The dichotomy between cryptocurrencies and legal currency is no longer the dominant concept. On the other hand, the weaknesses of a system can be eliminated by the qualities of the other. A great example of this idea is the concept of a stablecoin – a cryptocurrency that traces the price of another resource, usually legal currencies. A new player is about to enter the market while the leading Korean e-commerce company TMON has closed its seed funding round by collecting $ 32 million for its stablecoin Terra.
TMON, also known as Ticket Monster, is a unicorn startup that raised $ 1.4 billion in April 2017. At present, this company is one of the undisputed leaders in the Korean e-commerce market. The new TMON project is a stablecoin owner of Terra. The idea is not new: TrustToken, Reserve, Stronghold are just a few examples of stablecoins that have attracted influential investors. Although the realization of a stablecoin seems to be a fashionable choice, the Terra project foresees an essential difference. The new stablecoin comes with an existing user base.
The e-commerce market is known for its incredible choice, low prices and incredible competition. Giants like Alibaba or Amazon make it extremely difficult to survive in the business. But TMON is not afraid of influential companies as the company uses the Terra project to create the cryptographic based community. The Terra Alliance will bring together e-commerce companies that are willing to use the new stablecoin in their businesses. Even if the project is still in its initial phase, the total sales of the first alliance members already exceed $ 25 billion. The list of early supporters includes names such as Woowa Brothers, Qoo10, Carousell, Pomelo and TIKI.
The idea of the staticeco Terra was appreciated not only by the e-commerce market but by investors. The total of $ 32 million in funding has been reached due to the number of major cryptic investors. Capital of polynequin, capital FBG, Hashed, 1kx, kenetic capital, Arrington XRP, Binance Labs have invested in the Terra project. Binance Lab chief Ella Zhang commented on this round of seed funding: "While we see many stablecoin emerge, Terra's journey is particularly significant as they are designing one of the few price-stable protocols with existing, functioning and strong market strategy and use. "
The Earth project includes two different coins: earth and moon. Investors have obtained 40% of all the moon tokens that must be issued. This coin works as a guarantee on the network and stabilizes the price to keep it in a fiat currency. Moon token owners benefit from all transactions held on the network when they receive a transaction fee. The other token called land is the one to be used directly in everyday payments.
The two-token system allows all Terra Alliance members to reward users with discounts for cryptocurrency payments. The transition to cryptos is an important issue for e-commerce as it could replace credit cards. Credit cards are convenient for most customers, but retailers tend to lose significant amounts on credit card fees. The new blockchain-based economy powered by a less volatile stable token can become the perfect solution for e-commerce.