Since most of the Crypto industry has been losing ground over the entirety of this year, how is the Stellar network defying the odds?
Certain industry insiders claim that the true reason for this is the number of ICOs that have chosen Stellar over others like Ethereum, which is a claim that bears further examination.
As of today, in what some might consider to be a strange turn of events, Stellar has even outpaced Litecoin, whose constant hold in or around the top 5 Cryptocurrencies on the market has been slipping.
At the close of July, Stellar had achieved a total monthly gain of 40%.
While ICOs that took place on the Stellar network do not seem to have been as heavily publicized as those that have continuously taken place on the Ethereum network, certain examples like Kik serve to suggest just where Stellar’s differentiator might lie.
The Kik network, which is a well-known messaging service that is somewhat on par with WhatsApp, began by running its ICO on the Ethereum Blockchain last year.
In March of this year, however, Kik announced that it would be shifting its kin token’s structure so that it could be supported on the Ethereum chain as well as the Stellar chain, at the same time.
Just two months later, they flipped the script and decided that both networks had too high fees to be viable supporters for their product, instead deciding to fork the Stellar network and create their own native chain.
To review, in this context, to fork a Blockchain is to take a snapshot of at a certain point in time, change a few of its unique features, and launch it again as an entirely new network.
At around the same time, Kik officials were quoted as comparing Ethereum to the earliest version of the internet, in terms of it being a viable platform to support ICOs. Despite this critique, the fact that they choose to break off from Stellar does not exactly speak volumes in terms of their stance on either network.
With Kik’s example in mind, it might be best to avoid allocating new resources towards Stellar at this time, at least until the dust clears as to whether their value jumping is mere speculation or something else entirely.
By: BGN Editorial Staff