Surprise Stellar (XLM) Move Sends Crypto Shockwaves, Triggers Initial 26% Burst: eToro Market Update
OUR STORY DISCOVER CRYPTOCURRENCIES NEWS AND UPDATES
Stellar (XLM) Burn Sends Crypto Shockwaves, Triggers Initial 26% Burst: eToro Market Update
“Remember remember the 5th of November.” So goes the old poem praising a foiled plot to blow up the King of England along with all of Parliament in the year 1605. The image of this rebel and his story has since become a symbol of freedom from oppression. Happy Guy Fawkes Day.
“Ring the bells that still can ring, forget your perfect offering. There is a crack in everything. That’s how the light gets in.” These powerful lyrics from Leonard Cohen were recently featured in an ECB speech from Lagarde to her predecessor Mario Draghi. Perhaps meant as a sign of hope, it was also a candid admission that we are indeed in dark times.
Though I’m a bit fed up with prophecies from 4Chan, especially after the last big one didn’t pan out, a new one has emerged on my feed today that chills me to the bone. The idea that Germany’s biggest bank might go under is something we’ve looked at seriously in the past as a possible catalyst for the next financial crisis. Though the source is not very credible, Deutsche Bank has been in the news a lot this past week.
First with the news that they’ll be passing on negative interest rates to their top customers. Then a day later with the announcement that they’ll be cutting another 6,000 jobs. Now there are credible reports that regulators are urging the bank to undertake a massive managerial restructuring operation.
It’s probably nothing but certainly bears keeping an eye on and possibly drafting a contingency plan for those who are exposed to these markets.
eToro, Senior Market Analyst
- Free Trade
- Euro Stall
- Lumens Moon
The rally was strong and hard early this morning but it seems to have stopped short as the sun passed over Europe. EU indices are still green but the enthusiasm seems to have dissipated somewhat. This could have something to do with the sour manufacturing numbers that came out yesterday.
It’s not really the kind of data that’s easily dismissed by a bit of positive trade sentiment. Still, even though slightly less today, stocks are still in the green and do seem to be aiming for all-time highs.
The Stellar Lumens Development Foundation shocked made crypto waves yesterday by announcing on stage from a Mexican summit that they have just effectively burned most of their XLM holdings and more than half of the effective supply of Lumens.
Here’s a visual breakdown of what they had in grey and what remains in bold color.
As far as the overall supply, the crypto known as Lumens has gone from about 105 billion down to less than 50 billion. The reason for the burn as stated by Stellar Org CEO Danelle Dixon was a way to reorganize and refocus and that this will help them achieve their goals.
What’s important to note is the way in which the burn was carried out as they didn’t actually affect any unnatural change to the blockchain. They simply sent some (most) of the coins that they had possession of to a locked wallet with no key.
As far as the price is concerned, a beautiful green triumphant candlestick did appear on the chart representing a move of about 26% in the first hour but since has retraced a bit.
Sill, if we do zoom out on the chart, it’s pretty clear that there’s still a long way to go from the all-time highs 93 cents per coin.
Have a wonderful day ahead!
Senior Market Analyst
Your Social Investment Network – www.eToro.com
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