8/5/2023 0 Comments Stellar lumen priceThe same applies to XLM, and a number of early investors have already jumped ship accordingly. Second, the fines and penalties imposed by the SEC could be well in excess of what Ripple is able to pay to settle the dispute. First, the SEC’s track record in prosecuting these cases is near lights-out. While Ripple’s future remains uncertain, it appears investors are bearish on this development for two key reasons. Investors in Stellar Lumens have to contend with knowing XLM could be the next batter up for the SEC. Essentially, the SEC is trying to make the case that XRP is a security, and has issued XRP without complying “with the federal securities laws that require registration of offerings unless an exemption from registration applies.” Ripple has been entangled in an SEC investigation surrounding a $1.3 billion unregistered securities offering. As With all Crypto Options, Stellar Lumens Isn’t Without Risk However, another key differentiating factor is that Stellar Lumens is not in the SEC’s spotlight, yet. The same case is much more difficult to make for most of the altcoins in existence today. There’s real value being created in using these cryptocurrencies as an alternative to traditional currency. I’m actually quite bullish on both Ripple and Stellar Lumens due to the real-world applications these cryptocurrencies provide. However, a key differentiating factor between Ripple and Stellar Lumens is that the latter focuses on SMBs (small and medium businesses) and individuals, while Ripple is more heavily focused on institutional clientele. Both coins focus on making cross-border payments frictionless. Both digital coins were developed for real-world use cases. Initially, both tokens shared the same protocol, and were considered very similar to each other. The cryptocurrency was developed via the same co-founder, Jed McCaleb, behind Ripple (CCC: XRP-USD ). The back story on Stellar Lumens is an interesting one. Let’s dive into what XLM and Stellar Lumens offers investors that Bitcoin doesn’t, and why investors might be interested in this alt coin. Thinking of Stellar Lumens as another “Bitcoin light” misses the unique properties that make this altcoin intriguing. However, there are some key differences between Bitcoin and its alt coin peers. You can’t blame a guy for spreading his bets. Indeed, a diversified approach to crypto makes sense. This high level of correlation suggests to some crypto investors that the entire sector is likely to be tethered together via capital inflows or outflows over time.
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