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Can the Upcoming USD$125 million XLM Airdrop Stimulate Active User Growth?

Nov 13, 2018

 

  • Cryptocurrency wallet provider Blockchain.com, on November 6th, 2018, announced they would facilitate an airdrop of USD$125mm worth of Stellar Lumens (XLM) beginning as early as today, November 13th, 2018.
     
  • As per Blockchain.com’s announcement, the airdrop is the largest in cryptocurrency history and the largest consumer giveaway of all-time. To receive airdropped XLM, users are simply required to open a wallet and sign up for the airdrop on the Blockchain.com.  
     
  • Blockchain.com detailed in its announcement that it chose XLM for the USD$125mm airdrop because it is “built for scalability” and has “an active and growing ecosystem”.
      
  • Blockchain.com’s airdrop announcement has driven XLM to generate month-to-date returns of 15.81%, propelling the altcoin into the top five cryptocurrencies by market capitalization.
     
  • The airdrop of roughly 500 million XLM tokens represents about 2.64% of the coin’s total token supply. An airdrop of this size should work to grow active users on the Stellar platform, a critical metric to driving the value in a decentralized application’s (DApp) underlying token.
      
  • There is a risk that users who sign up for the airdrop will simply sell their XLM tokens upon receiving them in their Blockchain.com wallet in order to realize immediate profit. Large sell-offs of airdropped XLM tokens will effectively put downward pressure on the price of XLM.
     
  • As the USD$125 million airdrop of XLM begins today, Quantamize’s AI Machine Learning 3-Day Crypto Signal for XLM is “Do Not Own” and maintains a model accuracy score of 67.5%.

Stellar Lumens (XLM) 1-Month Price Chart

Source: TradingView