Crypto Stablecoin Terra Raises $32M USD In Seed Fundingbr>
Blockchain project Terra has raised $32 million in seed funding to build a new price-stable digital currency.
The seed funding round was led by Binance Labs, OKEx, Huobi Capital, and Dunamu & Partners (the investment firm of Upbit operator Dunamu). The round also drew support from global blockchain-focused funds, including Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP Capital, as well as mainstream funds like TransLink Capital.
Founded by Daniel Shin, who is also the founder and Chairman of TMON, one of the top e-commerce websites in South Korea, Terra describes itself as a protocol of money that ensures price-stability by algorithmically expanding and contracting supply. It claims that its Stability Reserve makes a decentralized guarantee of solvency, protecting it from the speculative and regulatory risks that other currencies are exposed to.
In order to drive rapid adoption, Terra is using a proven model that has worked tremendously well for payment platforms like AliPay and PayPal, working with Taobao and eBay, respectively. The startup is building the Terra Alliance, a group of global ecommerce partners that will help drive fast adoption and usage of its blockchain payment system. Terra said 15 companies have joined the alliance so far, including TMON, Woowa Brothers, Qoo10, Carousell, Pomelo, and TIKI.
“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,” Shin said. “We are excited to be working with great partners and look forward to beta-testing Terra’s payment system in Q4 of this year. 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.”
Karthik Raju of Polychain Capital said that Terra’s existing technology and compelling business model provide an ideal launching pad for the startup to fundamentally disrupt how everyday digital commerce is conducted across global consumer markets.
“We are pleased to support Terra, which sets itself apart from most other blockchain projects with its established and immediate ecommerce go-to-market strategy,” said Raju.