Popular crypto comments and market analysis indicate that the Coin Bureau has issued a prediction for the price of cryptocurrency Stellar Lumens ($XLM) in 2022.
Speaking on a recent episode on YouTube, Coin Bureau host “Guy” told followers that the price of $XLM has underperformed this year compared to other cryptocurrency groups, despite almost doubling its value.
Jay believes that selling pressure from the Stellar Development Foundation (SDF) is primarily responsible for the poor price performance. According to the show’s host, SDF, a non-profit organization dedicated to developing and growing the Stellar network, has received only $3 million since its inception, forcing the foundation to sell $XLM as a means of raising funds.
While Jay praised the SDF for its transparency – listing XLM sales in dollars on the authorization page – he noted that the foundation sold $3 billion of XLM in 2021.
As reported by The Daily Hodl, Jay stated:
What’s more, a paragraph at the end of the mandate states “As we said when we first announced this framework in November 2019, we intend to use or disperse most Lumens within 10 years, ideally before that.” In other words, the selling pressure isn’t going to stop anytime soon.
Jay highlighted lack of demand in conjunction with SDF selling pressure as a major obstacle to Stellar’s price. He claimed that institutional investors were staying away from the XLM dollar due to its similarities with XRP, which the US Securities and Exchange Commission claims is an unregistered security.
Despite drawing the bleakness of Stellar, Jay noted that the SDF could benefit from its 2018 partnership with MoneyGram, which leads to the possibility of a “very bullish picture” against XLM dollars in 2022. The Coin Bureau host predicted that XLM could retest Price early 2018. Highs, if partnership ends.
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