Stellar Plans to Aquire Blockchain Startup Chain for $ 500 M Worth XLM
Stellar plans to acquire the ledger-as-a-service startup Chain. Rumors about this collaboration have led to a wave of accusations over the investment fund manager Ari Paul.
As reported by Fortune on 20 June, Stellar is in talks to purchase the blockchain-based financial company Chain. The website estimates that the price for this acquisition reaches $ 500 million worth of Stellar Lumens (XLM). “One source familiar with the deal said it is likely in response to the heated battle for top developers between crypto companies,” pe publication wrote.
CIO of BlockTower Capital Ari Paul claimed in June “fake news“
On 2nd June 2018, @Kazonomics posted something intriguing on his/her Twitter account:
A screenshot of the discussion between the investment fund manager Ari Paul and a BambouClub commentator has become viral on the Internet in the next days. According to it, it’s understood that Paul has engaged extensively in unauthorized XLM trades and even offered recommendations to those interested in the crypto sector. Ari Paul is CIO of BlockTower Capital, a crypto-based investment fund with $ 150 million.
US regulators prevented any tokens transaction considered securities this year. However, the changes occur slowly. “But until that matter is settled, whether XLM is a security, it seems that Ari Paul has a ‘get out of jail’ card,” BambouClub summarizes, adding that:
“Rather, it’s standard to establish a position and then share that info with friends. For example, if I thought XLM was a great buy because of the Chain announcement, I would first buy it then tell you.”
On 15 June, BambouClub commentator was indirectly asking again about rumors that Paul expanded:
“You stated on 5 May 2018 that “Stellar will announce an acquisition of Adam Ludwin’s Chain sometime in the next 2 weeks.” Six weeks have now passed at time of writing (15 June 2018) and this has not happened. Has the acquisition been cancelled?”
Stellar versus Chain
Chain has managed to raise earlier over $ 43 million from giant investors like “Khosla Ventures, RRE Ventures, Blockchain Capital, Pantera Capital, Nasdaq, Visa, Citi Ventures, Thrive Capital, BoxGroup, and Haystack.” All of those who collaborate with Chain will be rewarded in Lumens, which can be stored or traded, Fortune reported.
Lumens are the official tokens of Stellar, a blockchain-based company released in 2014 by Jed McCaleb, also known as the co-founder of the Ripple network. Currently, Stellar Lumens or XLM is the seventh most profitable cryptocurrency (according to CoinMarketCap), with a market capitalization of $ 4,054,801,154. The past days, the company announced it has been licensed by New York regulators to trade on the iBit exchange.
Rumors make sense – Stellar has the financial resources, and Chain has the engineering experience. A third party assumed that the deal comes as a response to the battle between the crypto companies. We do not know how Chain services will be introduced within Stellar’s activity however, it is certain that the acquired company will continue to work on its own projects along with current CEO Adam Ludwin.