Crypto News – 17 May – David Schwartz on Stellar’s downtime, Brian Armstrong on institutional investors and more
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Daily Crypto News- May 17, 2019
1) European Central Bank on crypto: European Central Bank, the central bank for euro and the entity that administers the monetary policy of the European countries, released an occasional paper titled ‘Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructure’.
Read more at https://bit.ly/2w4PfTv
2) Poloniex delists nine crypto-assets: In yet another blow to the crypto-world, regulatory uncertainty in the US market has led to the delisting of nine cryptocurrencies from the leading exchange, Poloniex.
Read more at https://bit.ly/2VreF88
3) Amazon files crypto-based Proof-of-Work patent: After Jaguar, Microsoft, and Nike, a new cryptography-focused patent has surfaced on the web, one attributed to Amazon. While the patent, “Generation of Merkle Trees as Proof-of-Work,” was filed by Amazon on December 23, 2016, it was made public recently after Morgan Creek’s Anthony Pompliano broke the news.
Read more at https://bit.ly/2EgFk1T
4) Bosch to use Ethereum blockchain: Bosch, the multi-national engineering giant, joined hands with Ethereum to deploy blockchain technology and smart contracts at car-charging stations. Although still in its testing phase, Bosch is partnering with the Germany-based electric utility company EnBW to test out a prototype of blockchain-based car charging stations.
Read more at https://bit.ly/2JOilP5
5) Cryptopia answers users’ queries: Cryptopia released a new statement pertaining to its liquidation where the firm answered all the questions asked by the customers. Notably, the exchange had made it explicitly clear that they will not allow customers to withdraw their funds until the investigation is completed, emphasizing that it could take months for this process.
Read more at https://bit.ly/2JK9X3a
6) University professor to launch cryptocurrency: In a new development which could open a new era in the history of the cryptoverse, Emin Gun Sirer, a professor at Cornell University, is looking at launching his own cryptocurrency and network. He will be receiving funding from several big VCs in the field.
Read more at https://bit.ly/2wdAsGp
7) Binance hack: Scam alert; Even though the funds have not been recovered yet, another scam seems to be brewing in the shadow of these funds. A Reddit user suggested on the r/Cryptocurrency subreddit that the ‘team’ that hacked Binance was selling the stolen 7,000 BTCs, with a 70% discount.
Read more at https://bit.ly/2Ec1fqM
Why You Should Consider Investing in STELLAR (XLM)
Stellar (XLM) is a cryptocurrency, a digital asset, a medium of exchange for secure financial transactions. Cryptocurrencies use a decentralized control as opposed to common central banking systems. This decentralization is usually controlled by a distributed ledger technology like blockchain processes.
The well-known Bitcoin currency, first released in 2009, is considered as the first decentralized cryptocurrency. However, since its release, over 4.000 alternative cryptocurrencies have been created. Stellar (XLM) is one of them, and it may unveil more value than most current altcoins.
The internet is made up of network servers containing our date, websites and applications. Like the Internet, Stellar is a network of decentralized servers in many locations that power the distributed ledger. This ledger records every transaction in the system for people and companies alike.
A complete copy of the global ledger exists on each Stellar server. The network become more robust and secure with more servers as they communicate with each other to verify transactions and sync the ledger periodically. The ledger records your money as credit, issued by anchors.
Anchors act as bridges between a given currency and the Stellar network. Banks and payment processors are an example of real-world anchors. The credit is issued to your online account, just like a virtual wallet, in exchange for deposits. Anchors have to be trusted to hold your money. Credit can be sent and received between people of the network.
Stellar has a distributed exchange so you can also send USD credit using EUR credit between your friends. The network will do it at the lowest rate possible. They will then receive the money which can then use by withdrawing using an anchor supporting the currency.
One lumen (XLM) is a unit of digital currency, like a bitcoin. Lumens are the native asset of the Stellar network. While you can’t hold a lumen in your hand, they are essential to the Stellar network—they contribute to the ability to move money around the world and to conduct transactions between different currencies quickly and securely.
Now that you know how crypto works and what Stellar does differently, why should you consider starting investing in it?
Deloitte, one of the world’s largest financial consulting firms, set out to innovate in the core banking space with blockchain technologies. They had a prototype that reduced transaction costs by 40%. Each transaction resolved in 5 seconds. Eric Piscini said, “the client was amazed by how fast and how cheap those transactions were.” In other words, this partnership launches the cryptocurrency world to a new higher level.
Although many recall all the buzz, regarding the Bitcoin value crash and the consequent controversy, Stellar invests in a continuous development approach. The partnership between Stella Lumens and IBM runs deep. They’ve announced steady progress on a wide range of shared initiatives. IBM along with 12 other banks across the world have joined hands for the faster transaction of financial assets throughout the world.
What about predictions? Stellar has been maintaining a steady trend since the beginning of 2019 with the price of the coin peaking up to 0.13 USD in the April. Stellar’s recent listing on the coinbase platform is now making it more accessible to the traders, and hence a price surge of over 75% can be expected till the end of 2019 with the highest peaking to almost 0.15 USD.
Google and other big companies already predicted that in the next 2 years, the value of each XLM coin will fall between 10 USD and 100 USD. Nothing is certain as cryptocurrency come and go, however, Stellar seams to be the one to bet on when it comes to target a bigger future revenue in the near future.
Stellar’s Hour-Long Shutdown Shows That Stellar isn’t Completely Decentralized, What Does It Mean For Stellar Price Prediction
The Stellar network has done well enough since it’s launch. But as it’s always the case there isn’t any perfect Blockchain solution. The network is always evolving as startups look for ways to improve their protocol and facilitate better user experience. Now, the Stellar Blockchain reportedly hit a snag in recent days after reports came to light that the Blockchain network went offline on May 15 for about 67 minutes.
Stellar Lumens News Today: What Caused the Hour-Long Shutdown?
The hour-long halt doesn’t speak well of the network. Many claim the shut down occurred as a result of Stellar’s Consensus Protocol failing. But What really caused Stellar’s hour-long shutdown? The Stellar Development Foundation believes it wasn’t a failure of Stellar’s Consensus Algorithm. Via a blog post regarding Stellar’s shutdown, the Stellar Development Foundation remarked that the network failed because new nodes took a larger amount of consensus responsibility at an early stage.
Via the aforementioned blog post that was published after the reports of the incident came to light, the Stellar Development Foundation had this to say:
“The halt didn’t occur because Stellar’s Consensus Algorithm failed . In fact, the consensus worked as originally intended. For Stellar’s system, a temporary halt is often preferable to the confusion of a fork. However, the incident from yesterday shows that Stellar must look for better tooling around uptime. The network needs better status monitoring for its validators. Stellar has to ensure that it is easier to re-initiate a validator after it going down.”
Stellar Lumens Price Prediction: This Isn’t the First Time Stellar Was Accused of Not Being Completely Decentralized
As reports of the halt spread, analysts, enthusiasts and experts, all started to share their thoughts on Stellar with many criticizing the platform not being decentralization enough. The fact that a management team can put the network down or make it halt is enough to call the network a heavily centralized protocol.
This recent predicament with Stellar isn’t the first time the network has been accused of being a centrally controlling network. Earlier in the year, a group of researchers heavily criticized XLM and Stellar. Accusing the network of a lack of decentralization. According to the group all the nodes in Stellar can’t run the Stellar consensus protocol should only two nodes fail. The two nodes are operated and controlled by one organization, known as the Stellar Development Foundation.
Stellar Lumens Price Prediction: Many New Nodes Were Added to Stellar’s Network
However, the Stellar Development Foundation stated in its blog post regarding the shutdown, that even though it is accused of being over-centralized the opposite is the case. The halt occurred because many new nodes were included on the network. Then Stellar added that this situation caused the nodes to take more than enough consensus responsibility too early.
Many cryptocurrency enthusiasts have different ideas about what happened. Whatever the truth may be in any case, the biggest losers for such a situation is always the users. It is users who are affected with shutdowns, whether the network is if centralized or not decentralized enough. The Price of Stellar Lumens was trading at $0.132472 as of press time according to CoinMarketCap. The digital asset is down by 0.96% in the last 24 hours.
How Will This Affect The Price Of Stellar Lumens?
The price of XLM was not largely affected by the shutdown. It only saw a small loss of value and seems bullish in the short term. The network has lots of viable partnerships to push its value through the roof. The coin is occupying the ninth position on Coin Market cap.
Price Analysis: XLM Is Pulling Back Towards $0.12 level
Resistance levels: $0.14, $0.16, $0.18
Support level: $0.12, $0.09, $0.07
XLM/USD Price Long-term Trend: Bullish
The XLM price is on the bullish trend in the long-term outlook. XLM had a massive bullish move last week on the daily chart. That bullish momentum propelled the coin to the north side, in which $0.09, $0.12 and $0.14 levels were broken upside and the XLM price topped at $0.16.
Then, the price started having a correction. A massive bearish pin bar emerged at the supply level of $0.16 made the price start having a correction. On May 17, another daily bearish candle pushed the price down towards the previous low of $0.09 level before it was rejected by the Bulls. XLM price is currently ranging in between $0.14 and $0.12 level.
In case, $0.13 level hold the price and the bears intensify their pressure, $0.12 demand level may be penetrated and expose the price to $0.09 level. Should the Bears lose their momentum then XLM price may resume its bullish trend.
XLM/USD Price Medium-term Trend: Bearish
On the medium-term trend, the XLM price is bearish. The bullish momentum that started last week on the 4-Hour chart has been interrupted today by the Bears at $0.14 levels. At the opening of the XLM market today, a bearish engulfing candle emerged that triggered the bearish pressure.
The price started declining towards $0.133 level. The price action has formed a descending triangle in the 4-hour chart of the XLM market.
Breaking out of the price at the lower trend line of the triangle may lead the price towards $0.11 level in case the $0.13 level does not hold. The Stochastic Oscillator is above 25 levels with the signal lines pointing down to indicate sell signal.