Since the start of March, various companies have shown their interest in launching their projects on Stellar (XLM). This April has seen two companies join the platform with their sights set on reaping benefits from the Stellar platform. These two companies went a step further to give reasons as to why they chose Stellar over Ethereum blockchain for their initial coin offerings. Irene Energy and Kava Coin both joined the Stellar community this month.
Ethereum (ETH) is still the go to platform for most of the upcoming tokens due to the high liquidity of Ether. ICOs carried out on Ethereum have easier access to capital from investors as ETH is easily obtainable.
However, the system has had complains in the recent past as users complained of slower transaction times, lack of scalability and the long term problem of having an infinite number of tokens. Stellar (XLM), which was originally forked from Ripple (XRP), solves these problems associated with Ethereum but faces a low liquidity problem.
Stellar over Ethereum
Irene Energy, ticker symbol Tellus (TLU), is a French company aiming at providing the world with a clean and green source of renewable electricity. The company is a renewable electricity supplier in France and looks to expand its market globally using blockchain technology.
The platform will enable users to buy electricity directly from the producer and even choose the production asset they wish to get their electricity from. The direct connection between the users and producers is trustless as customers can view their transaction on the public blockchain. The ICO start date started on 12TH March and runs till 6th May 2018.
Reasons why they switched to Stellar
As much as Ethereum remains the most popular smart contract platform, with most investors preferring the platform to others, Irene Energy CEO and founder, Guillaume Marchand, seem to think that would not have been the perfect option for its niche.
The major complain about Ethereum blockchain is the high transaction fees associated with the platform. Given the nature of Tellus as a micropayment system, high fees would decrease the adoption rate of the Irene Energy blockchain. Stellar on the other hand is almost free with transactions happening almost instantly as compared to Ethereum.
Guillaume said, “So we want to do micro-payments and Stellar blockchain was designed to do micro-payments. So, a transaction on Stellar costs virtually nothing, it takes, like, 4 seconds. Whereas on Ethereum, as is, it costs a lot of money by comparison, and it can take from 3 minutes to 3 hours, to actually register the transaction.”
Stellar has had a promising Q2 so far with the price soaring past the $0.3 mark representing a 100% rise in price since April began. The hourly technical analysis shows a bullish momentum on the coin. With the SDEX coming up this quarter the coin seems to be headed towards the dollar mark in 2018. The increasing number of platforms selecting Stellar (XLM) over Ethereum has had an impact in the price as adoption increases.