On September 11, TokenSoft announced it has integrated the Stellar blockchain into its services for supporting Initial Coin Offerings (ICOs). The news immediately pushed Stellar’s price higher, reflecting steady growth as the project continues to sign new agreements month after month. While Stellar Lumens (XLM) does not yet rival Ethereum (ETH) in market share or ecosystem size, it increasingly presents itself as a reliable alternative. Read on to learn more about XLM’s outlook and what this integration means for the market.
TokenSoft: ICO services previously focused on Ethereum
TokenSoft is a software-as-a-service (SaaS) platform that helps clients sell tokens in compliance with regulations during ICOs. Until now, these token sales primarily used the Ethereum blockchain. TokenSoft’s goal is to offer a secure, auditable platform so that the rise of ICOs proceeds with greater transparency and reliability in response to recent criticisms about their trustworthiness.
To achieve this, the platform provides multi-signature wallets for Ethereum and Bitcoin (and now Stellar), investor verification (including support for fiat currencies), and robust procedures for KYC, AML and OFAC checks. TokenSoft also manages token sales securely, offering a full suite of tools required to launch a compliant ICO.
Stellar integration at TokenSoft
TokenSoft states that adding Stellar was driven by clear client demand. Interest was first visible at the end of 2017, and TokenSoft began integrating Stellar Lumens and Stellar-based tokens in March 2018 through a pilot program. After a successful pilot during the summer, TokenSoft officially announced Stellar support in early September 2018.
Beyond client requests, TokenSoft highlighted several reasons for choosing Stellar. XLM-based tokens are easier to program in certain respects, including built-in authorization and multi-signature support. TokenSoft’s teams also praised Stellar’s maturity, citing its thorough and accessible documentation. Finally, Stellar’s transaction fees remain comparatively low versus many other altcoins, making it an attractive option for token issuers and participants.
XLM price climbs
For investors, the integration was encouraging: Stellar surged about 6% within hours of the announcement. It was the only major cryptocurrency to advance that day while several altcoins declined. On September 11, XLM moved from $0.185 to $0.205, and the upward trend continued on September 12 with prices remaining above $0.20. The momentum persisted through the month—by September 23, Stellar approached $0.30.