Altcoins

Everything you need to know about Terra Luna’s latest predicament

The cryptocurrency market is facing one of the worst runs since 2020, where all major cryptocurrencies and stablecoins or meme coins are tumbling down. However, one of the most shocking falls that the crypto industry has ever witnessed is the downfall of Terra Luna. According to the recent stats, as per CoinMarketCap data, LUNA has crashed over 85 percent and is currently selling at $0.0002136 after reaching $99.24 earlier this month. Before we understand the reasons behind this crash, let’s first understand LUNA. 

What is LUNA?

Terra is a blockchain protocol that utilizes fiat-pegged stablecoins to power price-stable global payments systems. LUNA is the native token of Terra Lua and is used to stabilize the price of the protocol’s stablecoins. LUNA holders gain voting rights making the token a governance token. 

While LUNA is the native token of the Terra Luna blockchain network, its most famous stablecoin, UST, is highly dependent on the governance token. To create UST, the user must burn LUNA tokens. So, for instance, earlier, you could trade one LUNA token for 85 UST when LUNA was worth $85. However, the entire dynamics of the tokens changed as now UST is worth around 44 cents due to several reasons which caused LUNA’s price overall drop. 

Reason Behind this Drop 

Earlier this weekend, over $2 billion worth of UST tokens were unstaked, and hundreds of millions of them were immediately sold. Such a huge sell pushed the price of the stablecoin down to 91 cents, and traders trying to take advantage of arbitrage exchanged 90 cents worth of UST for $1 worth of LUNA. However, there was a speed bump as only $100 million worth of UST can be burned in a single day. 

These mechanics caused a significant shift in the UST and LUNA’s price, further fueled by the low market conditions. Stablecoins are expected to remain stable and not fluctuate too far from their pegged price. This major change is now raising questions about the stability of stablecoins. 

A New Stablecoin in town – USDD by Tron

Stablecoins have become growingly popular because of their resistance to crypto volatility. Several centralized institutions and MNCs are more friendly towards stablecoins than mainstream cryptocurrencies and aim to integrate them with their traditional financial services. 

Considering this widespread adoption, the number of stablecoins in the market has increased tremendously. Currently, stablecoins represent 10% of the total crypto market capitalization. In this already crowded market, a new player has entered the town called USDD, which is backed by Tron’s native token, TRX. 

USDD – Tron Network

Tron is a decentralized project and the world’s fastest-growing public chain that boasts over 88 million accounts and 3 billion transactions. The founder of Tron network, Justin Sun, recently announced that the project would launch a decentralized algo-stablecoin called USDD. This decision was outlined as an open letter to Tron DAO, and according to the reports, the launch will take place on May 5. 

“When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD.”

Sun

USDD will be backed by TRX, the native token of Tron that gained 8.7% after the announcement. Moreover, the token will represent an evolution from the previous Tether stablecoin that utilizes Omni and Tron networks, including Ethereum. 

It would be interesting to note how USDD will mark its position in the crowded and competitive stablecoin market where UST and Terra have already established a leadership position. However, USDD being an algo-stablecoin, already has an advantage. In algo-stablecoins, the supply and demand of the token are utilized to maintain the price stability of the token. 

Moreover, Tron DAO will manage the supply of the stablecoin by administering a reserve with a 30% interest rate. These attributes make USDD a strong contender prior to the launch. 

Payment Giant Paypal Plans to Launch its Stablecoin

Since opening crypto trading to all customers in 2020, PayPal has been developing its cryptocurrency operations. It allowed US users to pay with cryptocurrencies and raised the amount of cryptocurrency it could buy last year. The payment firm has more plans for its crypto enthusiasts.

PayPal Holdings Inc. is considering launching its own stablecoin as part of its crypto drive. The virtual payment giant confirmed the news after proof of the step was found in its iPhone app. Steve Moser, a developer, discovered hidden code and graphics for a “PayPal Coin” in the iPhone app and revealed it to Bloomberg. 

According to reports, the PayPal Coin will be supported by the US dollar. Furthermore,  It could also have the PayPal emblem with two horizontal slashes across it; however, that could alter once the coin is released, assuming it does. According to a representative for Paypal’s digital currencies division, Jose Fernandez da Ponte, the information Moser discovered in the software were remnants from an internal hackathon.

Jose said in a statement to Bloomberg, “We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators,”

Paypal’s Crypto Ambition

In recent months, PayPal has stepped up its cryptocurrency efforts, introducing new facilities for buying and holding digital tokens, as well as the option to pay for transactions with them.

Jose recently stated that the company has yet to see a stablecoin designed just for payments. According to Jose, a stablecoin would need to allow payments at scale and be secure for PayPal to utilize.

PayPal isn’t the first international corporation to consider developing its own cryptocurrency.  Other giants such as Facebook, now Meta, and Visa have made similar moves.  Diem is a stablecoin developed by Meta Platforms Inc. Meanwhile, Visa Inc. has permitted a stablecoin secured by the US dollar to complete a payment with the network.

Stablecoins are fiat-backed cryptocurrencies that are often more durable than their unregulated counterparts. Meta also has significant crypto intentions and was planning to introduce a digital wallet that would support its own stablecoin, Diem. However, due to regulatory opposition, it decided to offer the cryptocurrency wallet Novi instead, which uses the Pax Dollar stablecoin.

Paypal to be a key player

PayPal was one of the original Web 1.0 companies. PayPal was controlled for many years by eBay, another veteran of e-commerce until it was separated in 2015. PayPal had a market capitalization of $1.5 billion about 20 years ago and now has a market capitalization of nearly $240 billion, demonstrating the global expansion in online purchases during that time.

PayPal CEO Dan Shulman said the business aspires to be the world’s next financial mega app, combining digital payments, eCommerce, trading, savings, management, and crypto operations into a single platform. Furthermore,  PayPal has been one of the greatest beneficiaries during the COVID-19 pandemic, as more and more people are opting for digital payments rather than using credit cards or cash. The company expects its userbase to double by 2025.

Introducing MahaChain, The DAO-Powered Blockchain by MahaDAO

MahaDAO, a decentralized autonomous organization, recently announced the launch of MahaChain, a revolutionary blockchain with built-in robust economic policies powered by smart contracts.

Bearing a resemblance with policies issued by a Central Bank, MahaChain implements different economic policies, such as quantitative easing, buybacks, interest rates to promote and boost the growth of dApps within the MahaChain ecosystem in a decentralized environment.

MahaDAO is a name synonymous with decentralization that takes a community-centered approach to pave the way for a new and better financial world with a fair, non-concentrated reserve of wealth. The launch of MahaChain will further the vision of MahaDAO and create a scalable, secure, and decentralized blockchain network.

MahaChain – The DAO-Powered Blockchain with built-in Economic Policies

The MahaChain is set for launch in the first quarter of 2022, with the testnet launch set in January 2021. Moreover, the economic policies will be coded into MahaChain in early 2022 in a whitepaper written jointly by Steven Enamakel (MahaDAO Creator) and Suhas Kulkarni (Economist). The introduction of economic policies will help MahaDAO effectively create and govern a fully decentralized economy.

MahaChain is an EVM-fork that uses a Proof-of-Stake consensus algorithm initially conceptualized by the POSDAO. Moreover, the blockchain will initially support 100 validator nodes elected through a decentralized voting mechanism involving the $MAHA token holders. With this dual-token design, the role of $MAHA will increase further as a Proof-of-Stake token used to govern and secure $ARTH.

Following the launch of MahaChain, MahaDAO will open its gate to the world of DeFi, NFTm Gaming, and dApp builders. Users can now deploy their dApps on MahaChain and receive MAHA tokens as economic rewards. However, the primary focus of the blockchain remains on the high inflation countries like Venezuela, Argentina, Turkey, etc. Residents of these countries can interact with an inflation-proof stable currency and simultaneously invest and interact with projects built on MahaChain.

MahaChain is unique and takes a different approach than other layer-1 EVM chains in the industry. It will support interoperability on the day zero itself with several bridgers to help users interact with dApps and tap onto the liquidity on the other blockchains such as Ethereum, Polygon, BSC Chain, from MahaChain.

About MahaDAO

MahaDAO is a community-powered DAO that aims to empower the world by preserving its purchasing power using ARTH, the world’s first Valuecoin. $ARTH tackles US Dollar inflation and is resistant to the financial crisis and low volatility.

Another token, the $MAHA token, plays a crucial role in the ecosystem as it is the governance token for ARTH valuecoin. It makes sure that the system remains decentralized and free from manipulation by any single entity. To learn more about MahaDAO, visit https://mahadao.com/.

Social Links 

Website | App | Telegram Chat | TG ANN | Twitter | Discord | Reddit | Github

Contacts

Creator

  • Steven Enamakel
  • MahaDao
  • Info@mahadao.com

BiLira will now be featured on BTSE spot listing exchange

The crypto stablecoin from the land of Turkey, BiLira has witnessed some good news. BTSE the much demanded over-the-counter Bitcoin and Altcoin futures exchange extended their support for BiLira’s Turkish stable coin called TYRB. With the new development, TRYB can be traded against Tether on the spot markets at the exchange.

Turkey is yet to realize the potential of the cryptocurrency wave and it can be safely said that it is at the nascent stage. The CEO of BTSE has stated that this alliance will go a long way in the upliftment of the trade and raising awareness among people. The new partnership will help users to experience instant settlement along with the convenience of lower fees through remittances.

The entry into the Turkish market took place early this year and ever since it has managed to grow the community further. Ever since there has also been an increased demand for onboarding options through the stable coin. It also coins 19 among the pairings which BTSE does.

The chief officer at BiLira is also hopeful about the outcome of this step. Apart from being a leading center for the blockchain industry in the world map, it will also encourage more and the learning curve can be sharper. Not that cryptos are any new to the Turkish traders because earlier on it was used as an asset to hedge risk. The mobile penetration here is a good 90% which means that a considerable proportion of the population is well-versed with mobile banking and other apps.

Turkey has a strong trading history but the aim of the coin is not to create any speculation. The crypto enterprise is looking at serious ownerships and wants to create a platform that has some genuine takers and use. The system so set will allow people to buy up to 100,00 euros per month without paying even one lira as commission. The no-commission prospect may harm the company but it is a great option for long term prospects. It is an excellent proposition for the migrants who can now send money back home with just a click on their device!

Image Source – Wibestbroker