- The Stellar team published the budget for ten years ahead.
- XLM/USD has been one of the worst-performing coins on a weekly basis.
The Stellar team drafted a financial plan, scheduling $1.3 billion worth of expenses in XLM that will be allocated within the next ten years. They will be sold on the market for fiat to fund the company’s budget. During the first three years, $400 million or 9 billion XLM will be spent for that purpose. The coins are already distributed and frozen in three escrow wallets. They will be released once a year.
The overall ten-year items of expenditures look like this: 40% of the fund or 12 billion altcoins will go to the development and support of the project. The budget includes salaries, code and application updates, operating costs and political lobbying for Stellar. Another 40 will be spent on venture investments, friendly takeovers, payment of grants and payment for events that supports the cryptocurrency ecosystem.
The balance of the fund in the amount of 20% will go to various airdrops. The company hopes to withstand the continuous decline in XLM.
Experts point out the futility of such attempts, in the absence of interesting technological solutions.
Recently the company announced the decision to stop the airdrop worth of $120 million ahead of schedule.
Read more details here
XLM/USD: technical picture
XLM/USD hit the intraday high at $0.0475 and retreated to $0.0465 by the time of writing. The coin is the biggest loser on a weekly basis, down nearly 10%. From the technical point of view, the price needs to recover above at least $0.0470 (a confluence of SMA200 (Simple Moving Average) 1-hour and the upper line of 4-hour Bollinger Band) for the recovery to gain traction. Once this area is broken, $0.05 (SMA100 4-hour) will come into focus, followed by $0.0540 (SMA200 4-hour).
On the downside, a sustainable move below $0.0460 will increase the downside pressure and push the price towards $0.0420. This support has been verified twice, on December 18 and 17, which means it has the potential to slow down the sell-off in the short run.
XLM/USD 4-hour chart
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