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However, there seems to be some confusion as to how these tokens are created or how they are supposed to be used.

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Similarly to how Bitcoin and other cryptocurrencies work, a Lumen cannot be held physically, yet users can exert digital ownership of these assets with a private key.

The Stellar network launched with 100 billion STR tokens in 2014, which were eventually renamed to Lumens in 2015 as part of a major platform overhaul. That assumption is wrong, though, as Lumens are designed to prevent transaction spam on the network.

Whether or not that means one should invest in XLM, remains a question that is difficult to answer.

There will always be a market for these tokens, but they are not necessarily a speculative asset by any means.

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