Keybase Giving Away 2 Billion Lumens
The Messaging Application Keybase has pre-emptively competing against Facebook’s GlobalCoin. The encrypted service announced that it’s giving away Stellar Lumens, the largest competing cryptocurrency to GlobalCoin. Both coins look to create cross-border financial bridges on a digital scale. This will be accomplished by providing two billion Lumen Coins to hundreds of thousands of users using Keybase. At today’s current valuation, this means the exchange is giving away $120 Million in digital currencies over the next twenty months. The first set of the Stellar Lumen Giveaways began on Monday, September 9th, 2019. The first round consisted of one hundred million Lumens, equating to roughly $6 Million in cost for Keybase.
Stellar Lumens are rated 15th on the CoinMarketCap Tracking Site, with Lumens having a total market valuation of $1 Billion. Right now, the Lumen has underperformed to expectations, causing it to be one of the worst-performing digital currencies recently. The cost of the Stellar Lumen has dropped by more than half in twelve months. When exchanges like Keybase begin these free giveaways, their called airdrops, these drops act as a secret tactic to lure investors into registering with the Keybase digital currency messaging service. An increase of trading activity is welcomed at this messaging exchange considering that companies like Microsoft and Samsung are beginning to create their digital currency services.
There have been other exchanges that have managed an airdrop in the past. Exchanges like Coinbase provided a free giveaway of 1 Billion XLM Coins, Blockchain.com gave away 500 Million XLM Coins, and Binance releases 9.5 Free XLM Coins. Keybase officially holds the record for the most massive free giveaway in digital history by providing 2 Billion Lumens over twenty months. It’s not surprising, though, as the leaders behind Keybase were the prior founders of OkCupid. The dating service primarily relied on free offerings to clients to turn a hidden profit.
Keybase’s CEO has stressed that this airdrop is considerably different from prior giveaway offerings in the cryptocurrency industry. The critical difference is that the funds are being transferred through a chat application, similar to what Facebook wants to accomplish with their GlobalCoin. Keybase believes their jump on Facebook will enable them to gain priority control of the cross-border marketspace. Additionally, Keybase hasn’t faced any backlash from government officials, unlike Facebook or the Libra Association. However, the way these funds will be spent via a messaging service isn’t known. Available for purchase are chatbots that provide certain features on the Keybase application.
The Stellar lumens Development Foundation
The Chief Executive Officer for the Stellar Development Foundation, Danelle Dixon, is thrilled that Keybase has begun providing the Lumen Coin as a free giveaway. It enables the token to have an opportunity for growth, which has been difficult in the oversaturated market of digital currencies. The Lumen is now on track to rise in the CoinMarketCap Rankings, and with its newfound popularity, Danelle Dixon will need to manage the crypto foundation with professional integrity. Considering she created the Mozilla Firefox Browser; this shouldn’t be a difficult task for the female CEO.
However, numerous analysts have stated Keybase Clients should tread their Stellar Lumen Coins slowly and that this offering could potentially backfire on traders down the road. This hasn’t stopped Keybase from being optimistic with their new giveaway, which will provide added trading activity on their network. It’ll also benefit Stellar Lumens by teaching numerous traders how this coin can best be optimized. Subsequently, selling pressure will rise drastically, and the popularity of the Lumen could inevitably rival Bitcoin or Global Coin. It’s estimated that the coin has nowhere to go but up.
Tom Arran
