Stellar, the younger brother of Ripple (XRP) made huge strides this week to overtake Litecoin and become the sixth largest altcoin by market cap. Charlie Lee, Litecoin founder, congratulated Stellar on Twitter, but said he doesn’t believe the market cap is the most accurate way to rank cryptocurrencies.
Charlie Lee suggests only mined tokens should be ranked
Lee also pointed out that the market cap doesn’t “reflect decentralisation or how it’s created.” Lee’s comments are not a case of sour grapes; Stellar and Ripple are not tokens that need to be mined, like Litecoin and Bitcoin. He also believes that the coin rankings should only include the proof-of-work cryptocurrencies. If his suggestion is accepted, Lumens (XLM), EOS, Cardano, and IOTA would also be removed from the Top 10.
Coinmarketcap.com ranks any digital coin based on the same market cap metric by default. Therefore, the given metric doesn’t reflect just how decentralized a coin really is. And that is a significant point for those who are big decentralisation supporters. It is after all one of the foundation stones of cryptocurrency.
Stellar approved under Islamic law
Stellar is an interesting platform and a not-for-profit one at that. Its aim is to “connect people to low-cost financial services to fight poverty and develop individual potential.” That is a goal worth supporting. It has also made some major headway this week as The Shariyah Review Bureau, an Islamic advisory firm based in Bahrain, certified both the Stellar platform and its Lumens tokens (XLM) under Sharia law, meaning it can be adopted in countries following the Islamic legal system.
Stellar also bought Chain, a blockchain finance startup in June for $500 million, which it paid in XLM, and Coinbase is considering listing XLM in the future.
The SEC may have to get to grips with the advance of digitally ‘printed’ tokens like XLM and XRP now. It has already agreed that decentralised coins aren’t securities, but these two coins don’t tick the ‘decentralised’ box, meaning the SEC will have to consider how to define them.