Stellar XLM rises 14% after MoneyGram takeover plans
The Stellar XLM token surged 14 per cent yesterday, 22 July, following rumours that the Stellar Development Foundation was interested in acquiring remittance provider MoneyGram International Inc. After weeks of a downward trend, Stellar Lumens now seems to have broken out of it. In the last 24 hours, XLM has risen by 13.03 percent.
Stellar Development Foundation shows interest in MoneyGram acquisition
Anonymous sources told Bloomberg on Wednesday that the Stellar Development Foundation has an acquisition of remittance provider MoneyGram. In this regard, Stellar Development Foundation is a part of the Stellar Network, which uses the native token XLM. The goal behind Stellar Lumens is to enable fast, low-cost and cross-border payments and remittances using XLM.
Stellar is reportedly working with private equity firm Advent International to acquire MoneyGram in the near future. However, no clear statement or decision has been made so far. Nevertheless, the XLM share price was able to rise and thus break out of the downward trend that had lasted for weeks.
Stellar (XLM): Breakout from the downward trend
Stellar (XLM), like most other leading crypto tokens, suffered a loss during the recent market downturn. Compared to its May high of USD 0.78, Stellar saw a 74% decline in its value. Despite this decline, the token is still up more than 160% since the start of the current bull market.
Yesterday, rumours of the Moneygram acquisition sent the XLM token soaring again. Today, Stellar (XLM) also recorded a plus of 13.03 percent - according to this, the upward trend is now continuing.
MoneyGram had previously partnered with Ripple
Although there have been rumours about the takeover for some time, as MoneyGram also wants to participate in cryptocurrencies, it remains to be seen whether these will ultimately come true. However, it could well be that the Stellar Development Foundation will take over MoneyGram.
MoneyGram itself merged with Stellar's competitor, Ripple (XRP), in 2019. Due to Ripple's ongoing regulatory issues with the SEC (United States Securities and Exchange Commission), MoneyGram officially ended its partnership with Ripple earlier this year. Accordingly, the question now looms large as to what will happen next with Stellar and MoneyGram.
Buy Stellar (XLM): Is it worth getting in?
After a long downward trend, the price of Stellar (XLM) now seems to be on the move again. At the moment, the token can be bought quite cheaply. Stellar is a cryptocurrency that has been around since 2014 and allows money to be sent and stored on an open network. The native token Lumens makes it far cheaper to trade assets across borders.
Stellar aims to challenge existing payment providers, which often charge high fees for similar services. The downward trend now seems to have been broken, with the currency gaining around 6.65 percent over the last 7 days. Accordingly, the token, which currently ranks 17th based on market capitalisation, could be a good long-term investment.