The already crowded crypto ecosystem welcomes another stablecoin: Terra.
Terra announced today that an initial $32 million was raised in its seed funding round which included Binance Labs, Okex, Huobi Capital and Dunamu & Partners (the investment firm of Upbit operator).
Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP Capital, and Translink Capital also took part in the seed round. The capital will serve for the creation of a stablecoin that can be used as a payment solution.
There are a lot of new stablecoins recently which resulted from fears about the dependability of Tether (USDT). Examples include the Stronghold USD and Stasis EUR. Terra will be focusing on eCommerce integration. Daniel Shin, its co-founder, is the founder and Chairman of TMON, a South Korean e-commerce platform. The Terra Alliance comprises at least fifteen companies, with a total of $25 billion in annual transaction volume and 40 million customers that include Woowa Brothers, Qoo10, Carousell, Pomelo, and Tiki).
Luna, an asset deriving its values from transaction fees collected on the network, backs up the stablecoin. “Much like the moon stabilizes the earth’s rotation, Luna is Terra’s eternal guardian of stability.”
“From experience, I know that faster, more secure transactions at a fraction of today’s fees could be a game-changer for many e-commerce platforms. We are excited to be working with great partners and look forward to beta-testing Terra’s payment system in Q4 of this year,” said Shin. “However, our vision goes beyond positioning Terra as a trusted and secure medium of exchange for e-commerce. The potential application of Terra is immense, and we foresee it being used for all types and forms of financial products like loans and insurance.”
Ella Zhang, head of Binance Labs, commented and said: “While we see many stablecoins coming out, Terra’s journey is especially meaningful as they are designing one of the few price-stable protocols with existing, working, and strong go-to-market strategy and usage. We are constantly impressed by the founders’ leadership and earnest commitment to the business, and excited to support the team.”