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DISCLAIMER: This is not financial advice! None of the members of ICOPools.io are licensed financial advisors, hence you are urged to do your own due diligence and take your own decisions. (read more)

Terra

Terra

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Active Pools Min cap Bonus Commission Raised Rating Language Access Created
Last ICO deals

Min cap

0.5 ETH

Bonus

30%

Commission

5.5%

Raised

124 / 317 ETH

Active

09.10.2018

Lockup: 3 months for both Terra and Luna.

Finished successfully

17.10.2018

Min cap

0.5 ETH

Bonus

-

Commission

3.45%

Raised

125 / 500 ETH

Active

18.10.2018

Finished successfully

22.10.2018

Min cap

0.25 ETH

Bonus

-

Commission

3%

Raised

180 / 301 ETH

Active

18.10.2018

Finished successfully

23.10.2018

Min cap

0.25 ETH

Bonus

-

Commission

0.5%

Raised

135 / 301 ETH

Active

23.10.2018

Finished successfully

30.10.2018

Analytics

Category: Financial Services, Stable-coin                                                                      Country: Singapore  Date: October 19, 2018

 

 

INTRO

Terra is a price-stable cryptocurrency based on the Quantity Theory of Money that can make a guarantee of solvency with a reserve made up of decentralized assets. The price-stability of such a regime can’t be taken away by centralized actors nor attacked by speculators. Terra is an improvement on both fiat and cryptocurrencies, since it is safe from both speculative volatility and political pollution of its monetary policy. It will leverage its scale and network effects to facilitate the development of unbounded financial dApps, growing the real GDP of the blockchain economy.

 

 

TOKENOMICS

Metrics

Private Sale: August 29, 2018*

ICO Time: TBA

Token: LUNA

Token type: No data

Hard cap: No data

Total Token Supply: No data

Price: No data

Minimum investment: no data

Discount: No data

Bounty: No data

Accepting: No data

Сan't participate: No data

 

NOTE:

  • * According to Crunchbase the project has held one seed round with 11 investors and collected $32M during this round ended on August 29, 2018.
  • The project hasn’t provided any substantial information about terms and conditions of ICO. There is not enough data, therefore, it’s not possible to objectively evaluate this criteria.

 

Tokens distribution

Token distribution:

No data


 

Crowdsale funds distribution:

No data

 

NOTE:

There is not enough data, therefore, it’s not possible to objectively evaluate this criteria.

 

Protective measures against the tokens depreciation

The very essence of stable-coins concept implies the absence of tokens depreciation and its stability over a long time period.

 

 

PRODUCT

The relevance of market problems solved by the project

The issues team seeks to resolve are the following:

  • Fiat fiscal spending suffers from centralization risk in its elected delegates, which are influenced by political variables and corporate lobbies. This leads to inefficient and inequitable allocation of capital
  • For utility token projects, it is difficult to build an economy on tokens that are inherently subject to price speculation
  • Price volatile currencies cannot be used as a unit of account, as the purchasing power implied by contractual obligations and balance sheets would constantly change over time.

 

The description of key products and project technology

Terra token is price-pegged to a basket of different currencies. First composition of the basket will look like the IMF's SDR (Currently U.S. Dollar 41.73%, Euro 30.93%, Renminbi 10.92%, Japanese Yen 8.33%, British Pound 8.09%) but the basket will over time include goods and services with worldwide usage such as gold, corn, and timber. This enables Terra free from specific monetary policies of any government (like tether, true USD) and allows for a transition to a fiat-independent monetary policy regime.

 

Terra will have a stability reserve that finances contraction of the Terra money supply whenever necessary. Given that Terra is not backed by a sovereign government, whose authority, monopoly of force and taxation provide backing to fiat currencies, the robustness of its Reserve is essential to stability.

 

Terra is backed by Luna, a decentralized asset with fixed supply that derives its value from transaction fees collected on the Terra network. The protocol relies on Luna for the price stability of Terra network. Fees from transactions in the network are used to reward users who participate in the system’s process, which requires staking Luna in the Stability Reserve.

 

Every predetermined time period, the protocol engages in the following mechanisms to stabilize Terra’s token price:

  • Price estimation via deposit holder vote: the protocol estimates the current price for Terra relative to the asset it is pegged to by taking votes weighted-by-stake of the deposit holders in the Stability Reserve.
  • Maintenance of full reserve: the protocol maintains a “stability reserve” made up of user deposits with rewards varied to ensure the system is over-reserved.
  • Price stabilization by expansion and contraction of the money supply: the protocol expands and contracts the supply of Terra tokens to calibrate the exchange rate.

 

NOTE:

Code-level specifications and implementation details of the platform are not presented in projects whitepaper.

 

The stage progress and milestones of the project development (Roadmap)

The roadmap is not presented in open official sources.

 

The project is in its early stage of development and doesn’t have MVP (according to the official site, mobile versions of the platform for iOS and Android are coming soon).

 

The code base of system components is presented on GitHub.

 

The importance of blockchain in the project

The reserve must be constructed from decentralized assets, as centralized assets carry significant custodial risk. There is also risk of seizures, regulatory scrutiny, bankruptcy or natural disaster. Through maintenance of a decentralized full-reserve, the system can operate via a guarantee of solvency that is capable of fully funding contractions.

 

NOTE:

Though the blockchain technology is quite crucial to the project implementation, the team is not even sure which blockchain to launch their project on and have mentioned a number of possibilities including

 

 

TEAM AND PARTNERS

Experience and the team achievements

The team consists of 10 members very well experienced in fields of computer science, software engineering, economics, finance, banking and investment:

Daniel Shin, Co-Founder - Co-Founder & Partner of The Encore Company (10 mths) / Founder & Chairman of TMON (8 yrs 10 mths) / Co-Founder & Board Member of Fast Track Asia (6 yrs) / Business Analyst at McKinsey&Co (1 yr 6 mths)

 

Do Kwon, Co-Founder - Founder & CEO of Anyfi Inc. (2 yrs 2 mths)

 

Nicholas Platias, Head of Research - Co-Founder of Guru Labs (2yrs) / Software Engineer at RelatelQ (1 yr) / Algorithms Engineer at Nest (1 yr) / Trading Analyst at National Bank of Greece (1 yr)

 

Evan Kereiakes, Core Researcher - Portfolio Manager, Foreign Trading Operations Manager, Trader Associate at Federal Reserve Bank of New York (5 yr 6 mths) / Economic Analyst at US Department of the Treasury (1 yr 1 mths) / Economic Policy Advisor Intern at White House (5 mths) / Business Associate at Bank of America Merrill Lynch (2 yrs)

 

Marco Di Maggio, Core Researcher - Assistant Professor of Business Administration in Harvard Business School (2 yrs 4 mths) / Assistant Professor of Economics and Finance at Columbia Business School (3 yrs) / Research Associate at Credit Suisse (1 yr)

 

Don Kim, Head of Business - Business Development Manager at Streami Inc. (10 mths) / Military Diplomacy Officer at Korean Ministry of National Defence (1 yr 7 mths) / Founding Director for Business Analysis at SPOUTS of Water (2 yrs 9 mths)

 

KJ Lee, Head of Product - Head of Development at Mesh Korea / Product Owner at TicketMonster / built its “Super Mart” service, managing overall logistics, supply chain, and payment processes. The profile in LinkedIn is absent

 

Changjoon Han, Head of Finance - Portfolio Manager at Korean National Pension Service Investment Management (3 yrs) / FX Trader, Investment Analyst at Mirae Asset Global Investments (2 yrs) / Rates Trader at Hanwha Investment & Securities (2 yrs) / Stuff Sergeant at Republic of Korea Air Force (2 yrs) / Intern Program Manager at Microsoft (1 yr)

 

Gigi Kwon, Head of Communications - EIR at the Encore Company (5 mths) / Marketing Manager at Uber (2 yrs 1 mths) / Associate at Group Gordon (2 yrs) / Research Assistant at University of Pennsylvania (1 yr 1 mths) / PR Intern at Hydros (6 mths)


Wayne Shu, Head of Strategy - Left Stanford to participate in numerous projects early on, both as an active investor and advisor. The profile in LinkedIn is absent

 

Advisory board

The project has no Advisory Board.

 

NOTE:

There team seems to be extra qualified, so it’s not quite crucial for the project to form the Advisory Board

 

Strategic partners

The following companies will together form the Terra Alliance, a group of e-commerce sites that are interested in incorporating the stablecoin into their business:

 

TMON (Ticket Monster Inc.) — founded in 2010 one of leading e-commerce companies in Korea.

Woowa Brothers —  Korean developer of smartphone applications and advertising platforms.

Qoo10 — Japanese online shopping platform that sells clothing, cosmetics, beauty and skin care products, mobile, and more.

Carousell — Singapore-based consumer-to-consumer marketplace application for iOS and Android.

Pomelo — a leading international fashion e-commerce company based in Bangkok.

TIKI —  the fastest-growing retail company in Vietnam well-positioned to be an industry winner.

ALTHEA — Korean premier beauty e-commerce that provides the latest beauty products, trends and lifestyle to consumers in Southeast Asia.

 

Large investors and investment funds

The project is backed by a whole bunch of famous foundations like:

 

Binance Labs, Huobi Capital, OKEx, Monex Group, Polychain Capital, FBG Capital, #HASHED, Dunamu & Partners, 1KX, Kenetic, Arrington XRP Capital, Passport Capital, Hof Capital, Translink Capital, KakaoVentures, GBIC, Nirvana Capital, Divergence Digital Currency Fund, Alphanonse, KakaoInvestment.

 

NOTE:

There project has already collected $32M from investment funds during the seed round held on August 2018.

 

 

MARKET

Competitive environment

The main competitors of the project are the following stablecoins:

 

  • Tether (market capitalization $2.2B)*
  • TrueUSD ($160M)
  • Paxos Standard Token ($42M)
  • MarkerDAO ($35.6M)
  • USD Coin ($24M)
  • BitUSD ($14M)
  • Gemini Dollar

 

The market of stablecoins is growing with very fast paces in 2018, as the community is realising the value of volatile-stable assets in cryptomarkets.

 

NOTE:

*Binding of the cryptocurrency rate to USD is used to stabilize the price of Tether.  But it is impossible to verify the actual volume of fiat backings as Tether is a closed project closely connected to Bitfinex executives, and the results of legal audit are not being disclosed. All that causes a growing mistrust of market participants. Some investigations state, that market-makers used Tether tokens for artificial pump of Bitcoin price in 2017 and the whole structure of Tether remains to be very turbid. The latest confusing situation with Tether took place at the 15 of October, when the price of this stablecoin dropped in 15% within several hours. Though the next day the situation normalized (now the price of Tether is $0,986 according to Coinmarketcap).

 

The project advantages

  • Very strong team experienced in fields of computer science, software engineering, economics, finance, banking and investment
  • Terra is designed for mass adoption.
  • The project has already collected $32M from well-known investment funds during seed round.
  • Terra is creating strong alliance with a group of leading asian e-commerce sites that are interested in incorporating the stablecoin into their business.

 

 

SOCIAL ACTIVITY

The project popularity in the social networks and discussion forums

The project is detected on the radar of one influencer — Crypto Calibur (81).

 

Telegram: 4k members, user activity is low.

Twitter: 777 followers

Medium: 116 followers

 

NOTE:

The level of social activity is very low compared to some

competing projects social activity metrics.

 

 

RISK ASSESSMENT

Pros:

  • Very strong team experienced in fields of computer science, software engineering, economics, finance, banking and investment.
  • Terra is designed for mass adoption with wide range of application possibilities.
  • The project has already collected $32M from well-known investment funds during seed round.
  • Terra has created strong alliance with a group of leading asian e-commerce sites that are interested in incorporating the stablecoin into their business.
  • Rapidly growing market of stablecoins can give an opportunities to new projects with well established models.

Cons:

  • The market share is concentrated in one players hands — Tether, which is the main liquidity provider in field of stablecoins. Other projects don’t even come close to the success of Tether.
  • The project is in its early stage of development and doesn’t have a roadmap and MVP.
  • No information about token metrics, hard cap, soft cap token allocation and the use of collected funds.
  • The project has no advisory board.
  • The level of social activity is very low.

CONCLUSION: Terra is a price-stable cryptocurrency designed for mass adoption. The project is very strong in certain areas and has already collected $32M in seed round from well-known investment funds. Also it has created a strong alliance with a group of leading asian e-commerce sites. However, there are some issues that potential investors need to pay attention to. Firstly, it is still early days of development and there is no MVP, roadmap, the description of token metrics and the allocation of collected funds. Secondly, the team is not even sure  which blockchain the platform is going to be launched on. The list of concerns may be added with the lack of advisory board and a very low level of social activity. As a result, this could be a long term project with no significant developments taking place until 2019. Furthermore, no hard cap has been set, and the information produced by the team has been spread out across various press releases highlighting the project’s early stage. The market of stablecoins is now dominated by Tether, which is the main liquidity provider in this field and other projects don’t even come close to the Tethers success, though it’s being constantly descreditized. This could make an advantage for new projects in the area which can move Tether off the pedestal with clear well established models and appropriate level of development.

 

The project hasn’t provided any substantial information about terms and conditions of ICO. All the materials posted in opened sources are mostly dedicated to the description of how the system works. There is not enough data for evaluating some criteria.

 

 

Fraud risk - low. Community interest - low.

Product - 7
Team and partners - 8.3
Market - 7.8
Average score - 7.9

DISCLAIMER: This is not financial advice! None of the members of ICOPools.io are licensed financial advisors, hence you are urged to do your own due diligence and take your own decisions. (read more)