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A recent announcement revealing that a single cryptocurrency wallet contains roughly 12 billion Stellar Lumens (XLM) which is equivalent to about $4 billion.
The tweet which was sent out by Reign Forex CEO, Don Reign, revealing that the supposed 12 million XML happens to be contained in just one cryptocurrency. This means the wallet holds about 70 percent or 2/3 of the entire XML portfolio that consists of those that are circulating in the market. The XML cryptocurrency currently has a market cap of about $6 billion.
“Apparently there’s one address that holds about 2/3 (12bln/18bln) of the whole Circulating Supply of #StellarLumens” pointed out Don Reign in his tweet.
The 40 billion XLM might represent 70 percent of the total XLM tokens that are currently circulating the market. However, it represents just 40 percent of all the stellar tokens that will ever be created. The distribution of the crypto token was decided when the digital asset was still in the developmental stage.
Half of all the tokens were to be distributed through the Direct Sign-Up program while 25 percent are to be distributed through the partnership program. 20 percent was supposed to be distributed through the Bitcoin program while the remaining 5 percent was to remain with SDF for operational cost purposes.
The announcement has been met with a lot of mixed reaction with some people arguing that it would most likely collapse if the person who owns the wallet decides to sell all of them. This might turn out to be a huge threat to the digital token if the holder of the well-endowed wallet happened to dispose of the massive amount of XLM. This would mark a huge step backward for the cryptocurrency especially considering that it has been performing really well over the past few weeks.
The news of a single wallet holding that much coin is most likely to negatively impact the price of the Stellar Lumens cryptocurrency. This is especially if investors start thinking along the lines of what would happen if the owner of the wallet with the 12 billion Stellar Lumens happens to decide to sell all of them. However, the identity of the person or organization behind the wallet remains unknown.