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Coin Healthcheck: Terra (LUNA) -Breaking


Coin Healthcheck: Terra (LUNA)

About
(LUNA is a blockchain protocol that allows for the decentralization of algorithmic stablecoins. You can find a range of stablecoins hosted on this network that keep track of the fiat currency price.

This project was created in 2018 by South Korean Terraform Labs and is the second-largest blockchain in terms of total value locked (TVL).

Status of the Project
Terra blockchain aims at solving the issue of insufficient decentralization between the most prominent stablecoins currently on the marketplace. It is building a robust and continuously growing ecosystem to achieve its goal.

Terra is a Proof of-Stake (PoS), system.

Two main currencies make up the protocol: TerraUSD (UST) and LUNA.

The Terra’s native currency, the LUNA token, has multiple uses. By acting as collateral, it ensures stability and provides an incentive for validators. LUNA gives its holders voting and governance rights.

LUNA’s dynamic supply is 1 billion tokens. When this amount is reached, Terra protocol automatically generates new LUNA tokens.

Terra reinvests any profits earned from issuing currency to stimulate transactions and increase adoption.

More than 2.6 Million users have used the blockchain, with around 70K users active on a monthly base.

Terra charges transaction fees for each transfer. It can range from 0.1% to 1.1%.

Whitepaper:
Released April 2019, official whitepaper

Phase of Development:
Terra’s mainnet was officially launched in April 2019.

Terra’s most significant mainnet upgrade since its inception was Columbus-5, which went live in September 2021.

Terra offers stablecoins pegged to many of the world’s major fiat currencies, and also to the International Monetary Fund’s Special Drawing Rights basket of currencies.

Terra hosts 16 protocols on its network. This is a lower number than other blockchains.

Terra’s main DeFi Protocols are the Mirror Protocol, and the Anchor Protocol. The Mirror Protocol allows the creation of and use of synthetic assets, while Anchor provides incentivized yield services.

Terra supports cross-chain transactions with stablecoins between Terra, Ethereum and Binance Smart Chain.

Terra’s community voted in November 2021 to torch 89 Million LUNA tokens.

Roadmap:
As of writing, there is no official roadmap or plan for 2022.

Terra’s ecosystem will grow at least twice as fast in 2022 with many new projects.

Partnerships:
The project has partnerships with over 15 e-commerce companies, including mobile payment app ‘Chai,’ which also has MasterCard integration.

Terra currently boasts 13 investors: Binance Labs (NASDAQ:) Ventures; 1kx; Delphi Digital; Blockchain.com Ventures and Huobi Capital.

Fundraising:
The project’s Initial Coin Offering (ICO) was held from January to February 2019 for $0.800 per 1 LUNA, and raised $62 million.

Team:
Terraform Labs and Terraform Labs were co-founded by entrepreneurs Do Kwon, and Daniel Shin. The project’s CEO Do Kwon, a graduate of computer science at Stanford University, co-founded Anyfi Inc prior to his work with Terra, which specializes in peer-to-peer connectivity solutions using mesh networks. Do Kwon also has experience working for Microsoft (NASDAQ 🙂 and Apple (NASDAQ :).

Terraform Labs currently has more than 40 employees and is supported by venture capital firms like Pantera Capital, Polychain Capital, and Pantera Capital.

Community:
Twitter (NYSE): (288.1K), Reddit (24K), Telegram (24.9K), Telegram (30.1K), Discord (5K).

Regular communication without any unexplainable periods of inactivity.

Terra (LUNA), a project with positive sentiment on social media has been referred to as a solid one and could be a top 10 cryptocurrency by market capital.

These are the key metrics:
Maximum supply:1,000,000 LUNA

Circulating Supply: 358 677,378.89 LUNA

Market Cap$25 billion

Listings on exchanges:

Close to 100 crypto exchanges list this listing (the complete list can be found here).

Token allocation:

Over 4.3K unique addresses for holders on the Ethereum network.

The whales have 98% of Ethereum Meta tokens. They hold more than 1 percent of the circulating supply.

99 percent of wallets keep funds longer than one year.

Wallets:

Terra Wallet. Ledger. Trezor. Math Wallet. Trust Wallet.

Pricing:

All-time high (ATH) $102.63, December 2021

The All-time Low (ATL), $0.121798 March 2020

Verdict

  • Anchor Protocol offers staking yield and holds more than half the UST currently in circulation. It also offers almost 20% APY to stake it. Although this is a key reason why it’s so popular, if there were to be fewer users, then this could pose a major risk for UST and LUNA.
  • Terraform Labs currently is under investigation by SEC to determine if their tokens were not registered securities.
  • Demand for LUNA also increases the LUNA’s burn rate. As a result, the demand for LUNA increases and the popularity of LUNA decreases, so the availability of LUNA will also increase. This leads to increased prices. The demand market share for the UST stabilitycoin is predicted to increase in 2022.
  • Terra’s protocols allows cross-chain transactions, a particular functionality that the whole crypto space is increasingly moving towards. Terra’s stablecoin is capable of operating on multiple blockchains, meaning that it has a realistic chance of becoming a widely used stablecoin in the DeFi space.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.