Here are some of the best reasons to see LUNA as an excellent long-term investment:
- Decentralized and permissionless design that seeks to provide a real solution to the digital economy.
- Competitive programmable payments.
- Can provide a valuable function to international business and remittance-basis workers.
- Stablecoin development and dApp design are facilitated on the network.
- Interoperability is key to the network, running on multiple chains, going beyond the native Cosmos blockchain. Terra also works with Ethereum and Solana, with other blockchain functionality in the development stage.
- Development is a keyword for Terra, which is very much in the earlier stages of their journey, with many ambitious plans for the network.
- Programmers have many opportunities to develop the code through Rust, Go, or AssemblyScript, or by using the network oracles to improve dApps.
- Terra (LUNA) is designed to be a transparent ecosystem that simplifies traditional payment processes — many cryptocurrency projects aim to solve this problem, but Terra is further ahead than many rivals.
What is Terra (LUNA)?
Terra is an advanced third-generation Blockchain protocol developed to support stable payments and open financial infrastructure. A group of stablecoins is pegged to various fiat currencies, such as TerraUSD (TUSD), supporting the protocol and allowing Terra to act as a digital central bank. Key to the whole blockchain is the LUNA token, which provides algorithmic stability as one of its core functions.
Part of the design is also aimed at enabling less complicated and expensive payments from one party to another, solving the issues that credit card and payment gateway users face. Their solutions will help merchants and consumers, making transactions cheaper on both sides of any deal. Long term, the ecosystem is expected to do even more than that.
While the project has caught attention in the US and Europe, primarily through the attractive interest rates offered on stablecoins, it is predominantly in Asia, where Terra thrives. For example, over two million users have come through their partnership with South Korea’s CHAI payment platform.
As well as providing price stability, LUNA is used for staking to secure the network and facilitate governance. It is the spine of the Terra network, and without it, none of their great technological offerings would be possible!
Where to buy LUNA in the US?
Where to buy LUNA in Europe?
European Traders have a wider selection of exchanges to trade on:
- DigiFinex – LUNA/USDT
- OKEx – LUNA/USDT & LUNA/BTC
- Bithumb Global – LUNA/USDT
- Bittrex Global – LUNA/USDT & LUNA/BTC
- Bitfinex – LUNA/UST & LUNA/USD
What does it mean to ‘secure the network’?
The value in the network needs to be locked in, which is done by encouraging users to stake specific cryptocurrencies in exchange for financial rewards through a Proof of Stake (PoS) algorithm. The users risk that the LUNA token might drop in price, but many see the project’s long-term viability as a good investment that offers passive income potential. All of the rewards given to LUNA holders come from the transaction fees, 100% paid to holders rather than kept by the project.
How Terra (LUNA) Works
Terra is built on the Cosmos network (the same as Binance Coin – BNB and Crypto.com’s CRO token) and is powered by a Tendermint consensus. This type of consensus requires a set of validators to run full nodes and commit new blocks to the blockchain in exchange for financial rewards.
History of Terra
Terraform Labs was started in January 2018 by Do Kwon and Daniel Shin. They raised $32m in backing from a quality list of investors such as Polychain Capital, Pantera Capital, and Coinbase Ventures. Part of the investment funds was used to build Terra and LUNA on the Cosmos network, with the former designed to settle payment transactions in just six seconds, making it globally competitive.
The protocol, which launched in April 2019, already handles billions of US Dollars every month, mostly in Asian countries, thanks to partnerships with CHAI (South Korea) and MemePay (Mongolia). Thanks to these partnerships, Terra offers stablecoins pegged to the US Dollar, Mongolian Tugrik, and South Korean Won.
LUNA was made available in a sale in the summer of 2018, raising $32m through a private token sale that was held through the investment arms of Binance, OKEx, and Huobi. 10% of the minted tokens were kept for Terraform Labs, 20% for employees and project contributors, 20% for the Terra Alliance, 20% for price stability reserves, 26% for backers, and 4% for genesis liquidity.