Reports of Stellar acquiring Chain are floating around this week. On June 20th, Fortune reported that Stellar, the creator of the virtual currency XLM, is in talks to purchase the California-based blockchain startup. But is it really going to happen?
Stellar Acquiring Chain – Real or Fake?
Rumors in the crypto space take different paths. When the fake Coinbase listing rumors spread about XRP, the Ripple price soared. But then it dropped when people realized it wasn’t true.
As for the rumor of Stellar acquiring Chain, the cryptocurrency has neither soared nor plunged. However, that’s not to say that the latter won’t happen. More on that later, though.
The news is still on the DL. Fortune got its information from anonymous sources close to the matter, and while that isn’t an official confirmation, Fortune did provide some real figures to go along with the not yet confirmed acquisition.
Stellar Acquiring Chain – The Details
According to Fortune, Stellar (XLM) will be acquiring the San Franciso-based company for $500M. This amount will not be paid in equity or cash – it will be in XLM.
Citing sources close to the matter, Fortune then reported that backers of Chain will be given payment in XLM. They will be able to either hold or sell right after the transaction.
Aside from numbers, Fortune had something to say about the reason behind Stellar acquiring Chain. Reportedly, Chain has a fantastic team of blockchain developers, and even though there is a high demand in this field, there is a short supply.
So, instead of stumbling upon a talented blockchain developer, Stellar is openly seeking them out.
XLM Daily Chart: June 21, 2018
Currently, Stellar (XLM) is selling for $0.22. This puts the coin down 2.95% in the past twenty-four hours.
Earlier in the day, XLM had over $40M in daily trading volume. This was why I said it was possible for the news of Stellar acquiring Chain to cause the token to plunge.
If Chain investors flood the market so that they can sell a percentage of their obtained XLM tokens, downward pressure could be put on the exchange price of XLM. Maybe not in the long-term, but definitely in the short-term.
With that being said, at press time, the daily trading volume is currently below $40M. Right now, XLM has a trading volume of $37.42M.
What do you think of the potential acquisition? Do you think it will benefit all involved? Let us know in the comments below.
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