Stellar (XLM) is the 12th largest cryptocurrency in the world at a market capitalization of $1,142,091,322. But its price started to slumped after the announcement of the incoming airdrop of XLM, Stellar’s network tokens.

While Ripple, among the largest blockchain and cryptocurrency businesses, has been selling off its XRP power holdings, valued in the hundreds of millions of bucks, one of its cofounder decided to part ways with the project.

After departing Ripple some decades back, Jed McCaleb started Stellar in 2014. Today, the main topic on all cryptocurrency involved circles is the Stellar giveaway. Stellar is giving away about $124 million in XLM.

Keybase and Stellar partnered for a huge airdrop of Lumens (XLM), the token of the Stellar network. The Keybase’s CEO claims that this giveaway will be different,  but many aren’t convinced by the benefits of it. Nevertheless, the purchase price of XLM fell 76% since the very first event of the type was declared.

Stellar Giveaway

On September 9th, the Stellar Development Foundation (SDF) announced it would be giving up to 2 billion Stellar Lumens (XLM) during the next 20 weeks to customers of Keybase.

The Stellar Development Foundation is a nonprofit company started in 2014 to help grow the Stellar network.  Keybase is a key directory where people can connect their identities to their private keys.

The effort, which will operate for no less than 3 months based on consumer attention, is defined to automatically dispense 100 million XLM ( valued at approximately $6 million USD at the announcement moment), on a monthly basis throughout the offering to anybody who maintained a confirmed Keybase account prior to the airdrop’s statement.

Why is Stellar giving away free XLM tokens?

The SDF made it clear once more that the SDF is a nonprofit, and a non-stock entity. Therefore, the simple goal of the initiative will be to reevaluate the fiscal space by enabling more people to possess decentralized assets. In so doing, the CEO of SDF, Denelle Dixon considers the unbanked are going to have the ability to transact cross border transactions immediately and also to additionally be practice own-banking.

They started earlier this September, to airdrop 100 million XLMs (worth ~$6.1 million) to 300,000 Keybase users. The rest of the tokens will be given away over the next 20 months on the 15th of each month, starting in October. Each batch will consist of 100 million XLMs.

Every Keybase consumer is eligible to get a maximum of $500 value of XLMs, according to the statement. The limitation per-person implements over the whole path of this airdrop, Dixon told The Block. Users have to get a documented Keybase accounts to be eligible, a measure meant to stop bot signups, stated Keybase.

What is Keybase?

“By giving out free Lumens, SDF hopes that Keybase users can be more familiar with blockchain as well as the Stellar network.”

Keybase is a free messaging app, community and document transport hub minding encryption for consumer security. Keybase cofounders Max Krohn and Chris Coyne also constructed two other successful apps: SparkNotes and OkCupid.

Keybase isn’t crypto-native, meaning that its users don’t have blockchain knowledge.

The founders expect that this airdrop will bring new users to their platform.

“We definitely expect the Airdrop will bring new users to Keybase,”

On May 14, 2019, Keybase announced via a blog post, that the platform will make it easier for its users to send cryptocurrency, which is considered to be a complex task. Back then, Keybase noted that it is not only prone to human mistakes the task of sending digital assets to a complex string of numbers and letters, but one can be the victim of social engineering hacks. The article clarified that Keybase brings safety to the mixture and incorporates the capacity to deliver XLM from 1 individual to another, in a more straightforward manner on its own platform.

One of the founders explained:

“Keybase is linking strong cryptography to real-world identity, and our partnership with the Stellar Development Foundation means that users can interact with people financially in the same way they do socially without worrying about hackers or data breaches,”