If I was to say what TERRA is, then I am going to use the word “Beast” to define them. Luna can be called a financial institution of the crypto world. It has stable coins as compared to fiat in real life. The customers can earn rewards on it. Their token LUNA is the emblem what the company does.
TERRA was launched in 2018 and LUNA was launched in 2019. Luna is a governance token that supports the whole network. From the stable coins to the processing of transactions, LUNA is the back for the whole system.
Terra has a number of stable coins. Stable Coins are the coins that have their values pegged to the real life and commonly used asset or currency. Most famous of these is the UST, a coin that has its value pinged to US Dollar. These stable coins are very popular and in high use because since their values don’t fluctuate as the other coins. These coins can be used to operate as stable assets.
How are Terra’s stable coins different than others?
Terra stable coins are very different to the other coins. Most famous stable coin is Tether, an off chain collateralized coin. That means it should be backed by the fiat currency. This is a reason that the coin is always the subject of controversy whether they have the reserves or not. Yesterday (9th August) Tether had released a statement that their coins were backed by fiat currency, but a lot of speculations are there about whether the statement was true or not. On the other hand, TERRA stable coins are backed by Luna itself. The algorithm works in such a way that if the price rises up above $1, it would use Luna to mint more UST, and if the other side triggers, UST would be swapped for Luna. This algorithm removes the need for fiat currency.
How secure is Terra (LUNA)?
The network is secured by Proof of Stake Consensus, where the holders’ stake to validate transactions and receive rewards on the amount of Luna they hold. They have been audited by Certik in 2019 and had positive results. The network has recently collaborated with Solana, Binance Smart Chain, and Ethereum with the launch of Wormhole. A cross-chain messaging protocol.
Terra (LUNA) and the current market
Luna has a total of 413,099,515 coins in circulation. The coin made its ATH on 21st March 2021, with a price of $21.98. At the time of writing the token is currently being traded at a price of $13.97. The price has had a change of 3.88% in the last 24 hours and a 16.76% rise in a week. With new positive news released, we can be sure that the fundamentals are totally in their favor. Luna and other stable coins are available on all leading block chain networks and exchanges and the team is working hard to bring them on even more. The coin is currently ranked # 26 on CoinMarketCap
Is Terra (LUNA) coin a good investment?
With the world moving towards decentralization, we can hope to see Terra to being used as a medium of exchange with on a small portion of the fee. We can also hope to see many new dApps being built to create new stable economics. In the near future I am hoping to see them rollout new projects that is going to bring a change in the community itself. LUNA is definitely going to bring more usability to the whole market.
