Given the market share stablecoins have accumulated in the cryptocurrency industry today, it is evident this form of money cannot be overlooked. When it comes to converting these stablecoins to traditional money, there are still plenty of hurdles to overcome. Stellar’s new SEP-6 standard may solve a lot of these problems moving forward, albeit it remains to be seen if this concept can deliver the goods in the long run.
THE SEP-6 STANDARD EXPLAINED
As the name somewhat suggests, SEP-6 is a new standard introduced as part of the Stellar ecosystem. Unlike traditional cryptocurrencies, tokens, and assets, Stellar is not following a path similar to Bitcoin or Ethereum. Instead, it targets traditional finance first and foremost, which also requires some slightly innovative ideas and solutions along the way. This new standard will make things a lot more interesting, at least where the stablecoins on the market today are concerned.
To be more specific, any wallet and service provider integrating this new standard will introduce additional off-ramps for their users. By allowing wallets and other clients to interact with a variety of anchors, a more engaging ecosystem and ecosystem is created. This also paves the way for global remittance solutions on the Stellar network by sending anchor stablecoins to others.
STABLECOINS TO A BANK ACCOUNT
Most people are familiar with stablecoins today. These tokenized assets represent a specific fiat currency and can be transferred on a global scale at little to no cost. That in itself is always interesting to keep an eye on, although it is still pretty difficult to cash out these tokenized assets in a convenient manner. This is where SEP-6 can make a positive impact as well, as recipients can use the asset offramp and have funds deposited into their bank account accordingly.
As one would come to expect, it is now up to individual stablecoin issuers to integrate this standard and unlock the true potential of their tokenized asset. For the time being, it seems the options are somewhat limited in this regard, but there is a genuine chance things could improve moving forward. It would certainly make these tokenized assets a lot more interesting to people all over the world, instead of only using them to get in and out of cryptocurrencies.
MULTIPLE OFF-RAMPS EXIST
Despite the pending integration of SEP-6 into more commonly used stablecoins and tokenized assets, it seems some initial progress has been made already. Three off-ramps are supported at this time, which includes AnchorUSD, Stellarport (for BTC, ETH, and LTC withdrawals) and Tempo (withdrawing euros to any bank account). All of these options are prominent in their own regard, although it remains to be seen how long it will take until other big players take notice of this new option. A USDT-based off-ramp would be rather interesting to see, assuming it is ever created.
Stellar Lumens Surges As IBM, Binance and Poloniex Announcements Drop
Stellar price was deep in the red zone yesterday with many other cryptocurrencies. Its price hasn’t also impressed traders for the past week as it experienced price swings. Today, it has performed a lot better by surging by 14% after the Libra bears eased off the market. This prominent bank coin recorded an impressive correction in double digits.
Stellar (XLM) Price Today – XLM / USD
After the second hearing of David Marcus of Calibra, BTC price dropped to $9,500 from $11,500. The altcoin market was not spared in the bloodshed. The total market cap of the crypto market dropped under $250 billion for the first time in a while.
Stellar Lumens Rose By 15% in The Last Hour
Stellar has not had a good year, but it surged by 15% in the past 24 hours. Also, the token surpassed Tron as it took back its position at the tenth spot.
Some reasons for this surge include the announcement for Poloniex and IBM. Poloniex is an American crypto exchange and it announced that more than 1.2 million XLM was distributed to customers of the exchange due to XLM’s inflation.
The second catalyst is the blockchain project of IBM called ‘World Wire’ it uses the stellar protocol and has helped pump the altcoin’s price. IBM recorded a great second quarter as reported by CNBC. The shares of the company saw a 4 percent surge and corrected immediately after. The share price of the company has risen by 26% since January 2019.
LATOKEN is the largest XLM traded exchange as it held 14% of the trade volume through the XLM/USDT trading pair. Some other exchanges with high volumes include BW.com, Bit-Z and Fatbtc.
Binance is Distributing $775,000 Worth of XLM to Binance Users
The largest cryptocurrency exchange in the world, Binance, has revealed that it earned about 9.5 million XLMs from crypto staking. It also revealed that $775,000 of those tokens would be given to Binance users.
About a year ago, the Stellar team advised Binance to stake rewards. They did this by changing the different parameters on the online crypto wallet and offline wallets. Binance followed the recommendation and earned more than $700k worth of XLM tokens.
Binance is Adding Support for XLM Staking
Binance is also making plans to add staking support for XLM on the exchange. At the moment, Binance distributes NeoGas, Ontology Gas, Bittorent Tokens and VTHO for NEO, Ontology, Tron and Vechain holders.
The company’s management has noted that staking several cryptos on the platform is rewarding. HODLing can even help some users generate some income on the side.
Binance announced that Stellar Lumens staking support will begin on July 20. Also, it will take snapshots of users XLM balances daily in their exchange wallets. This process will continue for a 40-day period.
After checking the XLM accounts for the one month plus period, on Sept 1, 2019, the average XLM balances will be calculated based on the snapshots that were earlier collected. Then the management will complete the distribution of XLM rewards to customers which were earned from staking.
However, to be eligible, users must have some XLM in their exchange accounts to be able to receive rewards. Then the 9.5 million XLM which was generated through staking would be distributed to users on the platform that maintain some XLM in their balance by July 20 until September.
Stellar (XLM) Explodes: Price is up by 8.26%, Essentially Ousting Tron (TRX) to Assume 10th Spot
After a rather turbulent past few days, Stellar Lumens (XLM) seems to be out of the woods for now with a more than 7% positive correction. At the moment, XLM is the best performing top 10 cryptocurrency, outshining Litecoin.
According to data from CoinGecko, XLM has a market capitalization of $1.66B which exceeds Tron’s market cap by $133,575,573, therefore assuming the position of the 10th largest digital coin as Tron (TRX) follows behind.
Libra’s hearings before Senate opened a Pandora’s Box of downward correction for XLM. Subsequently, XLM dipped to $0.075. Today, however, the digital asset is soaring. At press time, XLM is trading at $0.084896, with the market flashing green.
What’s This Price Surge Being Attributed To?
Yesterday, we reported that Poloniex exchange had distributed approximately 1.2 million Stellar Lumens to users as part of the Stellar Inflation Reward. Poloniex exchange had reported this via a tweet. Many believe that this has certainly positively impacted the price of XLM.
Another possible catalyst is the collaboration between the Stellar Network and the IT behemoth, IBM. Earlier this year, IBM and the Stellar Network launched a joint project dubbed IBM Blockchain World Wire. After its deployment, Stellar Network’s native coin, Lumens (XLM) recorded moderate gains.
Now most recently, CNBC news outlet revealed that IBM had reported “better than expected” second-quarter earnings as of Wednesday, July 17. This resulted in a 4% surge in IBM’s share prices.
Now you must be wondering how IBM earnings impact XLM’s prices. Well, IBM’s performance and Lumens price move in tandem. This means that the surge in share prices for IBM could have excited the XLM community leading to a surge.
Late last month, XLM’s price slipped by 8.2% within 24 hours, following the exit of Jesse Lund and CTO Stanley Yong from IBM. Lund was the driving force behind the World Wire payment network, as CoinDesk reported. This goes further to indicate the undeniable interrelationship between IBM and Stellar Lumens (XLM).
Price Upswing Not A Long-term Bullish Signal, But It’s Great For XLM’s Reputation
Albeit a 7% surge doesn’t necessarily signal a long-term bullish bias, it’s crucial to acknowledge that such a short-term rally portrays a great picture for XLM among its traders and investors.
This is a great affirmation to XLM investors that it is still a viable investment, pumping prices by 7% over a 24hr period, outpacing top cryptocurrencies like bitcoin (BTC), ETH and XRP.
Binance to distribute 9.5 million Stellar Lumens earned from staking, will add XLM staking support
Binance, the world’s largest cryptocurrency exchange by trading volume, recently revealed that the platform had earned 9.5 million Stellar Lumens (XLM) from staking the cryptocurrency.
$775,000 of XLM Will Be Distributed to Binance Users
In August 2018, the Stellar team advised Binance’s management regarding how to earn staking rewards by changing various parameters on the exchange’s hot (online) crypto wallets and cold storage (offline) wallets.
After following Stellar team’s recommendations, the Binance platform managed to earn $775,000 worth of XLM tokens (at current market prices). Binance documented the amount earned each week from staking XLM since August 31, 2018.
Adding Support for XLM Staking, Distributing 9.5 Million XLM Earned from Staking
The Binance team is now planning to add staking support for XLM on its platform, and the leading exchange will also share the 9.5 million XLM it earned through staking. Currently, Binance’s platform distributes NeoGas for NEO stakeholders, Ontology Gas tokens for Ontology investors, BitTorrent tokens for TRON investors, and VTHO (“VeThor”) tokens for VeChain holders.
Binance’s management noted that staking multiple cryptocurrencies on its platform can be rewarding, and even HODLing certain tokens may allow users to generate a substantial amount of passive income.
Stellar Lumens Staking Support Begins on July 20
On July 20, 2019, Binance’s platform will begin supporting staking for Stellar Lumens, and it will take daily snapshots of users’ XLM balances in their exchange wallets. The Binance team intends to check customers’ Stellar account balances for a 40-day period.
On Sept. 1, 2019, the average user XLM balances will be tallied based on the snapshots collected. Binance’s management will then complete the distribution of customers’ XLM rewards earned from staking.
Users Must Have XLM in Exchange Account to Receive Rewards
Notably, Binance will distribute the 9.5 million Stellar Lumens it generated through staking to all platform users who maintain XLM balances in their exchange wallets, beginning on July 20, 2019.
As explained by the Binance team, users who stake XLM tokens will receive a “bundled bonus” payment of XLM staking rewards. The bundle will include users’ monthly staking rewards from the 40-day period. Additionally, users will receive some XLM tokens from the one-time distribution of 9.5 million Stellar Lumens tokens
UPDATED: JUL 18 AT 5:21 AM PDT$0.0912.59%
Stellar, currently ranked #10 by market cap, is up 12.59% over the past 24 hours. XLM has a market cap of $1.71B with a 24 hour volume of $397.26M.
Chart by CryptoCompare
Stellar is up 12.59% over the past 24 hours.