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Is Terra (LUNA) Here to Stay?

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Is Terra (LUNA) Here to Stay?

Wondering if Terra (LUNA) is dead? You can short the token on FTX, or buy it on Gemini!

One of the major use cases for cryptocurrency are stablecoins. These tokens are pegged to an underlying asset, such as USD. Terra is a decentralized global payment system that specializes in stablecoin transactions. While stablecoins could be extremely relevant in the future, many wonder if Terra can keep up with the competition. 

Is Terra (LUNA) Here to Stay or Just a Fad?

Terra is a blockchain protocol that specializes in the use of fiat-pegged stablecoins to facilitate transactions on the blockchain. The team hopes that by using fiat-pegged assets, widespread adoption is more likely as there is far less volatility than with traditional cryptocurrencies. 

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Terra is powered by LUNA. Surprisingly, LUNA is not a stablecoin. In fact, it has appreciated nearly 500% in the past year, that is, until May 2022 when LUNA crashed over 90%. This is due to the depegging of UST to $1, which caused tremendous problems for the protocol. 

LUNA is used to back UST, which is Terra’s native stablecoin. To do this, LUNA is burned when UST is in high demand, using a balancing algorithm that always keeps UST extremely close to $1.00. Unfortunately, this system didn’t hold up under bearish market conditions, and now UST is trading for far less than $1. LUNA can also be used for staking, which provides liquidity to the protocol and is also used to keep the price of UST stable.

Due to Terra Luna being tied to the backing of UST, the token may not exist if UST can’t regain its peg. From the beginning of May to the time of writing (less than 2 weeks later) LUNA has decreased in price by over 95%.

Terra (LUNA) History

Terra was founded in January 2018 by Daniel Shin and Do Kwon, who are software engineers and entrepreneurs by trade. They saw an opportunity to bring stablecoins to the masses and drive crypto adoption. 

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Terra has established multiple partnerships with primarily Asian companies. One such initiative was the Terra Alliance, which is a group of businesses that push for the adoption of stablecoin technology and use of the Terra protocol.

LUNA began trading in 2018 through an initial coin offering (ICO) and raised $32 million. Since then, the market capitalization grew to over $40 billion but is now at less than half a billion due to the UST crisis.

Pros and Cons of Terra (LUNA)

Terra has pros and cons. It operates in a niche market and offers low transaction fees. Additionally, governments around the world have experimented with stablecoins, and Terra could help lead this charge. For cons, Terra faces stiff competition that can impact its liquidity and user base.

One major use case for crypto is stablecoins in government. In 2021, the French government conducted research on the use of stablecoins in their bond market and saw positive results. Since Terra operates in this market, it could be of use if more governments begin to experiment or implement stablecoin technologies. 

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Terra operates on the Cosmos network, which functions as both a pro and con. It is a good thing in that it allows for fast and cheap transactions. However, it also means that the project cannot interact with other chains, such as Ethereum. This factor can limit use cases and the overall trading volume of stablecoins on its network. 

As of late, the largest con of Terra Luna is its inadequate stablecoin backing. Its stablecoin was algorithmically stabilized, as opposed to being 100% collateralized. This, paired with bearish market conditions and under collateralization, has caused both UST and LUNA to plummet in price. 

Terra (LUNA) Competition

Terra faces daunting competition, primarily from Ethereum. Ethereum already has multiple stablecoins on its network. Specifically, USD Coin (USDC) is the most popular and has a market capitalization of more than three times that of Terra’s stablecoin (UST). Terra specializes in stablecoin transactions, but Ethereum has a much more popular stablecoin.

However, this specialization may benefit Terra in the long run. If stablecoins begin to obtain widespread adoption, then Terra will look more attractive to users as they are more specialized. 

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How to Make Money With Terra (LUNA)

1 Minute Review

Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.

Best For

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  • Traders who want access to a secure, low-cost cryptocurrency exchange
  • Passive investors who want to earn interest on their balance without frequent trading
  • Mobile investors who prefer to handle all their crypto needs via their phone or tablet

Pros

  • Low fees
  • High security
  • One-stop shop for all your crypto needs (wallet, trading, spending, and more)
  • Lots of ways to earn interest, rewards, and rebates

Cons

  • Low privacy
  • Customer service response time could be improved
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As with any investment, the simplest way to profit is to buy low and sell high. However, it can be extremely difficult to time your trades in a way that allows you to do this consistently. Fortunately, there are multiple ways to earn LUNA through decentralized finance (DeFi) technology. 

First, you can earn interest on your LUNA position through exchanges. You can earn up to 6% APY on your LUNA position by staking it on the popular cryptocurrency exchange, Crypto.com.

Another way to earn passive income on your LUNA position is to stake it. In doing so, you will contribute to the network and its proof of stake (PoS) consensus model. You can accomplish this action through the Terra website and can generate steady returns.

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How to Buy Terra (LUNA)

1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to over 100 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

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Best For

  • New investors looking for a simple mobile and web app
  • Day traders looking to use technical analysis tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their cryptos

Pros

  • Easy and quick signups — can get started in as little as a 5 minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts

Cons

  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
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Since Terra is a relatively large protocol, it can be bought on a variety of prominent exchanges, such as Coinbase Global Inc. (NASDAQ: COIN), FTX, Voyager and Gemini. These exchanges are known for their ease of use, low fees and overall security.

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To open an account, register using an email and password. You will have to provide some basic personal information to verify your account. Then you can connect your bank account and begin trading.

Is Terra (LUNA) Here to Stay?

Terra is certainly an exciting project with a variety of real world applications that are already being explored. However, its future success is dependent on its competitors and the rate of stablecoin adoption. And with the UST depegging from $1, LUNA is in a crisis. Its token may not return to all-time highs ever again, and the token has lost credibility among investors. While there’s a chance Terra Luna is here to stay, it’s much less likely now that its stablecoin is anything but stable.

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analysis group

Report: The Metaverse Might Contribute $320 Billion To Latam’s GDP In The Next 10 Years

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Report: The Metaverse Might Contribute $320 Billion To Latam’s GDP In The Next 10 Years

A new report indicates that the metaverse might be a significant factor in the growth of economies in Latam and the world in the coming decade. The study, issued by Analysis Group, estimates that Latam might benefit from a surge of $320 billion or an approximate 5% of its GDP, in the next 10 years. This is the biggest percentage share of GDP of the regions in the study’s projection.

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Analysis Group’s Metaverse Report

The metaverse is becoming a subject of intense focus in crypto and business at large, and many companies are already projecting the impact that it might have in several countries and areas in the future. In a recent report titled “The Potential Global Economic Impact of the Metaverse” issued by international economic consulting firm Analysis Group, the opportunities that the emergence of the metaverse could open in the next ten years are examined, assuming “adoption begins in 2022.”.

In the document, the researchers compare the rise of the metaverse with mobile technologies and examine the growth as if this new technology were to evolve in a similar way. This industry was selected “because of similarities to the metaverse in the way it combined existing and nascent innovations to fundamentally alter global technological and economic landscapes.”

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Major Latam Growth and GDP Estimates

According to the report, the metaverse and its related activities have the potential of representing 5% of the GDP of Latam in the tenth year after adoption begins (2022), contributing $320 billion to the economies of the area. The report also projects that the growth in Latam will be the biggest percentage-wise, while the APAC region would have the biggest growth volume-wise, representing more than $1 trillion of its GDP.

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Globally, the study estimates that the metaverse will generate $3.01 trillion, becoming more than 2% of the GDP of the world ten years from now. Per the report, this growth will only happen if the sector reaches its expected potential, having “far-reaching applications, with the potential to transform a wide range of economic sectors such as education, health care, manufacturing, job training, communications, entertainment, and retail.”

Other companies have also predicted the possible impact of this new activity and the economic opportunity it will present for different industries in the future. Grayscale, one of the leading cryptocurrency asset managers, estimated that the metaverse might become a $1 trillion business opportunity in the future. Goldman Sachs also predicts the metaverse will be an $8 trillion opportunity. JPMorgan has stated that this $1 trillion market “will likely infiltrate every sector.”

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What do you think about Analysis Group’s metaverse report? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Ariva

Ariva Celebrates 1st Year Anniversary With Impressive Achievements In The Blockchain Industry

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Ariva Celebrates 1st Year Anniversary With Impressive Achievements In The Blockchain Industry

press release

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PRESS RELEASE. Ariva, a next-generation tourism & travel blockchain protocol, celebrated the first anniversary of its launch on May 25, 2022. This development marks an impressive milestone for the blockchain project that has taken the tourism sector by storm in recent months.

Ariva launches reward program to celebrate 1st anniversary

Ariva has announced a giveaway campaign to celebrate the first birthday that will reward users with different prizes. This includes a limited collection of its Arivaman NFT to 6 winners, $30 million ARV tokens to 30 participants and $6k BUSD to six winners.

Ariva has further revealed that participants will have to complete a series of events, including following Ariva on different social networks, voting on Coinmarketcap and filling out a reward form with their BSC address.

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Undoubtedly, one of Ariva’s most important birthday week events will be the launch of the alpha test of the Ariva Wonderland Metaverse project. In a surprise, the team announced that the test will be conducted in an open alpha test format and that a limited number of gamers from the committee will be selected for this unique experience.

Major achievements accomplished in 12 months

Ariva has achieved some noteworthy achievements since its launch due to its impressive concept and innovative products. It has an active community of more than 200,000 members on social media and is featured in 100+ tabloids globally.

Ariva has also enjoyed significant adoption of its token ARV with more than 220,000 holders. ARV has also been listed on 32+ exchanges and 10+ wallets showing the rapid growth of the utility token.

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Ariva has also hosted several events to foster the development and adoption of blockchain technology in the tourism industry. In recent months, it has also embarked on high profile partnerships with the World Tourism Forum Institute and Global Tourism Forum.

Ariva’s partner, the president of WTFi Bulut Bagci was also a keynote speaker at the FIS Dubai event in May 2022. Furthermore, Ariva has been able to embark on policy building with members of the European Parliament on how it can revolutionize the travel and tourism industry with blockchain technology.

A complete blockchain-based tourism ecosystem

As promised, the team also launched the Ariva.World crypto travel portal and Ariva.Finance payment gateway before his birthday. They also stated that the distribution of Ariva Pos Machines to hotels and travel agencies will begin in a short time.

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Merchants can also deploy Ariva.finance APIs on their stores to integrate crypto payment systems. Furthermore Ariva.Finance has been deployed into the first batch of Ariva POS machines that hotels and tourist centres have adopted. Ariva.World is a decentralized hub that enables tourists to connect with local and global tourism service providers.

Ariva recently launched Ariva Wonderland, a metaverse project that aims to introduce tourists to a world with limitless travel experiences.

More developments expected in the future

The Ariva team is not resting on their laurels and has partnered with Global Tourism Forum ahead of its leader’s summit set to take place in Washington DC on 24th June. It has also revealed plans to extend more features for the Ariva Wonderland metaverse and list ARV on more exchanges in the coming months.

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To learn by visiting the website https://ariva.digital/


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Argentinian Cryptocurrency Exchange Buenbit Announces Staff Layoffs

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Argentinian Cryptocurrency Exchange Buenbit Announces Staff Layoffs

Buenbit, an Argentinian cryptocurrency exchange, has announced a series of layoffs due to the downturn that traditional and crypto markets are currently facing. Buenbit’s co-founder and CEO, Federico Ogue, clarified that this move had nothing to do with the recent Terra ecosystem disaster and that from now on, the exchange would focus on keeping operations in countries where it already has an established presence.

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Buenbit Announces Layoffs

Buenbit, an Argentinian cryptocurrency exchange, has announced a change in its hiring strategy due to the recent downturn that the cryptocurrency and stock markets are facing. According to some reports, the company will be laying off almost half of its current workforce across the three countries where it operates, including some senior executives.

Federico Ogue, co-founder and CEO of the exchange, stated on social media that these changes were the consequence of the tech industry facing a review phase. Ogue stated:

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Given this new context, we decided to reduce our staff and pause our expansion plan to focus exclusively on operations in the countries where we are present today and maintain a self-sustaining and efficient structure.

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Furthermore, Ogue revealed that this move had nothing to do with the recent collapse of the Terra ecosystem, even though the exchange did offer Terra-related services as part of its investment portfolio. “It is a decision that we have been working on for months. It is an adjustment that is taking place throughout the startup industry,” he explained.

Expansion Plans Halted

This new strategy ends the expansion plans the company had revealed during its Series A financing round, which raised $11 million for this goal in July 2021. The company announced that its focus will be to maintain the same quality of operations in countries where it is already present.

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The company stated this was a proactive response to an upcoming problem, “in order to avoid, in the near future, the unnecessary exposure of the company to the dependence of raising a next round of investment, when the market numbers indicate that this is not the correct strategy to follow in the current context.”

Other exchanges have also announced changes in their hiring strategies due to the new direction of the global economic markets. Coinbase, a U.S.-based cryptocurrency exchange, recently noted it would slow down its hiring process to be in a better position during and after the current market downturn.

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What do you think about the layoffs announced by Buenbit? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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