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Stellar recently announced that they would be doing business with six international banks that collectively operate in 72 countries with the launch of World Wire. It appears as if the news has stirred up some enthusiasts as Whale Alert, a twitter page detected several massive transfers of XLM.
Read more: 6 international banks to launch stablecoins on IBM and Stellar’s World Wire
These large XLM transactions are not fake. The transfered amount is being transferred in segments of 10,000,000 XLM to the address below. It is not clear why it is being split up. https://t.co/h3VHhpZCKK
— Whale Alert (@whale_alert) March 19, 2019
The first transfer saw a monumental 1 billion XLM be transferred to an unknown wallet on March 20. The second transaction was sent from the wallet GDKI to GDQP, initiated by GDQP. The transfer saw 1,000,000,331 XLM around two minutes after the first transfer.
Both the first and second transactions were worth around $111 million. The Stellar website states that the GDKI wallet is the richest XLM wallet holding more than 43 billion XLM.
Additionally, GDQP, the receiver of the first transaction is a wallet on Coinbase and currently holds 39.9999 XLM. The sender, GDKI, was created on August 10, 2016, and held a balance of 47.364 billion XLM. This balance has since been reduced, however.
The community has begun putting theories forward in an attempt to explain the transfers.
My guess is the additional liquidity is necessary to keep price from getting out of control once an announcement is made. I.e. something big like a Facebook $FB token launch. *speculation only https://t.co/QqkE6HmJ0V
— ₲₸ (@GoodTexture) March 19, 2019
They were first sent from the Stellar Development Foundation to an unknown wallet. This wallet sent it to another unknown wallet. Could be anyone but looks like someone big, i.e. Facebook, or a central bank received them for either a big launch or testing.
— Robski (@ryptobob) March 19, 2019
With Stellar being a direct competitor to Ripple and XRP, many XLM fans are eager to see the outcome of the World Wire product.
Read more: Stellar Long-term Price Analysis: Can XLM get above $0.18 in 2019?