Alt coins,  Media

Stellar’s not-so-stellar few days

Facebook denies friending Stellar

Stellar’s lumen has gone dark on Poloniex, capping a wild few days of rumors and refutation of rumors. Depositing or withdrawing the token has temporarily been halted on the Circle-owned trading platform days after Facebook said it wasn’t working with the crypto company.

On Friday, Business Insider published a report claiming, “In recent months, Facebook’s blockchain team, led by the former PayPal executive David Marcus, has met with the open-source payments-technology company Stellar about some of those opportunities, people familiar with the talks told Business Insider.”

The BI story cited “a Stellar insider,” for some fairly pro-Stellar spin:

“‘They’d be taking the rug out from under the banks,’ the person said. ‘They can add a bank more quickly than a bank could build a social network.’”

BI said Stellar wasn’t the only crypto tech player Facebook was talking to, and that talks with Stellar were in the “early stages”. That led its token, the lumen, to rally 8 percent.

But “early stages” may have meant “pre-discussion” since Facebook denied anything is going on between the social media behemoth and the sixth-place crypto token issuer.

As Cheddar reported on Friday:

“’We are not engaged in any discussions with Stellar, and we are not considering building on their technology,’ a Facebook spokesperson told Cheddar.“

In other words, the $519 billion internet juggernaut isn’t working with the $3 billion crypto company. They may have met at a party recently or something but, like, they’re so not dating but, like, we know Stellar wants everyone to think that’s happening because it would be, like, the most popular token at school.

The price per lumen dropped from 23 cents to 20 cents before returning to 23 cents on Monday.

As has been reported at just about every media outlet, Facebook has a crypto team in place now headed by former PayPal exec David Marcus. Modern Consensus reached out to a senior executive on the Facebook crypto project but he has yet to return that message or the one before it asking him about something else.

And then on Monday, some more unhappy news for Stellar: Depositing or withdrawing lumens was suspended on the Poloniex exchange (now well over 10 hours, as of this writing). This comes while the price of lumens was taking a beating along with the rest of the cryptocurrency complex.

stellar lumens
Stellar lumens on Poloniex: No deposit, no return

It has since given back its temporary gains and, as of now, is testing the 20-cent level.

Disclosure: Lawrence Lewitinn is married to a Facebook employee and holds shares in the company.

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Lawrence Lewitinn, CFA was the founding editor in chief of Modern Consensus. Disclosure: Lewitinn owns no cryptocurrencies in his portfolio.