The crypto market is getting even more volatile as Elon Musk continues to question Bitcoin and its decentralization. It is interesting how much influence one person has on the market. Besides Bitcoin’s drop, and the meteoric rise of Dogecoin, there is another project that has benefited from Musk’s power, and that’s Starbase (STAR). This crypto rallied by over 6000 percent after Elon Musk tweeted a picture with the words Starbase.
Interestingly, Elon Musk’s tweet had nothing to do with this cryptocurrency but about his Space Company, SpaceX. Immediately the tweet went live, the crypto shot up by 6000 percent, but once people realized that Elon Musk was tweeting about something different, it crashed. Nonetheless, anyone who held this crypto just ahead of the tweet is still up by over 100 percent.
You are probably wondering, is it worth buying Starbase at this point? Now that it is out in the open that Elon Musk’s team had nothing to do with this crypto, the Musk effect is no longer applicable to this crypto. The whole thing has given it visibility, and investors may look more into its fundamentals much better than they did before the tweet.
What Exactly is Starbase?
Starbase is a platform for launching projects. It allows developers to come up with new projects, launch them and exchange them for other tokens.
As per their website, several projects have successfully launched on Starbase so far. One of the projects that have successfully been launched on Starbase is HubrisOne. This wallet allows users to come up with bank accounts for EUR, GBP, and USD then connect them to existing bank accounts. It is one of the projects that point to Starbase as a viable platform for launching successful projects.
The Star Token
The star token powers the projects launching on this platform. It is an inflationary token that one can use to fund their projects, pay supporters, and even use it to exchange goods and services. Since it is inflationary, it has similar characteristics to fiat.
This not only makes it practical for everyday transactions but also for project financing. It is one of the key features that have pushed this project to become the huge success that it is shaping up to become.
The Protocol is Quite Innovative
The STAR protocol is designed so that only tokens can be issued for funding new projects on the protocol. This creates uniformity in project funding and is a major source of demand for the token.
The STAR protocol also allows for easy connection to decentralized exchanges. For instance, when using STAR, one can easily connect to Loopring, 0xprotocol, and the Kyber network. The idea is to make the process of sending Ether to the projects they are funding.
This is one factor that will make this platform to investors looking to crowdfund for their projects going into the long run.
As for the price, this project is likely to be highly volatile in the short term. That’s because the entire market is highly volatile at the moment. This is driven by the tweets by Elon Musk against Bitcoin. The volatility in STAR is likely to be added because it shares a name with a facet of Elon Musk’s projects.
However, once the dust settles, this will be an interesting project to watch. It is targeting a segment of the crypto market that has lots of growth potential.
Disclaimer: This article is not trading advice. TheDechained holds no liability for investments made on the basis of this information. We recommend independent research before making a decision to invest.