Interesting news has come out today in regards to Blockchain startup Mobius Network choosing Stellar, trading as XLM, over Ethereum for token sales. While Ethereum has been trading at a very favorable rate due to positive reviews through handling the market correction, XLM is being thrusted into the spotlight as a contender at a fraction of the cost due to her rival’s lack of scalability. Mobius operates as a protocol in payments for various online retailers and services, but the company’s most prominent feature is the head of the advisory board, Jed McCaleb.
As the co-founder of both Ripple and Stellar, there is very little debate as to whether Ethereum was actually being considered as an alternative, but the issues with Ethereum are still very real. While co-founder and CEO of Mobius, David Gobaud, stated, “We look at Ethereum like AOL or Myspace,” I would take this with a giant grain of salt as to display such propaganda during an ICO is definitely a red flag. Ethereum has been around for an extremely long time in the world of cryptocurrency, the disrespect that this company is showing is telling in terms of unprofessionalism and immaturity. The outlandish comment from Mobius that has yet to even release their own coin is certainly enough for many investors to stay away, but in from a bigger picture, shows that Stellar is gearing up for battle.
Gobaud went on to say, or rather parrot his angel investor McCaleb, that the language which Ethereum was written is not secure contrasting with the great reputation that Stellar has in the industry of being highly capable in many different applications. As smart contracts will undoubtedly be an increasingly important attribute of the digital economy, the refined technology that she has already developed gives the cryptocurrency a definitive advantage over the heap of competition entering the market each day. This foundation and history of success will lead investors moving capital into a sound financial commodity that is able to rise above the technical issues and large scale thefts which are occurring with greater frequency.
Regardless, XLM is continuing to have a banner year and will most certainly be a long-term solution to many digital entities that are looking for ways to enter the growing virtual future. As Stripe has floated the idea of switching to Stellar due to high BTC transaction fees, XLM continues developing and growing stronger by winning business contracts. The organization that is surrounding Mobius will give the company a serious advantage over her competitors, but the unwarranted contempt that has been displayed will not raise the price of the coin once released. This proxy war that is taking place is a major concern for investors as many may remember that a simple text from John McAfee sent Verge (XVG) up 50% overnight. While the recovering cryptocurrency market has been taking cautionary steps, the volatility has only slightly subsided. If McCaleb continues his aggressive ways of not only building his own product, but tearing down his competitors, there is a significant upside to the projects with which he becomes involved.
Stellar (XLM) Begins Proxy War with Ethereum (ETH) Through Mobius Network was originally published in Cryptocurrency Financial on Medium, where people are continuing the conversation by highlighting and responding to this story.