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What is Terra (LUNA)?
This is a blockchain protocol that makes use of stable coins to create price balance in global payment networks. As a matter of fact, they say that they combine fiat currencies and price stability by enabling BTC (Bitcoin), thereby providing cheap settlements. In the world of cryptocurrency, volatility is something we discuss quite often. It’s one of the major reasons investors are scared of possessing cryptocurrencies. The aim of Terra is to change that by making use of fiat-pegged stable coins. They’d maintain a “1 stable coin to 1 fiat” peg via a proprietary algorithm that adjusts the supply of stable coins automatically according to demand. That’s feasible because of their token called LUNA. This token provides price stability, liquidity and one can easily swap it for any other stable coin while having profitable exchange rates.
Investing in Terra (LUNA)
The blockchain of Terra was able to gather lots of attention because of LUNA that recently busted in prices. It was able to increase by more than 2000 percent in the last couple of months. Fundamentally, this company partnered with lots of payment platforms, majorly in the Asia-Pacific area. In July 2019, Terra made an announcement of its partnership with a mobile payments application based in South Korea, Chai. The Terra blockchain network is used to process every purchase made with the use of the app on e-commerce platforms.
Looking at it from a technical point, LUNA had a huge surge in its price, which went from $0.9 in Jan 2021 to $22.33 in March 2021. This is a price increase that is in tandem with the most recent NFT hype that also made lots of users interested. Looking at the present market cap of $7,300,000,000, there’s surely room to grow more.
Where to Purchase LUNA Cryptocurrency?
We’ve got lots of exchanges where one can trade the LUNA token. When buying crypto from an exchange, it’s always necessary to choose one that’s reputable. We would recommend you buy LUNA from Binance because it’s very easy to do that. On Binance, you can sell, buy, or hold your tokens. You can also send your tokens to a private wallet if needed.
How does LUNA Cryptocurrency work?
Presently on the blockchain of Terra, there are 4 tradable tokens. LUNA offers rights to stake and also be used in the stability mechanism of the protocol. These 4 stable coins include:
- UST (TerraUSD), which is pegged to the (USD) United States Dollar
- KRT (TerraKRW), which is pegged to the KRW (South Korean Won)
- MNT (TerraMNT), which is pegged to the (MNT) Mongolian Tugrik
- SDT (TerraSDR), which is pegged to the IMF (International Monetary Fund) SDR unit of account.
SDR being in the stable coins it offers is a strong must-have because it’s the representation of an extremely stable currency. They plan to therefore include extra currencies as time passes like Yen, Yuan, and Euro pegged tokens. Those who stake Terra can vote to recommend the new currencies and also disprove the Terra currencies that currently exist. Since more currencies have been added and its cross-border expansion, Terra seems to be an excellent opportunity that has a solid whitepaper.