Analysis of investment in Stellar (lumens)
Preconditions for analysis: I’m interesting in high profitable investment in long term period. I’m not professional investor but have enough experience in this area and follow the current black swan searching trend. Of course I don’t invest in crypto more money than I can loose without any impact on my life.
Short overview of crypto-market history show me that investment in single crypto-currency is highly risky and now I’m in process of crypto-currency portfolio creation.
In analysis I’m looking on such thinks:
- popularity and prevalence
- easy integration in for new customers
- possible integration in banking
- possibility to integrate blockchain as a service in other projects
- good management and development team, big community, clear grow plans
- low transaction fee
- new concepts
- low correlation with other currencies in my portfolio
- current currency price
Popularity and prevalence: currently it’s not popular currency, but current trend looks very optimistic. As we can see here, there are already exist projects based on Stellar: https://www.stellar.org/how-it-works/powered-by-stellar/
Easy integration for new customers: from my point of view Stellar team provides libraries for every popular language for integration crypto-currency in new customer products. I’m not pretty sure about quality of this libraries, but it’s out of scope for my current overview analysis. And using Docker – it’s really cool.
Possible integration in banking: based on Deloitte’s demo video it looks like possible: http://bankinnovation.net/2016/05/deloitte-taps-blockchain-startups-to-build-new-core-banking-system/
Possibility to integrate blockchain as a service in other projects: lumen is mainly currency, but not public blockchain.
Good management and development team, big community: community is quite big, management team looks like understand what shall they do and how to grow. Current overview of github show that there was not many commits in main projects in last 3 month, but most likely it’s temporal state.
Low transaction fee: yes, that’s about lumens and Stellar.
New concepts: maybe I’m wrong but I don’t see any new kind of concepts.
Low correlation with other currencies in my portfolio: for me that’s partially true.
Current currency price: looks overbought.
Conclusion: from my perspective investment in Stellar looks very risky, but big community, customer oriented products, possibility of integration in banking, existed projects make lumen is quite good for investment currency.