What's Driving The XRP Spike? - Lumen (STR) Giveaway for BTC/XRP holders
Hey fellow Steemians!
I'm newer to the cryptocurrency community and wanted to share something I found, but also ask for advice and insight from veterans.
Stellar is giving away something like 16 billion STR to BTC/XRP (19%/1%) for those holding the cryptocurrencies - simply because Stellar.org is a non-profit organization that was inspired by Bitcoin and Ripple from the beginning. Because of this, the foundation set aside 20 billion STR to periodically give away to BTC/XRP holders. Comments from Stellar.org on the program details:
"Decentralized payment network Stellar has announced the final round of its Bitcoin-Lumen Program, where Bitcoin holders can claim its lumen token for free.
The program, which began in April 2016, features 19 percent of the total lumen supply, which developers reserved at launch exclusively for Bitcoin users.
Of the 19 bln lumens on offer, only 3 bln formed the first round of the giveaway, that was concluded in October 2016. with release details of the remaining 16 bln to be officially announced on March 28.
The value of the remaining tokens is approximately $16 mln."
The STR claim for XRP/BTC holders will end two-months after it begins:
"On June 27th, 2017, we will make available these lumens to any bitcoin holder who wants them, including those that received lumens during the first giveaway round", says the company in its circular.
Seems pretty altruistic and cool, but as you can see in the picture above there is a major increase in the STR volume and price. Cryptocurrency 'pump and dumps' seem to be occurring far too often and those that get sucked into them without knowing how to hedge from the risk can get harmed badly. Here is the original post I found about the giveaway:
So, STR has clearly seen a bump up in price the last week per the picture above. It may be a speculation, but there is a major pump going on across Bitcoin (BTC), Stellar (STR), and Ripple (XRP) right now and XRP just passed up Ethereum (ETH) in market capitalization...what's going to happen here? Looks like a potential mess waiting to happen if you're not aware of what may be some of the major driving factors.
- Has anyone participated in a giveaway like this before?
- In order to protect ourselves as cryptocurrency holders and members of the Steem community, will a 19 billion STR giveaway affect other cryptocurrencies?
- How might this affect STEEM?
Currently, there are only 9 billion STR in circulation. - Will this cause massive decreases in STR/BTC/XRP prices once the STR is distributed to BTC/XRP holders?
- Will STR prices see a decrease in price considering the inflow of coins? Or will we see an opportunistic pumper come in and manipulate?
- What will happen with other currencies that are dependent on BTC/ETH?
I enjoy writing about current and thought provoking happenings along with spreading awareness for specific events like this. Steemit is an awesome community to be a part of so far and I'm excited to connect with more Steemians!! Please share your insight as I have not seen anything about the STR giveaway in forums - let's keep our community informed!
Great write up, I have been following STR closely for a few months in anticipation for June 27th. So many factors seem to be at play pushing the market up as of late.... I wish everyone the best in their investings.
@niehaus - Thank you! I really cannot agree with you more about the various forces at play across the entire cryptosphere. I'm going to doing a small piece on a few major forces at play that I feel like I see in the market that a ton of people really are not seeing. I'll tag you in it - good luck on your trading and I will look forward to the 27th with you! Haha, should be a fun time.