Stellar - Shady or not

Circulation Supply

One thing most every crypto enthusiast will tell you about a coin is to look at the circulation supply and what a project is planning on doing with the circulation supply. In a previous post on SBD I have explained how the price of a coin is determined and how the circulation supply influences the price. See the post here

Now don't get me wrong. I have made the same move hearing about the great potential of Stellar and went out to buy some coins. Earlier I wrote a post about XRP and evaluated the history of the coin the same way I have done with SBD in the past. As I have shown with XRP, someone generated a massive amount of coins and increased the circulation supply, devaluing the coin. Not at that specific time but it is obvious what potential a lot of more coins has when dumped on the market. See that post here

Now today we have a look at Stellar

Data on the coin starts out showing that circulation supply is in the order of 1 billion coins which is increased to 5 billion coins from about the end of June 2014 to Jan-Feb of 2015. The coins circulation is then kept more or less constant for approximately 2 years to around mid-March 2017 after which the price of the coin has a bull run which is more or less in line with the BTC bull run. One particularly interesting point to take note of is the generation of Stellar coins during this bull run. Staller increased the circulation supply from about 7 billion to 18 billion coins over a period of about 6 months...

What people do not understand is that this group can manipulate the price as they see fit. If we look at the current price, this is what you will see on coinmarketcap

This is what the price would have been had they not magically included one shit ton of Stellar coins into the system. I worked on 5billion coins in circulation supply (the price might be a bit lower working with 7 billion coins but the idea stays the same)

As I have previously said in the post explaining XRP, the people in control of the coin does not even have to have a ton of money to pull off a stunt like this because it is as simple as a book entry to include new coins into the market which they have control over. This is creating wealth from nothing and devaluing the tokens that you have purchased.

That is the beauty of BTC. No one can add more coins at their discretion except for the miners mining the coin and if someone says they won't use the additional coins for some shady shit and you believe them, I guess that is your own stupidity. The graph below shows the beauty of Bitcoin (BTC's constant increase in circulation supply which is only due to the additional coins being mined).

In conclusion, I'll leave you with some Chico Crypto advice (Stellar at 4min 38sec)

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