Welcome to the New To Crypto podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you, coming at you from the training center in the lifestyle design studio. Here’s your host Crypto Travels Michael.
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Okay. Welcome to today’s show. Today, the show is two months old. So this show has been growing for the last two months. It’s now been heard in over 60 countries around the world. And if you’re just tuning in, I welcome you. And if you’ve been here the entire time, I welcome you as well. So let’s jump into today’s episode all about Terra Luna. Terra is a next generation blockchain payment network, and it uses stable coins and it’s powered by its own token called the Luna token. So Terraform Labs oversees the terret cryptocurrency project, and that project is based out of South Korea, and it was originally started in 2018. Terra is a protocol for creating cryptocurrencies with stable prices. So it’s native token Luna, Terra Luna has grown and the crypto exchange Gemini describes it best in my opinion. So here it is: Terra is a trustless programmable blockchain e commerce platform that offers Fiat pegged stable coins to provide more stability when conducting cross border payments. Terra relies on its utility in staking token Luna, as well as other stable coins that are pegged to many of the world’s top fiat currencies. By using stable coins, The Terra crypto ecosystem offers low fees, instant settlement and frictionless cross border exchange to power retail transactions. So the Terra Luna crypto payment solution and e-commerce payment network, Terra has built a next generation blockchain payment network.
Currently, the e-commerce market in Asia benefits from it. Terra helped build an e-commerce alliance with 15 different partners in the beginning that have a combined gross merchandise value of 25 billion US dollars, and the total amount of customers and their entire customer base is 45 million. Terra was built using Cosmos blockchain technology, it’s an end to end payment solution. by companies using terrorist technology they can potentially save millions of dollars per year. This is because transaction fees using terror is nothing compared to the traditional payment systems that merchants currently use and pay for, per transaction fees going as high as 3% and beyond. Terra offers something different. And this could be a game changer for the e-commerce industry. So as mentioned before, Terra was developed by Terraform Labs, and Terraform Labs is behind the startups cryptocurrencies and financial apps. See they have more than just one token. Some of the tokens they have is the Terra a US dollar token or UST, and it’s pegged to the US dollar by using an algorithm. Terra is a stable coin that is intended to reduce the volatility which cryptocurrencies basically are prone to.
Some stable coins like Tether are pegged to fiat currencies like the US dollar through cash and cash equivalents. But the Terra US dollar token is different in that it uses an algorithm and associated reserve token to mint new UST tokens, percentage of another digital token and reserve asset Luna is burned. If the demand for UST rises, with more people using the currency, more Luna will be automatically burned and then diverted to a community pool. This is designed to help stabilize the price within reason. So Luna directly benefits from the economic growth of the Terra economy and it also suffers from contractions of the terracoin. This was said by the Terraform labs CEO, Do Kwon. So each time someone buys something using UST that transaction generates a fee, and that fee is then distributed to people who own Luna tokens. This is kind of like the stock dividend idea. Let’s go over Tara and Luna basics, like an overview. So what it does Luna is a governance and staking token that fuels the whole Terra Network. It supports terrorist stable coins and payment processing systems. In the management team. The co-founders of the project are Daniel Shin and Do Kwon. Kwon is actually a computer scientist. And he has worked for Apple and Microsoft and Shin is basically an entrepreneur and he comes from the e commerce background. So they launched in 2018. And then they launched the Luna in 2019. Currently, as of today, the market cap is over $12 billion to be exact. It’s just over $12.6 billion in the places you can buy the token the Luna is currently on Kucoin, Binance, Huobi and some others you can see the entire list on Coinmarketcap.com to find out where to buy Terra Luna.
A list of some of Terra stable coins are the Terra US dollar, the UST, they have the Terra euro, the Terra Canadian dollar, the Terra Japanese yen, the Terra CNYT, they have the Terra GBPT, they also have the KRWT and the International Monetary fund’s Terra SDR. Stable coins are digital currencies that are pegged to conventional assets like dollars or gold, and they’ve really grown in popularity. So without getting too technical, stable coins, which have an algorithm tied to them use a pool of tokens controlled by smart contracts, which are small pieces of code embedded into the blockchain to maintain the price. So Luna is fundamental in keeping Terra’s stable coins steady and token holders can stake the coin so that they’re rewarded for absorbing the volatility. Token holders receive a percentage of transaction fees from the Terra payment network. And Terra has plans for the future.
Terraform Labs plans to use Terra’s blockchain and its associated cryptocurrencies, including one pegged to the Korean Won to create additional financial system independent of major banks and FinTech app makers.There’s already been significant growth in Korea, for example, where you can go into stores and buy things you can also buy coffee using the Chai payment app that’s built on the Terra blockchain. So I hope today has provided an overview for you about some information about Terra and Luna and the exciting things that they have going both now and for the future. So if you liked today’s episode, definitely subscribe. And like the podcast, show your support, and chime in here for the very next one. Until then, make it a great day.
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