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The Stellar coin (XLM) of case 56 not only experienced a sharp decline due to team-related selling scandals but has also been exploited multiple times by criminals for pyramid schemes, resulting in significant losses for many ordinary investors.
In the early stages, Stellar coin relied on airdrop promotions, allowing users to receive 6,800 coins by linking their social media accounts, which attracted a number of early investors. However, during the project's development, there were multiple reports in the market about large private sales of tokens by its team and foundation. A large number of tokens flooding into the market disrupted the supply-demand balance, and every time related news broke, it led to significant price drops, causing substantial losses for retail investors who bought at high prices. This is also a core reason why it has been listed as a case of 'cutting leeks'.
In addition to the selling issues of the project itself, XLM has also become a 'packaging tool' for pyramid schemes. For example, between 2017 and 2018, a group used the name of Stellar coin to hold promotional meetings, manipulating coin prices through self-built platforms to create false prosperity, with the amount involved reaching 500 million yuan; another group falsely claimed that buying their 'mining machines' could yield annual profits of up to 3.65 million dollars, developing 160,000 members through a referral rebate model, with the amount involved exceeding 200 million yuan. Ultimately, after these scams collapsed, most of the funds invested by the investors could not be recovered.
The price of Stellar coin is also affected by the overall fluctuations in the cryptocurrency market, lacking stable value support, and ordinary investors may encounter losses if they are not careful.
In the early stages, Stellar coin relied on airdrop promotions, allowing users to receive 6,800 coins by linking their social media accounts, which attracted a number of early investors. However, during the project's development, there were multiple reports in the market about large private sales of tokens by its team and foundation. A large number of tokens flooding into the market disrupted the supply-demand balance, and every time related news broke, it led to significant price drops, causing substantial losses for retail investors who bought at high prices. This is also a core reason why it has been listed as a case of 'cutting leeks'.
In addition to the selling issues of the project itself, XLM has also become a 'packaging tool' for pyramid schemes. For example, between 2017 and 2018, a group used the name of Stellar coin to hold promotional meetings, manipulating coin prices through self-built platforms to create false prosperity, with the amount involved reaching 500 million yuan; another group falsely claimed that buying their 'mining machines' could yield annual profits of up to 3.65 million dollars, developing 160,000 members through a referral rebate model, with the amount involved exceeding 200 million yuan. Ultimately, after these scams collapsed, most of the funds invested by the investors could not be recovered.
The price of Stellar coin is also affected by the overall fluctuations in the cryptocurrency market, lacking stable value support, and ordinary investors may encounter losses if they are not careful.
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