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Yet another stablecoin is attracting large investors.
Announced Tuesday, the founder behind a $ 1.4 billion unicorn called TMON is revealing that he has collected a $ 32 million seed to build a stablecoin called Earth. But while a number of startups have deployed stablecoins – cryptocurrencies designed to track the price of another resource, they usually value fiat – Terra has a notable addition: an existing user base.
Created by Korean entrepreneurs Danial Shin, who founded and presides TMON, one of the best e-commerce sites in South Korea, the Terra project is starting with a significant number of partners that already reach 40 million customers . These partners, who will form the Terra Alliance together, a group of e-commerce sites that are interested in incorporating the stablecoin into their business, include Woowa Brothers, Qoo10, Carousell, Pomelo and TIKI.
According to a project spokesman, those companies, combined, absorb 25 billion dollars in sales.
"We have combined all the e-commerce platforms in Asia that are not called Alibaba or Amazon to push the Earth into the hands of many people," Shin told CoinDesk.
It's no wonder if the round includes some major cryptic investors, including Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP, Binance and others that have not been disclosed.
"We are delighted to support Terra, which stands out from most other blockchain projects with its immediate and consolidated launch strategy," said Polychain's Karthik Raju in a statement.
Echoing this, Ella Zhang, head of Binance Labs, said in a statement:
"While we see many stablecoins coming out, the Earth journey is particularly significant as they are planning one of the few stable protocols at the price with an already existing, functioning and strong market strategy and use. "
This use, according to Shin, is in acting as an economic digital payment system, which is red with credit cards.
He told CoinDesk that a significant portion of TMON's annual losses takes the form of credit card fees. And it is sure that other dealers experience the same.
That said, if companies like yours can drastically reduce transaction fees, they believe they have a better chance against the industry giants.
For the new business alliance, "the commitment is really that they will work together on a more efficient form of payment, obviously using blockchain technology," he continued.
A two-token system
To do this, the Earth protocol uses two tokens: earth and moon.
Investors in the seed group have purchased tokens from a pool of 400 million moon tokens (a fixed supply of a billion moon tokens will be created)
These moon counters function as collateral on the network. Their sale will provide an initial reserve that will help stabilize the price compared to Fiat, just as Tether does. The other token, land, will act as a daily payment method that consumers will use when the protocol is activated. It will be issued according to need based on the application.
So every time a transaction takes place on the network, a small commission will be paid to the owners of Luna.
Shin told CoinDesk:
"Luna is essentially a decentralized Equity similar to Visa and Mastercard."
He continued: "What we have learned by looking at the prices of Visa and Mastercard shares every year is very fluid. . "
Very similar to other stablecoin projects, oracles on the network will monitor demand and supply As land use grows, it will algorithmically emit new tokens.
The advantage for consumers and e-commerce merchants will be that these new issues will be used to offer discounts to people who use cryptographic token. So, for example, if the protocol has issued a new land lot, merchants may be able to get a 10% discount on purchases made with the token, or until the new supply is exhausted.
"As we integrate with multiple e-commerce partners, we are able to distribute that money to e-commerce companies and their consumers in the form of bribes and discounts," said Shin.
In this way, the project seems focused on one of the earliest tormented bitcoin use cases, as a cheaper digital payment line than the incumbents.
What Terra still needs, though, is a guest blockchain – a big question for many projects today. The protocol will be executed on one of the existing projects; Shin said either ethereum, EOS, Orbs, the messenger giant Kakao Ground X or Upbit's next project, one of Korea's exchanges.
But Shin does not seem gradual from this, telling CoinDesk that even though the focus will be on the Asian market first, it is only the beginning of the project's aspirations.
"We thought of implementing design in the United States where the encrypted adoption is very low, it does not make much sense," said Shin, adding: "I think the ambition is global."
Image via Tmon Foursquare
The leader in blockchain news, CoinDesk is a reference point that is committed to the highest journalistic standards and adheres to a strict set of editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in criptovalute and blockchain startups.
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