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The Increase in Interest Rates Could Favor the Stellar Lumen Block Chain: Why?

BY Aborisade G.·2 MIN READ·OCTOBER 13, 2018

STELLAR (XLM): THE INCREASE IN INTEREST RATES COULD FAVOR THE STAR BLOCK CHAIN: WHY?

Two days ago, Hyperion announced the creation of a partnership with Interstellar. This partnership will allow all types of stellar assets to be traded in the Hyperion exchange. Basically, anyone can title assets in stellar and market them in this stock market. This comes a few days after another agreement with Colliers and Stellar. Colliers, a Canadian real estate company, announced that it would seek to increase liquidity in its search for Stellar. All this suggests a scenario in which the star network is slowly taking control of the asset tokenization market.

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The Incentive

More and more companies are encouraged to look for a symbolic distinction in the stellar network. The first is the financing costs. As interest rates rise around the world, financing costs will increase. This will have a great impact on companies, especially in the SME market. Stellar offers these companies a simple way to obtain financing from a global audience at a reasonable cost. The more companies realize the power of the stellar lumen blockchain, the more it will become the standard for corporate finance.

The other incentive for companies to excel is respect for the rules. Unlike the ICO, the star chips do not pose any regulatory problem. The reason is that the whole process involves the creation of tokens of existing assets. This does not resemble the ICO model, which provides more collective funding for novel ideas. Essentially, the risk of fraudulent emission of stellar chips is small compared to the problem of obtaining an ICO. Because they operate within the framework of current legislation, stark tokens are useful for obtaining profitable financing without companies expecting legal complications.

Impact on the Stellar Lumen

As more and more companies use zodiac signs, the value of the underlying stellar block chain also increases because the transaction fees in the stellar network are paid in the light of the stars. The more active there are stellar blockchain symbols, the higher the star demands for Stellar Lumen, which gives this piece a big boost for growth in the future. This growth will not necessarily come from the big companies that look for stars, but from the many small and medium companies that are taking this route to raise capital. If asset segmentation becomes the norm in the star block chain, which may be the case, the value of Stellar Lumen will increase considerably.

A quick look at the evolution of stellar prices in recent weeks suggests this potential growth in value. Since StellarX opened its doors to everyone since the launch of DSTOQ and the news from key players, the value of Stellar has been largely optimistic compared to the rest of the market. This means that the creation of assets, once it gains ground, could appear as one of the most powerful in the market. As a result, the stellar Lumen could become one of the best pieces for long-term investors. Macroeconomic factors such as the increase in interest rates could increase its long-term value.

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  • Byline - Reported by Aborisade G.
  • Coverage Desk - Primary editorial category: Altcoin News
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