Terra wins backing from Binance, Okex, Huobi, Upbit; raises $32 million to support its stablecoin project
A new stablecoin is to join the crypto sphere soon as it gets backing from major crypto exchanges such as Binance, Okex, Huobi and Upbit. The new fiat-pegged crypto known as Terra announced on Thursday that it has raised an initial $32 million in the seed funding round.
According to Bitcoin.com, the seed funding round included Binance Labs, Okex, Huobi Capital, and Dunamu & Partners (the investment firm of Upbit operator). Others who took part include Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP Capital and Translink Capital.
The capital raised by Terra is for creating a stablecoin that can be used as a payment solution. Reportedly, the stablecoin is being backed by Luna – an asset that derives its value from transaction fees collected on the network. Terra co-founder, Daniel Shin, who is also the founder and Chairman of TMON (an ecommerce platform) in South Korea said, “Much like the moon stabilizes the earth’s rotation, Luna is Terra’s eternal guardian of stability.”
A series of new stablecoins have come up recently and Terra is trying create a space for itself by concentrating on ecommerce integration. According to Shin, “From experience, I know that faster, more secure transactions at a fraction of today’s fees could be a game-changer for many ecommerce platforms. We are excited to be working with great partners and look forward to beta-testing Terra’s payment system in Q4 of this year.”
He further explained, “However, our vision goes beyond positioning Terra as a trusted and secure medium of exchange for ecommerce. 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.”
Head of Binance Labs, Ella Zhang, also commented, “While we see many stablecoins coming out, Terra’s journey is especially meaningful as they are designing one of the few price-stable protocols with existing, working, and strong go-to-market strategy and usage. We are constantly impressed by the founders’ leadership and earnest commitment to the business, and excited to support the team.”
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