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Asset Allocation in a Hornet’s Nest

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The cryptocurrency markets have provided one of the only ways for people like you and I around the world to achieve financial freedom. Through ICOs, strategic investing, or dumb luck; for better or for worse there are opportunities every single day for you to drastically increase your net worth with a minimum upfront investment.

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Now that we’ve gotten that out of the way, let’s talk about investing like adults in a market that was designed for children.

First, let’s discuss the industry. The blockchain industry has designed various superhighways on the internet that allow rapid transfer of almost any form of data. Currently, the industry is fixated on money transfer and settlement, with scaled data/content sharing slowly becoming a reality. The cars that travel on these super highways are cryptocurrencies. Each car is designed to travel the highway in a certain way that will benefit it’s user. Anonymity, speed, transparency; no matter what the driver is trying to do, there is a strong possibility there is a car designed for that person. For example, there is (somehow) a successful coin that focuses on dentist transaction processing in a minimal geography.

Next, the coins. There are currently thousands of investable coins across various marketplaces worldwide. Most of the coins that you see today, including those in the top 10 in market cap, are projects. Not businesses. They are in the infancy of their business, and have crowdfunded on a scale and format never seen before. This is where things get tricky. No matter who you talk to, no one will be able to tell if a non-functioning business will ever function. Each investment in a project is completely speculative based on analyzing their road map, white paper, and team background. The price of each coin fluctuates in a way that is incomprehensible. A very common story is a coin could just launch an amazing partnership with a business to use their blockchain road, and still be down 20-30% on the day. The key word here is: irrational.

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So, finally, how to be rational in an irrational market. The answer to this question is why you watch YouTube videos like smoking crack, download telegram where for every price target you get 15 spam ads, and read wonderful pieces like this one. I will not disappoint, I will provide my opinion of how to navigate this market the same way all year. 2 rules. 1. Invest in businesses, not projects 2. Circulating Supply is more important than Twitter.

1. Invest in Businesses, not Projects

I will get heat for this one. The majority of money lost in cryptocurrency is money bet on projects that do not have a product or customers. The ICO market is a complete bloodbath. An example is Porn Coin – During the ICO, the CEO vanished with all of the encrypted currency he just received – whoduhthunkit! 2018 is the perfect storm year. You don’t need to be wasting time with porn coins when there are coins that already have working businesses that are trading on the same exchange.

What are the businesses to look for? Logical ones! If it doesn’t make sense to you, then why would it make sense to the hedge fund or institution that’s going to be looking at it 2 months from now. The only investments that I have are the ones that are A. Making money B. Targets for indexing or investment by American financial companies and institutions. Those two filters alone will get you down to a maximum of 10 coins. Of those 10 coins, probably 3 will be around in 3-5 years. Never, ever, invest in one or two things. If you just want one investment, buy Ethereum. Creating an index of different functioning businesses will limit the losses you can incur in a single day. The risk over weeks, months, and years cannot be mitigated. Cryptocurrency is new.

2. Circulating Supply is more important than Twitter

The cryptocurrency market is unregulated. That is probably the first thing I tell people when they ask me about blockchain. Anything can happen here, and everything does happen. You name the scam, it’s probably happened thousands, if not millions of times. Twitter, Telegram, and YouTube have caused more losses than gains. If you listened to the first rule, you know you have very few companies to invest in. Circulating Supply is what I look at after the business. I want the price to be VERY sensitive to new entrants, in which I am incurring the risk of the price being VERY sensitive when someone exits. If I am investing in a functioning business with very little quantity, I now have a coin that is used in a functioning blockchain that not many people have. Think of all the coins you know about, and the people who you know who have invested them. Are they using them? No! of course not! These are like “GoFundMe” tokens that have purely intrinsic value. So people HOLD them. If something has 4,000,000 supply, and there are early adopters holding large percentages, then the market is now limited in supply. My bet is that prices will have to go up in order to entice people like me to take their coins out of cold storage. This is a bet. Not a fact.

Right now, that strategy has yielded me a lot. In 3/6 months, I believe that strategy will reward me much more. Don’t invest in new technology. Use your computer skills to preemptively invest in things you know deep pockets will invest in. With a low supply, you only need a couple more big boys to come in for you to reap the benefits. My heart starts pumping with a supply of anything larger than 150mm. Now, you’re saying, “But what about XYZ coin! It holds the door open for you and gives you chocolate!” I am 100% sure the coins I have invested in are not the best tech in the market. In fact, I’m probably sure of it. But I am not crowdfunding a coin that gives me no equity in their business simply for the fact it can “change the world”. Don’t chase technology. Chase money.

Conclusion

Don’t make cryptocurrency complicated. This is a highly speculative investment category that is just taking shape. Using the two rules above, you can create an index of coins that will give you the highest probability of a return. One thing pundits will say is that the market cap in cryptocurrency is going to rise. That has an inherently higher possibility than any cryptocurrency price prediction. Creating an index of already profit reaping, low supply currencies will mitigate your risk, while amplifying your returns.

This is my strategy, and I encourage you to look into it. None of what I say is financial advice. My purpose of this article is to stimulate thought, and thought only.

Featured image courtesy of Shutterstock.

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4 Comments

4 Comments

  1. andrewmayne1

    January 13, 2018 at 10:14 am

    Thanks for the article. Two questions –
    1) When you say business rather than project, are you saying that it has to be able to make money beyond the premine? Ie be sustainable? Or that it has a working product which allows use of the token

    2) How do you determine the circulating supply? Presumably that’s the amount of the crypto that’s on the market ie not premined to fund the the project. Bitcoin has a relatively low supply of coins, but I would I be right in assuming that you’re talking about low market cap coins?

    Thanks

    • Raiden

      January 14, 2018 at 4:49 pm

      Hi Andrew

      1) I want businesses with customers. The ICOs are crowdfunding, and somehow we have decided that the crowdfunding tokens we bought have value and should be traded. I think what you said was correct “Working product which allows use of the token” I believe it is use OF and use BEYOND the token (DAPPS/Smart Contracts are just the beginning). This all goes back to the intended target market of the token. who do they want to adopt their blockchain/currency and why would the target market do it? Are they already doing it? If they aren’t already making money from volume/customers, there are some that are. I choose to go with the safer bets in general.

      2) coinmarketcap.com total circulating supply. You are completely correct Andrew, there is absolutely no way to determine what is actually on the market at a given time. But, it is extreme peace of mind that when the total supply can reach only reach in the 10s or low hundreds of millions. some coins incentivize by deleting one coin per transaction, etc. This is a strategy some employ, obviously not for everyone.

      Not recommending XMR or any other currency. Talk soon! -R.

  2. efipm

    January 14, 2018 at 8:20 am

    Great article. It is the first one here on Hacked that “teaches fishing rather than offering a free meal”!
    What is your social media presence RAIDEN? Love to follow you everywhere.

    Give us an example of how we could guessestimate the Circulating supply.
    Maybe using an example like CIVIC coin and or IOTA (App layer and protocol layer).

    Thanks alot

  3. Raiden

    January 14, 2018 at 4:55 pm

    Gonna start up a twitter soon, will keep you posted.

    My strategy is bare bones simple. I am not trying to figure out how much is there at what time. I just see how much can be made in total. I think CVC is 1,000,000,000 if I am not mistaken. I think current circulation is 343,000,000ish. Each coin/token is different. This one has split it into thirds, each piece can be used (in their bi-laws) for a distinct purpose towards their business.

    hope this helps talk soon -R.

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NEO

The Lamen’s Story behind QTUM

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Market Update: Th crypto market cap has climbed back above $500 billion. Well done folks! I am liking the slower gains, as I think this could be new entrants. We have a ton of people way behind in cost basis on every coin, so I am just not convinced that those people sold at the bottom and then are re-entering. We waited this out, and the chatter throughout the media is getting to be too much for the later adopters to bare without getting involved. I have begun my history lesson to figure out where the true technical evolution is occurring in blockchain, and what will have the application to render an immediate investment. QTUM combines UTXO ledgers and smart contracts in one platform, and I need to understand their business reasoning behind why that is important. That starts with bitcoin.

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The Timeline in Blockchain

The beginning was bitcoin. This framework was created by the infamous Satoshi Nakamoto, who wanted to encrypt the way that money could be transacted. The transaction model he chose for his ledger based blockchain was inputs and outputs. Each bitcoin is an output from an input, and outputs are used to send money, not accounts.

UTXO “Unspent Transaction Outputs” is what your bitcoin account consists of. Don’t expect Windows 95 to be the most sophisticated! So, when someone sends you bitcoin, it goes “UTXO”. It is added up with all of the other times you received but didn’t send…and there is your bitcoin balance. Here’s where it gets tricky. Say you have UTXO balances of BTC 5, 3, 2. That means someone sent those coins to you in 3 different transactions. Now you want to send 1 BTC. UTXO will choose the most prudent one, 2 in this case, and then create an input for 2. But I wanted to only send 1! Don’t worry, there will be two outputs, 1 BTC for your recipient, and 1 BTC back to UTXO. You cannot take portion of a UTXO, it will all go into the input, and out the output.

Ethereum was the evolution. Instead of this UTXO model where there is no real single account- just lists of inputs and outputs, there was a place where people could have an account that is much similar to a bank account. You send, you receive, and everything is recorded. There is no choosing which UTXO fits which transaction, each transaction can be unique, and only the amount needed will be input. Debits and Credits, just like a bank account.

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Ethereum smart contracts are pillars of the account model. These contracts have unlimited capability to set rules (e.g., 100 voters, duration: six hours, choices: Candidate A, Candidate B, etc.), quantify inputs, determine precise results safely and securely, and dispense the ether of course! This new function in the blockchain required code of higher quality (I am not going to go GitHub level here) for the smart contract to work with, rather than a smart contract having to deal with a bunch of random UTXO’s. The account system worked for this just fine…or so we thought.

The DAO, founded by a consortium of Ethereum founders and followers, was a fund (a smart contract “account”) created in 2016 to be the first organization to promote the migration of business and commerce into the blockchain, and automate things for absolute and unbiased results. If you wanted to make a project that would benefit commerce on the blockchain, the smart contract would determine a consensus-based allotment.

Ironically, the DAO smart contract “account” was spoofed into funding a “Child DAO”, an exact replica of the DAO that convinced the smart contract to fund it multiple times over. Ethereum went from $20 to $13, as $70m was drained into the Child DAO. The Child DAO issue eventually led to an Ethereum hard fork, the result of voting to not let the attacker (who said he had legal right to his property through a lawyer) have his prize for his creation, and emptying the piggy bank to all those who lost ETH and laid claim to it.

QTUM

I want you all to know that all of that information was needed for me to explain QTUM.

This all started when I wanted to do some research for my own benefit. QTUM’s “About Us” was claiming their new benefits were that they designed a UTXO blockchain that has accounts with a smart contract account layer. So my thought was, why does QTUM want a UTXO blockchain? They believe UTXO has much more in scalability terms for business functions by having limiting information and “Proof of Consensus” model, and they wanted to build something that could act as the ether for those who were hard at work mining in the bitcoin UTXO community.

Eighty percent of all the QTUM tokens will be distributed for an array of purposes, but a major one is to bring the real world application into blockchain. Much like the older brother before it, QTUM is providing a DAO-like Account that can incentivize technical projects that can stay on their UTXO chain, but come out of the shadows to work within the community. Those who are used to coding in the Bitcoin blockchain will be happy to see that they now have Ethereum’s paint brushes in their own technical backyard. QTUM also can migrate Ethereum’s contracts into this new smart contract environment.

The platform has partnered with two companies in China (cybersecurity & media) to date, both of which are working along the lines of bringing business into the blockchain through smart contracts. China has been very cold on blockchain as of late. This may be a good project, but they are fighting against my favored incumbent NEO, and there is nothing I would say that truly separates them as unique for large migration. There will only be a handful of platforms. One for each country depending on laws/regulations. NEO is my choice.

Conclusion

I am a fan of the concept of taking a big community of people and trying to give them incentives through smart contracts to work harder for business purposes. I am not sure how big the bitcoin UTXO community is. Like you have seen, this is very deep technical information and the differences between UTXO and the Account method are murky at best for a lamen.

I have a small holding of QTUM, and it will remain small. UTXO seems like a bridge to bitcoin’s old tech that they are reviving. Ethereum already has had the first wave of business migration, and it seems that Solidity, the coding language of Ethereum smart contracts, is on every developers to-do list.

Overall, if QTUM makes a ton of money, non-coders won’t know why. It is a platform for people in the bitcoin chain to use for business purposes, but Bitcoin was made by someone who vanished and there is no one leading the initiatives within. Does bitcoin have an initiative? This may be like a Coder’s Coin. They like it for the certain coding characteristic, but overall the difference is minimal other than the chains are different. I think paradigm platform chains will exist, and the current ones are Ethereum and NEO.

A true technical smart contract artist or developer may disagree with me, but I see no extremely valuable difference between Ethereum and QTUM. QTUM certainly isn’t a coin for business people like myself. I will stick to what I know, and that is Ethereum-based platforms and compliance.

 

None of this is a recommendation to buy or sell cryptocurrencies. I own a small holding, and as mentioned, it will remain small. Best of luck to you on the exchanges. If you would like to remain updated on my thoughts, please do follow me @raijincrypto on Twitter.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Op-Ed

Decoding Ripple

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Market Update: As of this writing, bitcoin is up to almost $10,800 with ETH at $962. Great news. What we saw this week was slow, consistent gains. It looks like most coins are gaining 3-10% daily, with not too much parabolic activity that would make me more nervous. We had a ton of tailwinds, too many to count. A White House Official said cryptocurrency regulation would not be in the immediate future, Wyoming & Colorado are trying to legislate crypto-friendly offerings/enforcements, and of course “Coinbase Merchant” was launched; which is a payment platform for businesses to begin accepting cryptocurrency payments. I couldn’t think of a better way to end the Chinese New Year.

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Big players are announcing partnerships, and of course, Ripple leads the pack. A coin is only as good as their buyers, so I want to make sure that all of my readers know who those buyers could potentially be, and what they can buy. I want provide a background on Ripple & their 3 Products (Xrapid, Xcurrent, Xvia). Ripple is one of my largest holdings, so full disclosure here.

Ripple’s Market

Ripple’s products are all designed to work with businesses on sending and receiving payments instantly and securely. Their main competitor is the incumbent, the SWIFT system.

SWIFT facilitates money wire transfers, with many checks and balances along the way. Overall, it takes about 3-5 days to clear a transaction with the SWIFT system. That means if you want to send money from USA to Germany, you can either wait a long time or you can pay a high fee to get it there quicker (via Remittance company like Western Union). During your wait time, there is also security risk. Just recently, we saw hackers take SWIFT via a Russian Bank for $6M. When you don’t encrypt your transfers & information, there is always a possibility that someone is smart enough to hack in.

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The SWIFT system, regardless of Ripple’s success, will phase out of existence. Their way of transferring money in the 21st century is outdated, and people should expect more out of their financial institutions than their money going through the equivalent of snail mail to get to it’s recipient.

Blockchain is a simple solution for payment processing, which is why you are getting so many people trying to enter the space altogether. There are trillions of dollars being moved back and forth each year around the world, and there are certain niches that will require different blockchain characteristics to serve them. One of them is banks & remittance companies. They need Anti-Money Laundering/Know Your Customer procedures built in, just like the SWIFT system. Ripple (and Lumens!) designed their chains/coins specifically for this purpose.

XCurrent

The product I hate to love. This is Ripple’s solution for bank cross-border transactions. Their system not only uses blockchain, but also validates the parties in the transaction and the transaction itself BEFORE it even takes place, so there is no wait time in between.

One bank wants to send money to another bank, with a “correspondent bank” (wire facilitator) in the middle. There is a message sent from the sending bank that will outline their intended transaction. Ripple will decode the message, and put it into ledger format for all 3 banks to read, compliance screen, and validate instantly (Inter-ledger Protocol). Sender, receiver, account information, and transaction details are all used to determine the fee that each bank will tack on for their services to determine total cost to sender for approval.

The next step is cryptographic hold of funds. This puts a hold on the transaction at all 3 banks, so that they can generate a cryptographic signature that will serve as evidence that funds are available and have been pledged for dispensing. In other words, the banks send each other “I’m ready” signals. Once all parties have provided their cryptographic signatures, Ripple automatically releases the transaction, which is sent and settled within seconds.

Communication and uniformity are the solutions that Ripple brings with this system. No longer should banks have inboxes and outboxes. Blockchain ledgers automatically validate participants in the transaction, and the blockchain itself can serve as the highway to transfer the funds instantly. Overall, this is expected to yield a 30% decrease in transaction costs for customers, while also providing instant settlement. No brainer.

Raiden, why do you love to hate it? This is the main side chain product culprit. You don’t need to use XRP in these scenarios, and banks aren’t. Sure, there is some trial periods, but I haven’t heard a major bank using XCurrent with XRP. This is when I wish I was a shareholder, not a coin holder. The best we can hope for is that XRP will become a base currency for banks once society has warmed up to the thought of virtual shells that encapsulate and mimic the value of fiat currency. Until then, I am not happy when I hear the word XCurrent.

XRapid

Our future hero. This is XCurrent, but with XRP being added in. Cross-Border/Currency payments are completely inefficient. In order for me to send dollars and someone to receive Rupees, Currency (USD) must be sent to a correspondent bank, and exchanged in a “Nostro-Account”, which serves as a liquidity pool of the foreign currency (INR). Then it has to be sent to the receiving bank in the foreign currency, going through the wire system. Long, expensive, and complicated. It is so troublesome, that most banks and remittance companies need to set minimums on transactions because it is so economically inefficient for smaller users.

Nostro-Accounts, what Ripple CEO Brad Garlinghouse calls “Dormant Cash” are just pools of sitting money that have to remain there in order to convert all of these cross-currency transaction requests. XRP can serve as the unified currency for all banks to transact with, and exchange into their intended currency. Ripple takes a multi-step/multi-party process, and eliminates almost of all it.

The U.S. dollar can eventually take the form of XRP, be sent anywhere in the world, and XRP will then take form of the intended foreign currency, and settle itself within the intended bank account. As coin holders, this is what everyone should be dreaming of prior to the Beta version launch in the Spring of 2018.

During my research, Ripple’s 2016 White Paper was the only source I could find to properly explain this system, and even my explanation may be lacking. This system is expected to free up massive amounts of Emerging Market liquidity through the lessening use of the “nostro-account” system, while also cutting transaction costs by up to 60%. I am trying to get my hands on more XRapid material, but this is very very new. I am going to keep you all posted on developments, as I have set up an RSS feed to give me anything related to XRapid as it comes out in the future.

Xvia

This system for is a platform for point of sale payments. There is not one piece of information on XVia. It is actually kind of scary how little information is available on any of these products. Here is my most educated guess based on the limited information. This is Ripple’s version of Coinbase Merchant. It is software that can be imbedded in E-Commerce sites that people can use XRP to pay for goods and services. Based on the level of information, XVia is not going to be used in the near future. If it is, then their customers must have more information on it than the public does.

Conclusion

This research was tougher than I expected. Ripple has provided good information on XCurrent, but the others are severely lacking. There also isn’t much interest in the Youtube community, with rocket ship memes being more important than content. As a coin investor, I am disappointed. Their main product right now is private labeling chains, which does not benefit coin holders. I want more information on XRapid and Xvia. You can go look at my Lumens article. There is enough information from Jed, IBM, and followers to fill a textbook. If Ripple wants to have products listed on their site, there better be some information for me to look at. We may not be owners, but we are investors. I think it’s time for them to start treating us that way.

 

None of what I am saying is an offering to buy or sell coins. Full disclosure, this author owns XRP. You certainly wouldn’t think it based on this article! I wish you the best of luck on the exchange. Please do follow me @raijincrypto on Twitter. I try to send out thoughts throughout the week.

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Op-Ed

Blockzero Jed McCaleb Interview: My Outlook on XLM

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In terms of price trends, we recently saw a bit of a dip, with Ethereum and bitcoin losing about 10% no reason. I am staying away from this market until it starts to act according to good news and bad news. All of this bouncing around for no reason just smells like market manipulation and/or stupidity. Two things I don’t trade into.

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As I have looked through the content YouTube “stars” and some of the more well-known cryptocurrency enthusiasts are putting out, I am noticing one shocking thing. They come up with new coins daily to invest in. They just poof one out of thin air, they say how great the idea (not the business) is, and that it could change stuff. Wow. Well, I pride my reputation on being a broken record. I only like 4-5 coins, and I only talk about those coins. I don’t invest in anything else, nor do I want to talk about anything else. Stellar Lumens is one of those coins, and a great interview just came out with CEO Jed McCaleb. Although I have followed what Jed has said throughout Stellar’s business cycle since 2014, hearing him talk about the market right now (as of Feb. 8) was something I sorely needed as an investor when XLM is trading at a mere $0.38.

Most of these coin projects have founders who shouldn’t be anywhere near a microphone, as their explanations of their businesses is actually detrimental to marketing, not helpful. Digging into deep technical jargon on a public forum when you are supposed to be marketing your coin is not helping anyone. There are so few people who understand blockchain that companies are paying high s9x figure salaries for amateurs. Marketing should be an explanation on who’s buying, why, and how much. Jed did exactly that in his interview. He talks faster than a New York City stock broker on speed, but wants to provide only information that will give investors better insight into the XLM business; not the deep tech of the coin. I will touch on some of the key points that I loved: update on corporate relationships, innovations for public use, and ICO platform.

Corporate Relationships

CEOs are not often people who talk candidly. They are the head salespeople of the firm, and everything has to be perfect at the company. Jed is taking a humble blockchain approach. He wants to make sure that the record is straight about what partners are doing at Stellar, and how it will help/affect XLM specifically. Case in point: he said explicitly that bank relationships are far off for Stellar, and the market as a whole. He admitted the banks he works with are very early on in the sales cycle, and that 1,000+ year incumbents aren’t too used to working with new entrants. The trial runs and beta versions are all common practices in every industry. They don’t mean adoption. This was a surprise to me. I was under the assumption that these banks had a fire lit under them to catch up to blockchain. It seems they aren’t in a hurry, or just making it seem that way.

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This is where it gets good. Jed has since re-shifted focus to companies that he knows will be immediate adopters, just because of how easily it can fit into their structure. Remittance companies (Western Union, Moneygram, etc.) are the low hanging fruit in his mind. These are high volume transfers of cash, with high fees to come with it. The biggest demographic of remittances are obviously foreign workers, who also happen to be the last people who can afford to spend 5-10% of their capital on transfer fees. With an industry size of $500 billion in 2016, remittances can feed quite a few companies that have friendly corporate technology.

XLM is a shell. It can take form of fiat currency, transfer anywhere in the world, and settle in a bank account in any currency. There are 300 coins that claim they can be the new PayPal, and most them are still spouting off about decentralization. This is a company that wants control mechanisms so it can give tangible control to their corporate customers.

The way he spoke about his corporate partnerships is translucent. He doesn’t tweet (says he only watches, not talks) out random fodder that happens each day. He wants to be the business person that people can depend on. People will go back and read through the information that all of these coins put out during late 2017/early 2018. I think his spot in the annals of the crypto boom will prove to be very noble. I am happy with remittances, and I am happy he was open that banks just aren’t there yet. I haven’t heard anyone else admit it, have you?

Public Use

I was unaware of the infrastructural scope that Stellar has built since 2014. Jed created a conglomerate, not a business. He has a platform for the public to launch DAPPs/smart contracts, token offerings, and an exchange soon capable of atomic swaps (no base currency; you can trade LTC for KMD). His main goal is to create an exchange capable of housing the U.S. cryptocurrency market, while also having ICOs launching on it in tandem. The recent $30 million ICO of Mobius (I don’t invest in any ICOs) had all the looks and smells of a compliant offering. If the exchanges play well with the government, we can see some very big moves.

The next public project was partnered out. Because remittances are so large, the big companies are just necessary evils in the early adoption phase. He is working with a confidential company on creating a global Venmo-type network that can work directly with any kind of bank account. You can send USD from an American bank account, and it will deposit in yen in a Japanese bank account. All on the app in 3-5 seconds. XLM was designed specifically for this purpose, and its use cases are beginning to take up speed. XLM is the sought after technology, not private chaining. I am very excited to see what he comes up with here because this fiat currency settlement mechanism is almost monopolistic right now.

ICOs

Staying far away from ICOs right now, even Stellar’s. But that doesn’t mean that we shouldn’t find the winning race horse before the race. Stellar’s platform works with fiat currency, and it can launch ICOs. Need I say more? I have harped on this fact many times, but this is just too good not to repeat. If central banks, corporations, institutions, and high net-worth individuals feel comfortable enough with Stellar’s way of handling their native paper currencies, we could see Regulation D token securities being offered on Stellar. Big American business is waiting for the rulebook to be written, and then they will pounce. Stellar is already working with banks in the South Pacific with America’s tech darling IBM: we are seeing the heir being groomed in my opinion. All of the information listed is leading to me to a rather large conclusion.

Conclusion

My conclusion is getting fast out of XRP, and putting it all into XLM. XRapid, Xcurrent, X-me out of this XRP business. Ripple is creating blockchain systems, and has gotten the taste of private chain revenue. Their coin does not need to be used, and each company they work with has specific press releases saying they aren’t using XRP.  On the contrary, we have the head of blockchain for IBM saying they love XLM, and are actively working together to introduce it to banks. XLM, not just Stellar. That is crucial for coin holders. I am not running over to the computer to sell right now, but I will get up to my basis, and exit. I will most likely keep some for a Coinbase push, but XLM needs more of Raiden’s money. Jed McCaleb has created 3 gigantic blockchain companies (Mt. Gox, Ripple, Stellar), and smart money doesn’t bet against him. I sure won’t be.

 

This is not a recommendation to buy cryptocurrencies. I am not buying or selling anything right now, and I suggested you don’t either. If you do, be aware of the risks. I wish you the best of luck.

Disclaimer: The author has an investment stake in XRP.

Featured image courtesy of Shutterstock. 

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4.3 stars on average, based on 18 rated postsMythological God of Lightning. Cryptocurrency/Blockchain writer, evangelist, and friend. May the odds be ever in our favor.




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