Stellar (XLM) Currently overseen by China - The last few days have seen Stellar investors (XLM) become panic after a drastic drop in the price of this crypto. However, if you are strong enough to defend your Stellar, then there is good news for you. Stellar is one of 28 blockchain projects that have been selected for assessment by a scientific institute that will work under China's ministry of industry and information technology. So why is this important for Stellar holders?
Well, China is one of the most important crypto markets in Asia with Japan and South Korea. However, in the past, the Chinese government has been very hostile towards cryptocurrency, insofar as it prohibits centralized exchange, and the launch of ICO. This has reduced the mood of Chinese cryptocurrency investors. Big players are hesitant to put their money into crypto in such situations.
However, now the Chinese government makes this judgment only with certain crypto, it is only natural that investors tend to be more interested in them, more than any other blockchain project out there. In the near term, we tend to see significant spikes in this volume 28, and subsequent price increases. Thus, whoever holds Stellar (XLM) is currently likely to benefit from a price rally, driven primarily by mainland Chinese investors.
Then there is the problem of adoption. Stellar is one of the blockchain projects that has seen significant adoption rates to date. For example, Stellar Lumens already has an agreement with IBM, a deal that many speculate will see Stellar being the coin of choice for Central banks. With inclusion in this ranking, Chinese companies including Chinese banks can look to take advantage of this favorable environment and adopt Stellar Lumens. Massive adoption in China can create a ripple effect where companies around the world are moving to adopt blockchain stars as well.
The inclusion of Stellar [XLM] in this rank is also important because it can lead other countries that have a tough stance on crypto to follow the same route. That's because we live in a globalized world, and the actions of one nation, especially a country as important as China, are likely to be followed by another country. Not surprisingly, the EU and the US followed suit and created a similar institution for the rating of cryptos. This is guaranteed to lead to crypto reception worldwide, and Stellar has a good position to ride this wave of adoption.
In essence, whoever holds the stellar at the moment and is strong enough to hold the stand to reap big in the future. The future looks bright, now that China is showing a gentle attitude towards crypto. In addition, the current price decline has nothing to do with Stellar. This is a broad market decline, and after it settles, Stellar (XLM) will rise.