UPDATED 23:01 EDT / AUGUST 29 2018

terrastablecoin EMERGING TECH

Terra raises $32M from leading Asian exchanges for its stablecoin platform

Singapore-based cryptocurrency startup Terra is the latest to attempt to establish a tradable “stablecoin,” raising $32 million today from a number of leading exchanges in an attempt to bring its white paper to reality.

Leading the investment were Binance Labs, OKEx, Huobi Capital and Dunamu, representing a spectrum of very large Asian cryptocurrency firms and, as TechCrunch pointed out, the first time the exchanges have come together on a deal. Other investors include Polychain Capital, China’s FBG Capital, Hashed, 1kx, Kenetic Capital and Arrington XRP.

Terra is taking a different slant on establishing a stablecoin, a cryptocurrency pegged to a stable asset, through a protocol of money that ensures price stability by algorithmically expanding and contracting supply. Using a stability reserve, the company claims that it can deliver a decentralized guarantee of solvency, protecting it from the speculative and regulatory risks to which other currencies are exposed.

Because these things are never simple, the Terra cryptocurrency is backed by Luna, a decentralized asset that derives its value from transaction fees collected on the Terra network. “Much like the moon stabilizes the earth’s rotation, Luna is Terra’s eternal guardian of stability,” the company explains on its website.

Those transaction fees are earned through support for Dapps and retail transactions, a strong theme for the company. “A currency that can’t be used at checkout is useless,” the company explains. “Terra is launching with a formidable alliance of commerce platforms, with $15 billion in annual transaction volume and 30 million customers.”

It has a strong point, since far too many cryptocurrencies have little to no practical use. A study quoted by Blokt earlier this month found that more than half of the top 100 cryptocurrencies have no purpose, with only 40 appearing to provide any real value to the public.

Terra isn’t the only startup attempting to establish a popular stablecoin. TrustToken Inc. having raised $61 million in a token sale in July for its TrueUSD token.

The current biggest player in the stablecoin arena is Tether, issued by cryptocurrency exchange Bitfinex. It’s currently facing fraud allegations, including accusations that Tether has no assets tied to it.

Image: Terra

Since you’re here …

Show your support for our mission with our one-click subscription to our YouTube channel (below). The more subscribers we have, the more YouTube will suggest relevant enterprise and emerging technology content to you. Thanks!

Support our mission:    >>>>>>  SUBSCRIBE NOW >>>>>>  to our YouTube channel.

… We’d also like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.

If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.