Cryptocurrency

Stellar Suffered an Inflation Bug in April 2017 Resulting in Creation of 2.25 Billion XLM: Messari

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Stellar is a decentralized set of rules/program which helps in converting digital currency to fiat currency cross-border. It has a token named XLM. Messari, on the other hand, works as a watchdog of the crypto space and is making sure all the required data is available to all the crypto users. It is basically an intelligence organization which focuses and operates in the crypto space.

Messari has recently made a claim that Stellar (XLM) underwent a fraudulent inflation activity in April 2017 which lead to the creation of 2.25 billion XLM  which worth would be around $10 million ( during that particular time). These tokens were later burned. Messari revealed this report in its issue published on March 27.

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As per the report published by Messari, the fraudulently formed XLM tokens which were created in a huge number, which were equivalent to 25% of the total circulating supply. These tokens were then shifted to the other crypto exchanges and were sold during the first six months of 2017. The exchange burned a similar number of tokens in order to maintain the value of the token in the market.

The report also stated that the records or the details of this activity are no more available. The key addresses used during this are no more accessible on Stellar Expert. However, one can trace the track of the happenings by using the Horizon Application Programming Interface. The report also expressed its surprise by saying that no media reported of this news, the fraud that took place and the resultant burning of the token. Messari is the first to do this.

At present, Stellar is the 8th largest cryptocurrency in the market (considering the market cap). Its present total market value is more than two billion. The company has not tried to keep this a secret. As a matter of fact, a Stellar executive has stated this in the Messari report that the bug mentioned in the published report and the subsequent exploitation is mentioned in the protocol’s release notes, twice. It says,

“We recognize that Stellar has since become significant financial software, and our disclosure standards have grown to reflect that reality. There’s been no notable bug since, and if there were, we would disclose it in full detail as soon as it was patched.”

The company also mentioned in its roadmap of 2019 (which was released in February) that it is committed to keeping a full accounting track of all XLM by the end of this year.

Ankita Baruah

Ankita has recently joined the CryptoNewsZ team. She has a master's degree in English Language and Literature and 10+ years of experience in dealing with different types of content for print as well as digital media. Writing is her passion. Precision and originality is what she believes in and makes sure she abides by them in her write ups. When Ankita is off work, you will find her engrossed in books or enhancing her culinary skills!! You can also mail her at [email protected] to discuss anything related to her reports.

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