We are close to the end of 2018, and the crypto market is still bearish. However, for the past one month or so, the market has shown signs of a consolidation. That’s an indicator that the market could be entering a consolidation phase. As with all other markets, consolidations after a bear run, are always the best to accumulate on assets with strong fundamentals. In the crypto market, one asset worth checking out as a long-term investment is stellar (XLM). Here are three reasons why Stellar could emerge as a good long-term investment.
The merger between Light year and Chain to form interstellar was a big deal, one that will have huge ramifications on the stellar network going into the future. That’s because it brought with it a number of key financial institutions to the stellar network. Some of these institutions include NASDAQ, Citigroup among others. These are major players in the finance world, and the fact that are on-board the stellar train could be a catalyst to stellar adoption going into the future.
The potential for adoption that Interstellar gave to the stellar network is unrivalled in crypto space. It is one factor that will play a huge role to the large scale adoption of stellar going into 2019 and beyond.
- The rise of security token offerings
As the ICO game dries due to scams and conflicts with existing security regulations, a new form of financing is emerging, and that’s the security token offering (STOs). Security token offerings have an edge over ICOs because they are more compliant to regulations. Unlike in an ICO where investors fund an idea, in an STO, investors buy the tokens of a business that is already in existence.
This makes an STO more akin to an IPO albeit on the blockchain. When it comes to STOs, Stellar is king. Stellar based STOs have been on the rise for quite some time now. Companies ranging from startups to large global corporations are launching stellar based STOs. This is a factor that will play a huge role in the growth of Stellar (XLM) since all transactions on the stellar network are paid in stellar (XLM). Therefore, as STOs grow in prominence, they could give a huge boost to stellar, just like ICOs did to Ethereum (ETH) in 2017.
- The IBM partnership
The partnership between Stellar and IBM is a good reason to be long-term bullish on stellar (XLM). That’s because it gives stellar an edge in the race to control the cross-border payments market, a market that is worth trillions of dollars. This partnership gives stellar an edge over other DLTs aiming for this market because, IBM already has partnerships with over 90% of the global banking industry, which makes it easier for banks to adopt an IBM product over outside DLTs. Stellar and IBM already have the blockchain world wire for instant settlements, and it has features that make it a serious competitor to SWIFT