Terra, as a blockchain system, is seeking to create an ecosystem that is based and focused on the new generation of applications for decentralized finance on a fast blockchain with ease of mining altcoins pegged to significant fiat monies across the globe.
All +/- % changes are for a 24 hour window
## Terra’s History
The need to catalyze the general adoption of cryptocurrencies over a broader range and across many demographics through the creation of digital assets that are native and do have a stable price compared with leading fiat monies led to the creation of Terra’s coin, Luna, in January of 2018.
Terra was launched with the aid of what is called the Terra Alliance. It comprises 15 leading e-commerce firms across Asia that receive and carry out up to $25 billion worth of transactions annually, with about 45 million clients shared between them. This is in line with the reality that money technologies before Terra have mainly been successful because they were bootstrapped to massive platforms like Visa was with banks and Paypal was with eBay.
The plan of the entire project says that if it is well adapted and users engage it massively, the network will then be able to run a bootstrap on a blockchain network for payment to the extent it should be. It can then bring about more effective products and live projects through its structure.
Terra’s payment system takes away the complications attached to the payment value chain, which include bank processes and their gateways and credit cards. All are replaced with one blockchain layer.
## Its Biggest Claim to Fame
At the beginning of 2021, Luna’s total market capitalization was just $300 million, but investors’ continuous search for cheaper and easy-to-use alternatives to Bitcoin and Ethereum pushed them in the direction of newer altcoins like Luna.
By July of that year, Luna achieved its first-ever bullish move as its market capitalization soared to an unprecedented height of $2.6 billion. The coin had recorded a staggering 900% increase in its value.
By the 4th of December, at a time when other leading cryptocurrencies were experiencing high selloffs, it was Luna’s turn to gain some more. The coin hit an all-time high price of $75.56 and a market capitalization of $29.3 billion. Although it had a minor setback after seven days that saw it drop some 17%, the coin’s initial 32% increase was not competition for the 15% and 4% dips experienced by Bitcoin and Ethereum, respectively, at that time.
After it clinched the 10th position on the chart of all global coins, it was ahead of other competitors like Avax, Shib, and Doge.
## Luna’s Biggest Criticisms
In recent weeks, Luna hasn’t been performing impressively in the market. The coin reached a breakout point at $59.75 before it began to decline. The continued decline at a point saw the coin selloff at an alarming rate, to as low as $46 as at the end of January.
Looking at how a “head and shoulders” are developing on Luna’s price chart, analysts are saying the coin’s price may soon be as low as $25 in the weeks ahead. If that happens, it will amount to a 50% decline in its price within two weeks.
A “head and shoulder” occurs when asset prices form up to three peaks on the price chart. The peak at the middle, which is the head, will be higher above the other two on either side of it. The higher middle peak and the lower side peaks are called the head and shoulders, respectively. The peaks will, however, reach a top at a common price floor which is referred to as the “neck-line.”
## Terra Project Team
Terra was founded by the South Korean duo of Daniel Shin and Do Kwon.
Daniel Shin, outside Terra, is also the Founder & CEO of Chai. Chai is an Asian leading payment tech company. Chai owns and runs two main products; the first is Chai Port which delivers the easiest and most reliable way to connect and manage payments to e-commerce companies. The second is the Chai card which provides users a gamified reward marketplace run on the purchase intelligence from their debit or credit card transactions.
Before Chai, Daniel had founded Ticket Monster (TMON), Korea's #1 e-commerce unicorn with $3.5 billion in Gross Merchandise Volume. In 2017, he switched from being the company’s CEO to being the Chairman.
Do Kwon, on the other hand, serves as the Chief Executive Officer at Terra Labs. He is also credited with having thirteen investment portfolios in his name.
## In Conclusion
Terra has come a long way in its quest to help online businesses receive and process payments faster. Its overall strength in bootstrapping with existing companies that have turned out excellent results gives users a lot of confidence in its operation and future abilities.
Nevertheless, users always want more. With the continuous innovations in the crypto space, it is the hope of Luna users and investors that Terra as a blockchain is able to scale fast and keep leading trends.