Crypto Currency News
Ethereum Classic

Stellar Foundation is committed to growth, not price, in new partnership

Lost in the news from Coinbase Earn’s Stellar give away, which will distribute over 1 billion XLM to investors in return for watching instructional videos, is the Stellar Foundation’s commitment to addressing industry adoption issues.

While investors are right to fixate on Coinbase’s giveaway, which essentially pays in over $ 100 million in XLM for a minuscule outlay, the sustained effect of the gesture could pay even bigger dividends – for both Stellar and the broader cryptocurrency industry. According to regular surveys of investors in cryptocurrency and the mainstream market, lack of education and understanding of blockchain, crypto and digital assets is a regular feature of the public.

Coinbase has done what it’s worth as an exchange promoting decentralization and the cryptocurrency industry. While the exchange stalled in the past due to suspicious market behavior and accusations of insider trading in the hours before the introduction of new coin listings, Coinbase has carved out a place for itself as a portal for cryptocurrency education. The latest addition to the XLM coin is a partnership between the US stock exchange and the Stellar Foundation, a non-profit organization that has been shown to increase the net plus of digital assets.

The cryptocurrency is at a crossroads in 2019. The lingering bear market, dubbed “crypto winter” by some, has shaken off price speculators and other investors looking for an easy path to wealth. Instead, the industry has concentrated into those who are committed to the use of the technology or are at least interested in digital assets beyond trading, so that exclusive investors are in the minority.

Aside from those looking to bounce back from last year’s heavy losses, the landscape is becoming increasingly saturated with an interest in cryptocurrencies – similar to that of some breakthrough technology the internet made available to enthusiasts in the 1990s – in search of to trade more than just exchanging coins with no net result.

Coinbase Earn and its recent partnership with the Stellar Foundation put industry growth and investor education above coin prices. Stellar’s price didn’t exactly benefit from the move – if at all, XLM suffered from the 1 billion currency flood of market investors. But the foundation behind Stellar is long-term. Instead of fretting about short-term price fluctuations that can result from airdropping and the subsequent sell-off, Stellar and Coinbase argue that the biggest win is giving investors a reason to hold onto and use XLM.

The five Coinbase modules provide a basic look at XLM while also focusing on what the cryptocurrency can and hopes to achieve. Not only does this provide a glimpse into how the Stellar Foundation works, but it also gives investors an opportunity to take a break before ditching coins for short-term trading. Instead, it is expanding the use of cryptocurrency to include casual investors who may only be familiar with Bitcoin and may not understand the full extent of what cryptocurrencies can achieve on a global scale.

While the Coinbase Earn collaboration with the Stellar Foundation is a welcome transition between the industry pioneers, it also provides a standard that other exchanges and coin groups can emulate. The adoption of cryptocurrencies is a multiplier for the entire industry, and by focusing on education, coin projects can do more than just stimulate short-term investment interests.

Comments are closed.