Anyone in the know regarding crypto will be aware of Terra’s (LUNA) collapse over the last few days – this article was written on May 10th, 2022.
Its stable coin, UST, pegged to the price of 1 US Dollar collapsed by 80%, something unprecedented in the stable coin market. This article will go through whether stable coins have a future in crypto.
What happened to Terra (LUNA)?
LUNA’s stable coin traded below the 1 Dollar mark for the very first time and sent shock waves through the Terra (LUNA) community and the rest of DeFi. The sheer panic that ensued resulted in the valuation of the LUNA token plummeting to levels below that of its algorithmic stable coin, UST.
The LUNA token is intended to act as the punch bag for its stable coin. Users are meant to be, at any given point, able to redeem $1 worth of LUNA for 1 UST. With the market cap of its native token trading below that of its stable coin. However, this would not be possible as there is more money in UST than in its parent token LUNA. If everyone wanted to ‘cash out’ then not everyone would be able to – slight parallels to the Northern Rock bank disaster can be drawn here.
Is TRON’s algorithmic stable coin doomed then?
TRON (TRX) has been trending for the past few weeks due to the announcement of its algorithmic stable coin – much like Terra’s (LUNA). The recent demise of LUNA and UST certainly doesn’t bode well for the success and longevity of the TRX token, or its native stable coin.
Like LUNA, TRON intended on establishing a $10 billion reserve in Bitcoin. Justin Sun, the founder of TRX claimed in an interview that he saw his stable coin becoming “Just like Bitcoin”. While this is an extremely audacious claim, you can’t knock the guy’s marketing ability. TRON has established itself as a solid multi-billion dollar market cap coin, with what many agree to be questionable fundamentals. Whether the TRON blockchain will see a mass sell-off like its counterpart Terra (LUNA) remains to be seen.
Quitriam Finance, cash in on the rising demand for stable coins
No one denies the need for Stable coins in crypto. 4 of the top 10 coins by market cap are now stables – Tether, USDC, BUSD, and UST. Quitriam Finance is a brand new DeFi protocol. Individuals can stake the mother token QTM and receive rewards in its pegged stable coin QT or more QTM.
Quite ingeniously though, the development team incentivises you to receive rewards in its stable coin rather than its parent token QTM by giving a greater yield when you receive stable coin rewards. This places an inherent and constant demand for the project’s stable coin and gives confluence to the success and longevity of the token.
The bearish market
This bear cycle has been particularly rough for many cryptocurrency investors. Stable coins have an intrinsic function in the future of cryptocurrencies and global payments. Because of this, any of the above-mentioned coins are likely to be resolute through a bear cycle.
Terra (LUNA) has been the subject of an almighty sell-off. It has some of the strongest fundamentals and developers in the crypto space, and ultimately LUNA has been a victim of circumstance in its titanic capitulation.
What Quitriam Finance offers is an investment into a stable coin project, that is far from any media attention. Still, in its presale, QTM has the legs to see LUNA-like returns.
Are you interested in QTM’s presale? Check below for more information:
Presale: https://presale.quitriam.io/register
Website: https://quitriam.io/
Telegram: https://t.me/QUITRIAMFINANCEOFFICIAL
Twitter: https://twitter.com/quitriamfinance
Instagram: https://www.instagram.com/quitriam_finance
Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice
