According to reports, Stellar (XLM), has entered negotiations to acquire Chain: a Blockchain based San Francisco startup that enables solutions for the finance sector. Chain is designed to allow for a smarter and more efficiently connected economy by creating cryptographic ledgers that support innovative financial products and services. The deal could be worth a whopping 500 million USD (a 2.2 billion equivalent of Stellar’s XLM token at the current exchange rate).
What are Chain’s Achievements So Far?
Chain is renowned for raising 43 million USD in venture capital funding from top investors including Khosla Ventures, Pantera Capital, Nasdaq, Visa, RRE Ventures, Blockchain Capital, Citi Ventures, Thrive Capital, Haystack, and BoxGroup. Should the deal go through, Chain will receive the rumored 500 million USD payment in Stellar’s XLM coin and will be free to HODL or sell them in crypto markets.
Stellar (XLM) Price Today / USD
Stellar (XLM) is known to possess over 104 Billion XLM coins with just 18.6 billion of these tokens in circulation. Stellar’s (XLM) plan to distribute the rest of its tokens inclue:
– 50 percent through the Direct Sign-up Initiative.
– 25 percent through the Partnership Initiative.
– 20 percent through the Bitcoin Program.
– The Stellar Development Foundation holds 5 percent for operational expenses.
How Stellar’s Chain Acquisition Will Affect the Price of Stellar (XLM) Tokens?
The acquisition of Chain will be made from the 5 percent operational costs and 5 percent of 104 billion XLM is 5.2 billion XLM. If the coin’s recipients decide to sell their tokens in crypto-markets the same time, the circulating supply will likely go up resulting in a decline in prices Stellar’s XLM token. This could be a massive blow to investors and other XLM HODLers.
The second option is for new XLM owners to HODL as Stellar seals more amicable partnerships like is the case with IBM and Kik. Once Stellar (XLM) goes into more partnerships, we should expect more eyes and additional to the coin which will, in turn, improve the value of the digital assets.