Stellar Development Foundation Transfers 50 Million XLM Tokens to Kraken; Dump Incoming?
The Stellar community has expressed dissatisfaction via twitter after the crypto project transferred 50 million XLM tokens to Kraken coin exchange from its Development Foundation. Stakeholders are speculating that investors will follow suit and dump their tokens leading to a plunge in the XLM value.
According to a tweet by the Whale Alert, over $3.6 million of XLM tokens had been transferred to Kraken. This sparked a reaction from Stellar’s twitter supporters who mostly criticized the move accusing the project’s leadership of abandoning its blockchain community. The Whale’s tweet read;
— Whale Alert (@whale_alert) November 17, 2019
Some of the XLM HODLers are now comparing the dump situation with that of Ripple in the case of XRP tokens. Crypto Analysts have identified such dumps as a hindrance for price spikes hence the stagnant XRP performance over the course of 2019.
Ripple foundation has in the past given XRP tokens as charity as well as to other entities based on particular working relationships. Consequently, XRP cryptocurrency investors have faulted this strategy as one of the price resistance factors.
The Stellar Token Burn
The XLM foundation burned 55 billion XLM tokens at the beginning of November. This stimulated its coin price which surged by over 30% following the event announced by the firm’s CEO, Denelle Dixon. Prior to this the project had 105 billion Lumens; they planned on using these for operations, giveaways and partnerships.
However, the Stellar Development Foundation projected that they could achieve their targets with fewer tokens, today this mining pool is barely at 50 billion tokens.
Stellar noted that they will put more emphasis on fundamental development and adoption strategies. At the moment, the XLM coin is at position 10 in market cap trading at $0.069, this is a 4% drop within the past 24 hours according to coinmarketcap.