A few hours ago, the Steller Development Foundation burned a full flock of XLM. Ripple is also playing with the supply of crypto tokens in a possible move to increase token prices recently. Stellar Lumines increased by 25% in the ad and the XRP also received a boost, but are they connected?
Steller Pumps On Crypto Token Burn
Just a few hours earlier, it was revealed that the Steller Development Foundation burned 55 billion XLM of its total supply.
The founder of SatoshiPay announced that at the time of the announcement at current prices is equal to 3,500 million euros.
As expected, XLM prices have increased 25% to $0.085 (900 sats) from an intraday of $0.068 (740 satoshis ). The volumes for South Korean exchanges traded increased from $300k to around $500k.
The announcement was made at Steller's inaugural conference in Mexico City, Meridian. Industry observers have already pointed out that circulating supplies remain unchanged, so this may be another attempt to increase prices.
The current "circulating" supply has not diminished, to my knowledge, so I do not rush to buy (although it would be a difficult pump). There are still 50 billion tokens, people consider it as a rare asset
The price pump is likely to be discarded today because the total supply does not reflect what is in the market.
The steps and numbers were broken in the official SDF statement that was added;
"Star mining is not done, so the public now has lumens. Because we have worked hard to obtain them for the past four years. For the other two assignments, over time and after much consideration, we feel that they are too large. SDFs can be thin and do the work that was designed to use less lumens. "
In total, there are now 50 billion XLM. The SDF still manages less than 30 billion people, while the remaining 20 billion are circulating cryptocurrencies. The SDF has claimed that it does not belong to these tokens but to the older brother Ripple, clearly has full control over them and has a majority of the total lumens supply.
The Ripple Effect?
The timing of burning coins is also questionable as the Ripple Swell event is about to begin this weekend. Usually, there are big ads from competing platforms and the XRP price generally also gets a big boost. It has been widely reported that Ripple has been downloading tokens in the market in recent months, which annoyed investors a lot since they have to request a hard fork.
By the way, XRM started moving XLM at the same time, following the announcement a few hours earlier. XRP prices rose 4.5% on the day to $ 0.305.
An obvious way to regain interest in your encryption project is to toast a lot of tokens!
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