Blockchain Investor Analysis

Stellar logo

Stellar

XLM
Current Price $0.08 (-0.46%)
Stellar is a global payments network founded by Jed McCaleb, who also co-founded Ripple in 2014. It is a decentralized, open-source protocol that gives users the ability to make transfers between any pair of currencies, including fiats.

Our Rating:

Market

Problem that it solves

Stellar helps make transactions faster across international borders. It provides necessary connections between people, banks and payment systems.

Customers

Stellar is attractive to a few different categories of users. In addition to financial institutions, Stellar is used by individuals, and businesses of all sizes.

Value creation

Using the Stellar platform makes difficult or expensive transactions both feasible and quick. The XLM token has value in that it can be used on the network and traded for other currencies.

Market structure

The market is broad and therefore has simultaneously has unlimited growth potential and a nebulous outline.

Market size

The market potential is enormous.

Regulatory risks

It has a slightly higher regulatory risk due to its inability to completely eliminate the possibility of bad actors influencing the network. Regulation may invade Stellar due to the ability for malicious users to abuse the system if they are able to unite successfully.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Stellar has its own blockchain that is based on well-tested blockchain principles.

Lead time advantage

It is similar to Ripple but more focused on individuals and SMEs. Also, it has a decent jump on similar ideas.

Contacts and networks

Thanks to its founder, Jed McCaleb, who also helped found Ripple, Stellar is well-positioned when it comes to accessing key players.

Average Competitive Advantage Score

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Management Team

Entrepreneurial Team

Yes. Jed McCaleb helped start Ripple and Stellar has been a leading blockchain project for over half a decade.

Industry/technical experience

The team has far more than the requisite '10,000 hours.'

Integrity

In general, the team comes across as honest. However, Stellar's airdrops and token burns shows that the team could be more transparent about its token supply management.

Average Management Team Score

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Token Mechanics

Token required

A token system is better than a pay-to-play principle, so, yes, it's needed.

Value added

The token is 'one of those' Ripple-esque tokens. However, it has value in the network to which it gives you access.

Decentralized

Stellar is relatively mesh-ish. But it has partners and founders who benefit and can help make decisions due to by virtue of their slice of the pie.

Token supply

100 billion tokens were issued, and there's a set inflation rate of 1% a year.

Public exchange

XLM can be exchanged on many platforms.

MVP

Stellar has been up and running for several years.

Average Token Mechanics Score

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User Adoption

Technical difficulty

The Stellar Network is more complex and difficult to understand than Bitcoin, for example. It's core mission of providing frictionless global payments, however, is a simple to understand.

Halo Effect

Stellar's connection to Ripple help give it legs—even though they are in competition.

Buzz

There is not much chatter about Stellar on social media unless a major market-moving event occurs.

Average User Adoption Score

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Overall Score

Weighted Average of the five section scores above

Blockchain Investor Analysis

Stellar is an exciting solution for cross-border transactions. It has already been adopted by important names like Deloitte and IBM. Assuming regulators keep their hands off and its developers continue their excellent work, Stellar may be a shining star for years to come.

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