Terra announced that it raised up to $32 million in its seed funding stage. It went further to name four crypto exchange giants in its list of investors. The list includes Binance, Okex, Huobi, and Upbit. Apart from these four exchanges, the list also includes crypto firms like FBG capital, 1kx, Kenetic Capital, Arrington XRP Capital, hashed, Translink Capital and Polychain Capital.
Concerns raised on the viability of Tether (USDT) led to the introduction of stablecoins such as Stronghold USD and Stasis EUR. Unlike most stablecoins, Terra is focused on E-commerce integration and it already has an existing user base. Terra is supported by platforms who currently have 40 million combined users.
The platforms that are supporting the creation of the stablecoin boasts of over $25 billion annual transaction volume, these platforms include Woowa brothers, Carousell, Qoo10, Pomelo, and Tiki.
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The stablecoin was created by Daniel Shin who is also the founder of South Korea-based TMON. Terra reports being backed by Luna network which thrives on the transaction commissions it pays to its token holders.
Shin stated that he believes that the introduction of a faster, cheap and secure way for making transactions will transform the e-commerce landscape. He added that Terra is privileged to be partnered by well-known brands and the beta-testing of the stablecoin will hold in the fourth quarter of the year.
Shin went further to explain that the application of Terra will not limit to e-commerce as there are plans to introduce it as a universal financial product.
In another comment made by the Head of Binance Labs Ella Zhang, she commended shin’s commitment to the project. Zhang added that the Terra project is different from existing stablecoins projects. As it is one of the few price-stable protocols with strong and efficient go-to-market strategy and application.
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How does Terra work?
The terra protocol works on a two token system. The two tokens are Terra and Luna. The Luna tokens will act as a collateral on the platform. The presale of the Luna token will build up the reserve of the network and stabilize its prize against fiat.
On the other hand, the terra token will be the day-to-day payment method after the official launch of the protocol. However, the future supply of terra token will depend on its demand. Holders of the Luna token will be rewarding with a share of the transaction commission made on the network.