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John Kiguru
Nov 7, 2019
by John Kiguru

Litecoin's Charlie Lee Accuses Stellar Of Manipulation After Slashing More Than 50%Of Supply

Stellar
In the last year or so, Stellar has fallen out of the radar. This has come as a result of a slow pace in project developments. It has also been coupled with its main competition Ripple having one of its best years. As a result, Stellar's XLM has not been performing well and has gone as far as dropping below the top ten ranked cryptocurrencies. Despite troubling times, Stellar could turn this around. The organization behind Stellar Lumens, Stellar Development Foundation (SDF) has announced it will destroy 55 million of the XLM tokens reducing supply by more than half.

This announcement has already seen XLM gain more than 20% on the fifth of this month. It could further see the cryptocurrencies soar much higher with demand fueling it. Unlike its competitor Ripple which sorts to flood the market with new tokens, Stellar has taken a different approach. In the past, this sort of approach has seen many cryptocurrencies soar.

The team noted this:

“We believe the number of lumens we hold now aligns better with our mission. SDF will not burn additional lumens.”

Stellar Accused Of Manipulation

The move by the organization despite immediately having a positive response in gains is not accepted by all. If they can slash the supply, they can as easily increase it. Analyst Luke Martin noted that Stellar's decentralization nature now comes into question with the recent move. If they can cut the supply now, then there is no telling if in the future they can decide to increase it. Just like with Ripple, they can increase supply and see the value drop.

Charlie Lee, founder of Litecoin also does not agree with the recent decision. He believes that this is a clever way for the SDF to increase their percentage of total coins.

“50B XLMs burned were supposed to be distributed to the community. Stellar Development Foundation only burned 5B of their own 17B XLMs. This means SDF increased their percentage of total coins from 16% (17/105) to 24% (12/50). And they did this without any community discussions.”

For now, at least, there are positive signs coming from Stellar and it looks like its token is on a bullish path. The cryptocurrency is one of the most promising coins in the market and the fact that it is still more than 80% below all-time highs makes it ideal for any investor.

There are however calls for the team behind it to revamp on development. The project has fallen behind on this front leading to it losing relevance. Additionally, there are calls for more strategic partnerships that lead to adoption. Its rival Ripple has been excellent in this front which could explain why it is outperforming Stellar. When these issues are ironed out, Stellar will be set for a new high.

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Litecoin's Charlie Lee Accuses Stellar Of Manipulation After Slashing More Than 50%Of Supply
John Kiguru
John is an exceptional writer with a liking on technology, finance and the intersection of the two. A firm believer in the transformative potential of cryptocurrencies and the blockchain. When he is not writing, he likes to listen to Nas, Eminem and The Beatles.

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