Stellar (XLM) might appear less appealing on the pricing right now for those prospecting in the crypto verse but there is more to it but the price value proposition in the market. The bearish market has thrown all coins in to a state of uncertainty but Stellar still remains promising in the near future.
The Stellar community appears to be getting used to surprises with the news that a merger with a Visa-Backed blockchain entity is on its way to the ever growing Stellar family. The Stellar Development Foundation, the profit focused division of the Stellar outfit, Lightyear, has hinted the buying of Chain that is set to bring onboard additional enterprise names once the deal is sealed.
Stellar (XLM) and the Rich Chain Investor Portfolio
Though the acquisition amount has not been disclosed, Chain list of investors is good news enough for the XLM holder and investor. Chain’s partners include Citi Ventures, Nasdaq and Visa. Once the formalities are thrashed out, the goal is to gain profitability from the investment arrangement.
This is a huge boost for Stellars’ native coin XLM as Adam Ludwin, the co-founder at Chain and the CEO of the newly unveiled Interstellar outfit explains:
“All of the clients that we have now have effectively shifted from using a traditional database model to using a tokens model, issuing assets on a local environment. By partnering with Stellar you can fire an asset to another institution.”
After sealing the deal, Lightyear and Chain will be phased out and Interstellar will take care of the entire business. The firm’s headquarters will be in San Francisco and field offices in New York. To get the outfit started off, a total of 60 employees will be in charge of the operations.
How much is the Stellar-Chain Deal worth?
According to the new Interstellar CEO, the deal is worth “significantly more than $40 million” which is the amount Stellar has earmarked for Chain purchase but was quick to add that “the company has had millions in revenue and millions of dollars in the bank,” however; he could not give more details at this point but adds:
“Chain did not need to sell the company. This needed to be a great strategic move and a great return and it was both.”
The move by Ludwin to become the Interstellar CEO will see the Stellar founder and co-founder at Ripple, Jed McCaleb become the new Stellar CTO and will oversee the development arm of the ecosystem. After the announcement of the deal, McCaleb was quoted as saying:
“Chain’s team has led the market for enterprise adoption of blockchain technology. This is a critical component of building a future where money and digital assets move over open protocols.”
Why Chains Fits well in the Stellar (XLM) Matrix
By using the Stellar public network, Chain will be able to bring its partners and consumers together which is better compared to launching their own blockchain. This has been supported by Ludwin by arguing that “Chain and Stellar had equal and opposite problems,” and by collaborating, these can be easily be ironed out.
This is a positive breakthrough in the blockchain industry and more players are also forming mergers to capitalize on the ever growing opportunities in the market. As the Stellar community waits for the deal to go through, XLM coin price still remains in the red zone having shed 1.32% and 0.37% to the dollar and Bitcoin to trade at $0.189615 and 0.00003034 satoshi respectively.