$LUNA grew like crazy.
Creating a $37B market capitalization.
But why is everyone so bullish on it?
Do Kwon and Daniel Shin are founders of Terraform Labs in 2018 and they created Terra.
At its core, Terra is a blockchain protocol that’s used to build dapps, smart contracts and protocols.
But it also has an innovative algorithmic stablecoin for its ecosystem: $UST
To keep the price at $1 USD, they use 2 type of coins: $UST & $LUNA
6 Reasons Why People Are Bullish On Terra
- Innovative algorithmic stablecoin:
- For UST to maintain a price of $1 USD, it must be burned/created accordingly.
- For UST to be burned/created, LUNA must be traded for it.
- The people making these trades make arbitrage rewards.
- Essentially, LUNA is used to incentivize people to keep UST at a stable price.
- It has traction:
- UST is the 3rd largest stablecoin
- LUNA has a market cap of $37B+
- 20+ e-commerce stores are accepting UST.
- In Korea, Terra offers lower transaction fees.
- Buying in stores with a credit card can cost you 3% while UST would only cost you 1%.
- Terra is interoperable on multiple blockchain
- Terra is continuously working on expanding the number of blockchains the protocol runs on.
- The Protocol Benefits
- Terra Luna offers LUNA depositors an annual percentage yield of 20% through the Anchor Protocol.
- The Mirror Protocol allows Terra users to easily create fungible assets.
- Incredible Founders
- Daniel Shin
- Founder and CEO of Ticket Monster in Korea with a GMV of $3.5B and CHAI Corporation
- Co-founder of 2 other companies
- Do Kwon
- A former software engineer for tech titans Apple and Microsoft
- Featured under Finance and Venture Capital of Forbes’ “30 Under 30” 2019 as top leader of Finance and VC
Terra is a blockchain system that utilizes the stablecoin algorithm to fight crypto volatility.
It is building a fintech ecosystem for users and its e-commerces.
And, it has been growing in a tremendous rate.