playing with daily returns on the volatility of STR/XRP and the gamble of whales creating some waves. What do you think? Always curious for insight!
You need to own 10 bitcoins to claim 1,911 lumens, or $72 at today's prices. My guess is bitcoin holders will just hold on to rather than sell, what's the point at that price? This giveaway has been know about for some time. Perhaps it's is already priced in. You're right about the similar giveaway which was carried out last year between July and October, the price was more or less static during that time. Perhaps some bitcoin holders will not even bother to claim. Things are different this time however. I'm guessing a lot more people know of Stellar now than last year. And that'll mean more people are likely to claim. I foresee a distribution resulting in a rally in price rather than a depression myself, perhaps not unlike the recent rally. The next couple of months will not be boring, that's for sure.
Cause after the giveaway Stellar only hold 5% of remaining coins. Ripple continue to hold +63%. Now if I were a bank seeking future stability...
excellent insight, thank you for sharing
Stellar wasn't just inspired by XRP, Stellars founder is the creator of XRP but split from XRP due to business decisions so he forked the XRP code and did his own thing.