Crypto project @terra_money ( $LUNA ) has surged 50% in the last week to hit a new all-time high even with bitcoin down 5%
Its algorithmically-backed stablecoin $UST has become the largest of its kind and keeps picking up Web3 adoption as THE DeFi dollar
Why that is huge ⬇️ 1/X
Its algorithmically-backed stablecoin $UST has become the largest of its kind and keeps picking up Web3 adoption as THE DeFi dollar
Why that is huge ⬇️ 1/X
A "DeFi dollar" has been the elusive holy grail of crypto. How do you make a stablecoin stay at $1?
The largest stablecoins (Tether and USDC) are backed by cash. But what if regulators seize those accounts? What if a company lies about its holdings? 2/X
The largest stablecoins (Tether and USDC) are backed by cash. But what if regulators seize those accounts? What if a company lies about its holdings? 2/X
Terra's simple starting point is that its stablecoin is not backed by cash or assets at all. Instead it's backed by its own cryptocurrency.
People can convert $LUNA into $UST and vice-versa. While Luna's price fluctuates, UST remains priced at $1 3/X
youtu.be
People can convert $LUNA into $UST and vice-versa. While Luna's price fluctuates, UST remains priced at $1 3/X
youtu.be
A big change prompted the latest 50% rally:
Before, any time someone converted $LUNA into UST, a portion of $LUNA would stack up in a community pool
Now, after Terra's Columbus-5 upgrade, $LUNA is just being burned 4/X
Before, any time someone converted $LUNA into UST, a portion of $LUNA would stack up in a community pool
Now, after Terra's Columbus-5 upgrade, $LUNA is just being burned 4/X
That's made $LUNA more deflationary and more likely to rise in price so-long as more people adopt UST as their stablecoin of choice. That has rapidly become the case in 2021.
YTD % growth in stablecoin market cap:
#Tether: 269%
$USDC: 846%
$UST: 4,154%
5/X
YTD % growth in stablecoin market cap:
#Tether: 269%
$USDC: 846%
$UST: 4,154%
5/X
That's the simplest case for understanding what @terra_money is solving (it overlooks that it also carries pegs to other currencies beyond just the US Dollar, which is also huge for global adoption.)
It also doesn't take into account all the DeFi building taking place on it 6/X
It also doesn't take into account all the DeFi building taking place on it 6/X
Overall, as Terra founder @stablekwon has told me, "a decentralized economy needs decentralized money."
So far, @terra_money has done the most in 2021 to deliver on that prospect 7/X
news.yahoo.com
So far, @terra_money has done the most in 2021 to deliver on that prospect 7/X
news.yahoo.com
People who bought $LUNA the first time I booked Do to come on my show in July would be up 800%
People who bought in February when I asked
@novogratz about Galaxy Digital's $25 million investment in LUNA would be up 1,000%
8/X
People who bought in February when I asked
@novogratz about Galaxy Digital's $25 million investment in LUNA would be up 1,000%
8/X
In the end, the #crypto projects that win out will be the ones solving real problems. Follow for more insights and explainers on the best ones to watch!
9/9
9/9
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