Stellar, an open-source protocol for value exchange founded in early 2014 by Jed McCaleb and Joyce Kim is in talks to acquire blockchain startup Chain for $500. Stellar Lumens also known as XLM is the cryptocurrency (digital currency) of the stellar network. It is an open-source code for money exchange, as reported by Fortune.
The goal of XLM network is to connect people, payment systems and banks. In the world of cryptocurrency, Bitcoin is the cryptocurrency of the Bitcoin network. Just like Bitcoin, Stellar is the network and Lumens is the cryptocurrency of the stellar network. It is a distributed payment framework. It means they use the internet to communicate and connect with other stellar servers which allows a quick, easy and authentic global money exchange. Currently, Lumen is one of the most popular cryptocurrencies in the world
The Stellar’s current market cap is at $4.3 billion and it will pay $500 million worth of XLM to acquire Chain, the San Francisco-based startup building blockchain technology for the financial industry. Chain had raised more than $43 million from different investors like Khosla Ventures, RRE Ventures, Blockchain Capital, Pantera Capital, Nasdaq, Visa, Citi Ventures, Thrive Capital, BoxGroup, and Haystack.
According to Fortune, Chain’s supporters will receive payment in the form of Lumens, which they will be able to hold or sell immediately after the transaction.
Stellar’s interest in Chain is mainly based on the fact that the company has talented blockchain developers, which are in high demand but short supply. Such “acqui-hires” have become increasingly common in the ecosystem, particularly among cash-rich firms like Coinbase.
It’s not clear what Stellar’s plans are for the San Francisco-based Chain, which creates endeavor blockchain arrangements including Sequence, a record as-a-benefit item that enables associations to move adjusts in token configuration on private records.