Why did Stellar Lumens launch StellarX? It is a clear attempt to break free from Ripple and Bitcoin
StellarX is a new GUI for trading in crypto currencies. The use is apparently free for all participants. The question is: What is the motivation behind bringing something to the market free of charge? As it looks, Stellar wants to break free of Bitcoin and differentiate itself from its competitor Ripple.
The problems that arise with centralised exchanges are currently buzzing through the news columns. Manipulation of the Bitcoin price and attacks on the infrastructure are welcome news for FUD criers, the confidence of the community could be greater. In all this chaos, a new trading platform is now emerging that wants to clean up a bit: StellarX.
Contents
StellarX – a decentralized exchange?
One thing straight ahead: StellarX is not a decentralized exchange. So the operators stress on their homepage:
“StellarX has no order books or its own Trading system. Even though StellarX may feel like a DEX because you are trading from your own wallet and everything is solved on-chain, we are not an exchange. We are basically a – pretty good – GUI for the publicly accessible Stellar network.”
The subsidiary of the Stellar network thus refers to being merely a GUI, i.e. a graphical user interface for crypto trading. In this statement hides ultimately also the objective of the new Stellar platform. But before you can understand it, the question arises:
Is StellarX really free of charge?
The answer is an ambiguous yes, because each transaction initially costs 0.00001 XLM. This is owed to the basic features of the decentralized network. Because in the Stellar protocol it is fixed that each transaction costs a fee of 0,00001 Lumen. However, the company promises to bundle and reimburse these costs on its homepage. StellarX adds the fees for each transaction and pays them back to the users once a week.
But fees can also occur elsewhere. The tokens that can be traded via the user interface are tokens from third-party providers. If you want to withdraw them again later, for example, you still have to handle this service via third-party providers, which can result in additional fees. In principle, however, the platform is free of charge. The implicit objective of StellarX also follows this line:
Independence from Ripple and Bitcoin
At the moment the slogan when it comes to adoption is often still: Blockchain? Yes! Bitcoin? No, thank you. So it often happens that companies try to acquire the technology under the crypto currencies, but distance themselves from them. However, if StellarX prevails, this can change. Because in the long run the new platform pushes the Stellar network and can provide so in the long run for more price stability and more adoption.
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Because if StellarX establishes itself as a trading platform, the chances also increase that banks in particular deal with the use of the Stellar token. With the objective of asserting itself as a cross-border payment channel, Stellar ultimately also attacks Ripple and the bank coin XRP.
Independence from Bitcoin
The network can also become more independent of Bitcoin. Bitcoin is still the leading crypto currency – even the price movements of the Altcoins are still strongly linked to Bitcoin. That is one of the reasons for this dependence that one can exchange Altcoins only rarely directly against fiat currencies. Often the detour via Bitcoin is necessary.
With StellarX Stellar can ultimately also get free from this dependency. As StellarX allows Stellars XLM to be exchanged directly for Fiat currencies and stable coins, a step towards independence happens here as well.
Conclusion: Worth a look
Whether the project is a graphical user interface, a decentralized exchange or a trading platform for crypto currencies is ultimately secondary. The crucial thing is that StellarX takes the call for greater independence from central authorities seriously and creates an important breeding ground for what the ecosystem currently needs: the adoption of blockchain technology.
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