Stellar (XLM) Dips After MoneyGram Stake Announcement
Stellar (XLM) Dips After MoneyGram Stake Announcement
The announcement of Stellar's investment in MoneyGram did not sit well with the Stellar community.
According to the latest charts, XLM has experienced a decline of 4.18% to $0.129. This comes as the broader crypto market saw a 1.44% drop, bringing the total market value down to $1.15 trillion for the day.
During the recent session, the open-source payments network revealed that its Stellar Development Foundation (SDF) has taken on a minority investment role in MoneyGram International.
The collaboration between these two entities dates back to 2019, and they formalized their partnership in 2021. This partnership aimed to explore opportunities in the realm of blockchain technology for MoneyGram, the world's second-largest money transfer company.
In November 2022, MoneyGram made a notable move by allowing its US-based customers to engage in cryptocurrency transactions such as buying, selling, and holding through its mobile app.
Commenting on this latest development, Danelle Dixon, the CEO and Executive Director of SDF, shared, "Investing in MoneyGram was a straightforward decision. After years of building a relationship with the company and its teams, we're enthusiastic about contributing to MGI's future endeavors. Our collaboration over the past few years has been rewarding, and we're eagerly anticipating what lies ahead."
As a result of this recent investment, Stellar has secured a position on MoneyGram's board of directors. This new role grants Stellar direct involvement in shaping operational decisions moving forward.
At present, Stellar's native token, XLM, holds the 22nd spot in terms of cryptocurrency market capitalization, with a total value of $3.53 billion.
Over the course of the last three months, XLM has demonstrated an impressive growth of 45% according to the chart. Additionally, it has managed to achieve a 6% increase in value when compared to the previous year.
