## What Is XLMDOWN (XLMDOWN)?

[XLMDOWN](https://coinmarketcap.com/currencies/xlmdown/) is a leveraged token based on the price of [Stellar (XLM)](https://coinmarketcap.com/currencies/stellar/) and traded on [Binance Smart Chain](https://coinmarketcap.com/currencies/binance-coin/). Stellar is an open network that functions as a payment system. Upon launch, one of its declared goals was boosting financial inclusion but that later changed, and now Stellar is helping connect financial firms with the help of blockchain technology. Its XLM token is the bridge reducing transaction fees and friction for cross-border payments. Stellar is thus similar to [Ripple (XRP)](https://coinmarketcap.com/currencies/xrp/), another payment-oriented crypto asset. It’s worth noting that Stellar’s code is based on a hard fork of the Ripple protocol. 

XLMDOWN enables traders to speculate on the price of Stellar with increased leverage but without the risk of liquidation. The XLMDOWN token is a short position, meaning traders benefit from a decreasing price of XLM. Binance Leveraged Tokens don’t maintain constant leverage but constantly rebalance in a range between 1.25X and 4X to maximize profitability. 


## Who Are the Founders of XLMDOWN?

Stellar (not to be confused with XLMDOWN) was founded by Jed McCaleb, a former Ripple executive, and Joyce Kim, a lawyer. McCaleb left Ripple after a spat over the company’s future direction and founded Stellar with the goal of eliminating the friction people normally experience when sending money around the world. Currently, he is serving as CTO at Stellar. The current CEO is Denelle Dixon, a former COO of Mozilla, best known for its internet browser. 


## What Makes XLMDOWN Unique?

Leveraged tokens give holders leveraged exposure to crypto markets without facing liquidation risks, funding rates, or actively having to manage the position. Leveraged tokens actively rebalance themselves periodically. For instance, the rebalancing of the XLMDOWN token is governed by Binance proprietary algorithms and aims to maximize the correlation between the token and the underlying margin-leveraged positions.

There are two types of leveraged tokens, BULL or UP tokens for bullish positions and BEAR or DOWN tokens for bearish positions. A token like XLMDOWN tracks the price of XLM and gains from price decreases. If the token gains from a price decrease, it reinvests this money and increases the leverage up to a maximum of 4. Say XLM goes down one day and goes down the next day as well. The XLMDOWN token would outperform a regular leveraged position because of reinvested profits. On the flip side, if XLM goes down one day but rallies the next, the token would underperform because of increased exposure.


#### **Related Pages:**

Check out [Stellar (XLM)](https://coinmarketcap.com/currencies/stellar/) — the token of Stellar, the crypto asset XLMDOWN is based on.

Check out [Binance Coin (BNB)](https://coinmarketcap.com/currencies/binance-coin/) — the native token of the Binance Smart Chain ecosystem.

Learn how leverage works in our [guide to leverage in DeFi](https://coinmarketcap.com/alexandria/article/a-deep-dive-into-leverages-in-defi-borrowing-margin-trading-leveraged-tokens-and-options-finnexus#toc-leverages-in-leveraged-tokens).

Get the latest crypto news and latest trading insights with the [CoinMarketCap blog](https://coinmarketcap.com/alexandria/categories/blog).


## How Many XLMDOWN (XLMDOWN) Coins Are There in Circulation?

There is no coin supply as such since leveraged tokens are derivative products and not cryptocurrencies in the traditional sense. That’s why traders can purchase an unlimited amount of XLMDOWN. These tokens cannot be withdrawn but only redeemed for a cash position in another currency.


## How Is the XLMDOWN Network Secured?

XLMDOWN are unredeemable tokens on the [Binance Smart Chain](https://coinmarketcap.com/alexandria/article/what-is-binance-smart-chain). BSC is secured through the [proof-of-stake](https://coinmarketcap.com/alexandria/glossary/proof-of-stake-pos) consensus mechanism. 21 validators are elected every 24 hours to validate transactions and maintain blockchain security. These validators have to stake a certain amount of BNB coins with Binance to be eligible to do so.


## When Will XLMDOWN Trading Begin?

Binance launched XLMDOWN in December 2020.


## Where Can You Buy XLMDOWN (XLMDOWN)?

XLMDOWN and many other leveraged tokens are available on [Binance](https://coinmarketcap.com/exchanges/binance/). 

XLMDOWN

LayerZero

Gorilla

LandWolf (SOL)

Bitcoin

WATER

Zignaly

Engines of Fury

Biaoqing

Mumu the Bull

Moonchain

Solana

Toncoin

Ethereum

Notcoin

Shiba Inu

Kaspa

Pepe

Niza Global

Artificial Superintelligence Alliance

Cardano

Bonk

Bullish CDP LHS1 May Campaign

Big Time - CDP LHS2 (Desktop Only) 2024

Uphold CDP LHS2 May campaign

BitGet CDP LHS2 May campaign

Bullish Search Bar Banner

Niza Global Search Bar

BingX Search Bar July Campaign

DexCheck Community Panel

BingX CDP Community July Campaign

Solidus AI CDP Community

Bullish Portfolio Page Banner

Solidus AI Portfolio Page

Neutral

Extreme fear

Fear

Greed

Extreme greed

♻️ Rehypothecated

 🔥 Memes

 🔥 Solana Eco

 🔥 AI

XLMDOWN hinta
XLMDOWN

XLMDOWN community

XLMDOWN uutiset

Tietoa XLMDOWN

Suosituimmat kryptovaluutat

Trendaavat