Stellar is in talks to buy Chain blockchain-startup for $500 million

Stellar is in talks to buy Chain blockchain-startup for $500 million – media

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Stellar, which developed the XLM cryptocurrency, supposedly entered into negotiations to acquire a Chain start-up for $500 million. As writes, referring to anonymous sources familiar with the case, the Fortune edition, these $500 million can be paid in XLM. Previously, the start-up Chain attracted $43 million from various financial companies, including Capital One, Citigroup, Nasdaq and Visa, as well as from venture capital funds specializing in the IT industry such as Khosla Ventures, Blockchain Capital and Pantera Capital.

As Stellar plans to continue using Chain, which develops corporate blockchain solutions, including the Sequence service, which allows organizations to transfer balances in the token-format of private registries, it is unclear.

According to Fortune, Stellar’s interest in Chain is for the most part that talented developers work in this firm – they are few in the industry, but the demand for them is very high. Such “hiring-acquisitions” have recently become very popular in the crypto industry, especially among wealthy companies like Coinbase.

It is noteworthy that this purchase, according to Fortune, will be held in XLM, that is, not in fiat money and not in securities, but also that investors can freely and immediately sell these coins. Thus, no matter how “bullish” the investor sentiment regarding Stellar’s plans to buy Chain, this purchase may still have a negative impact on the XLM course, CCN notes.

In recent months, the XLM course has received support through several serious partnerships, including cooperation with IT giant IBM, which launched its own crypto-token in the Stellar public network. The Kik chat application also originally planned to emit its Kin coin on Stellar, but then decided to fork of the blockchain and create its own network.

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