Stellar Lumens (XLM) has been working hard to rival other cryptos when it comes to providing fast and cheap cross-border money transfers. However, its value keeps dropping, and it might go down even more due to damage in Upbit’s reputation.
Stellar is in trouble despite its best efforts
A lot of cryptos have been trying for a long time now to provide their users with a new way of sending payments across the border, and Stellar is no exception. Its efforts to enable cheap transactions that would also be done in a matter of seconds are advancing. All in all, XLM is pushing hard to become a very attractive crypto.
However, despite these efforts, its investors are still alarmed, and they might decide to give up on this crypto. The reason for this is rather alarming news from South Korea. The country has major concerns regarding one of their largest exchanges called Upbit.
According to some allegations, Upbit might be involved in a fraud regarding cryptos. This has not yet been officially confirmed, but many believe that it is not that surprising, considering that their top volume generator is XLM/KRW.
The exchange has a market cap of around $2.1 billion, but when it comes to Stellar, its trading volume only makes up for around 0.60% on the platform. This means that there are many others who will lose a lot more than Stellar if allegations against Upbit turn out to be true. Still, this does not mean that Stellar won’t be hit hard, and the biggest question is whether or not it can afford to experience such a blow.
Other than Stellar, TRON (TRX) and EOS (EOS) will probably be the currencies which will suffer the most from Upbit’s alleged actions.
The price of XLM continues to drop
According to the CoinMarketCap’s trading volume, XLM currently holds the 35th place. Its total contribution to the market includes only 0.27%, which is extremely low. Its situation regarding the price is worse by the day, and only within the last 24 hours, the crypto lost 9% of its value. The last week has seen a drop of 25.54%, which puts its current value to around $0.33.
With a situation like that, it is not very surprising that the investors are having second thoughts regarding the crypto. They might get under even more pressure if the situation for this crypto doesn’t turn for the better, and soon.
Even a small increase to $0.35 would be enough for them to shake off some of the pressure and regain their trust in the crypto, but whether or not this will happen is something that we should wait and see. For now, there is hope that the weekend will help the situation improve. Whether this hope will be justified or not is anyone’s guess.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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