Binance cryptocurrency exchange has become one of the investors in a terra stablecoin project. The start-up raised $32 million in the latest round which also attracted the likes of Polychain Capital, FBG Capital, Hashed, 1kx, Arrington XRP Capital and Kenetic Capital.
Terra proposes to use two coins simultaneously: Terra and Luna. The first one is set to become a means of payment while the second one will be used to stabilize the currency. Also, the small transaction fees will be paid out in Luna.
Terra Alliance was also formed as several South Korean electronic retail websites joined together: TMON, alongside Woowa Brothers, Carousell, TIKI, Pomelo and Qoo10. co-founder of the alliance and TMON founder Daniel Shin says: “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.”
WHY IS IT IMPORTANT?
1) Upon launch terra will be adopted by all the members of the alliance meaning a potential user base of around 40 million customers right from the get-go.
2) Terra is being backed to challenge the commercial hegemony of Amazon and Alibaba. Members of the alliance believe that transactions will become more modern and sophisticated. Discounts will be provided on goods purchased with terra.