Stellar's XLM token rallied 18% following rumors that the Stellar Development Foundation has expressed interest in acquiring remittance provider MoneyGram International Inc.
XLM recovers after rumors about the acquisition of MoneyGram
Stellar Lumens appears to have come out of its downtrend.
The project's native token, Stellar Lumens (XLM), has risen 14% in the last 24 hours. The asset jump may be due to upbeat news from the Stellar Development Foundation. On Wednesday, anonymous sources told Bloomberg that the group behind Stellar had expressed preliminary interest in acquiring MoneyGram International Inc.
Stellar Development Foundation is part of the Stellar Network, the non-profit organization behind the Stellar Lumens token. The organization's goal is to facilitate fast and low-cost cross-border payments and remittances using XLM. Stellar is working with private equity firm Advent International on the acquisition. However, a final decision has yet to be made.
XLM suffered more than most other leading crypto tokens during the recent market downturn, losing 74% of its value from its May high of $ 0.78. Despite the drop, the token is still up more than 160% since the start of the current bull market.
The Stellar acquisition rumor is not MoneyGram's first involvement with cryptocurrencies. In 2019, the company partnered with Stellar's competitor Ripple to provide international payment services using Ripple's native XRP token. However, due to Ripple's ongoing regulatory issues with the SEC, MoneyGram officially ended its association with the company earlier this year.