The price of Stellar jumped nearly 20 percent on news that MobileCoin, a privacy-based mobile token that uses its Consensus Protocol, had a successful $30 mln ICO. The cryptocurrency is trading just a fraction of a cent below its most recent two-month high at $0.41.
Stellar is already positioning itself as a possible launchpad for initial coin offerings. Although MobileCoin is not a Stellar-based project, integration with Stellar Consensus Protocol suggests companies are attracted to the platform’s speed and scalability.
Boost for Stellar
Stellar initially spiked on Thursday as it went from $0.36 to $0.38 along with the rest of the market which moved positively, but, after the news broke of MobileCoin’s success, which was predicated on Binance joining in the funding round, Stellar made it to $0.41.
Daily trading volumes amounted to $187 mln, according to CoinMarketCap. Binance is the largest market for XLM, with roughly one-quarter of total transactions processed through the exchange.
MobileCoin’s movement for Stellar
The boost for MobileCoin is clearly also a boost for Stellar, and it is also significant as it represents a move for Stellar to become a useful platform for ICOs. Ethereum has long been the main and most well-known platform for ICOs, but there are alternatives out there.
Stellar has put forward favorable solutions for overcoming the so-called gas problem. This means Stellar could become the bridge for users looking to use Blockchain solutions to send and receive money through instant messaging services if MobileCoin proves to be a success on this Blockchain.
Moving on up
Stellar has carved out a strong presence in the top-ten cryptocurrencies when measured in terms of market cap. The platform is currently No. 8 with a total value of $7.5 bln, which is roughly $120 mln shy of Cardano.