The cryptocurrency industry is full of jargon and unique quirks, even those with financial knowledge find the crypto markets difficult. There are many crypto-specific factors affecting the growth, adoption, and returns of this emerging blockchain-powered industry.
When trying to understand the nuances of a specific cryptocurrency, it can be helpful to think of a crypto project as similar to a high-growth startup.
Venture capital funds, also known as "VCs", pool money from different investors to invest in a basket of startups and ask themselves three important questions before making any investment:
Problem 1: What does this company offer that others do not?
Problem 2: Does this company show growth and interest in your product?
Problem 3: What problem does it solve and what is the size of the market for this problem?
“Answering the same questions when it comes to investing in crypto makes sense, and is the approach many professional crypto investors take when evaluating what to invest in,” says Brett Hope Robertson, head of crypto investing at Revix.
By asking these questions about the highest performing crypto of 2021 (LUNA), we discovered the full potential that the Terra network has to offer.
What are Terra and LUNA?
Terra Network is a cryptocurrency that is different from Bitcoin but similar in functionality to Ethereum, Cardano, and Solana.
Bitcoin is a hybrid digital payment system and digital gold investment option. Ethereum, Cardano, and Solana, on the other hand, are known as “smart contract”-enabled cryptocurrencies. Unlike Bitcoin, these cryptocurrencies allow apps to be built on top of their blockchain networks, just like you have different apps running on your mobile phone operating system.
Terra Network, with its native cryptocurrency LUNA, is also a smart contract-enabled cryptocurrency, but what sets it apart from the rest is that it has a very different purpose. If you think of Terra as a business, it could be seen as a combination of a bank (such as FNB) and a payment network (such as Visa) that aims to make banking and payments cheaper and faster.
It may come as a surprise to some that Terra Networks' LUNA cryptocurrency has been the best performing investment of the last year with a return of over +14,700% in 2021.
In fact, an investment of R1,000 in LUNA would have resulted in +R147,692 in the last 12 months. This return on investment is more than 240 times higher than if you had invested in Bitcoin during the same period. The latter would have offered you an investment amount of +1,594 rand today.
This is an astonishing performance that has made all existing LUNA tokens (known as the network market cap) worth over €20 billion. This is about the same total value as MTN and more than 5 times the total value of Woolworths.
Incredible returns, but what drives this value?
Terra Network is one of the leading smart contract enabled blockchain networks aimed at rebuilding the slow and expensive payment system we have today. Terra does this by creating and transferring stablecoins.
Stable coins they are simply cryptocurrencies that are pegged to conventional government-backed currencies (ie Rand or US dollar).
Terra's blockchain network allows its users to spend, save, trade or exchange these stablecoins instantly. All of this can be done on the Terra blockchain without the need for banks or financial intermediaries.
The best way to simplify what Terra does is to think of it as the fundamental enabling layer for extremely unique and revolutionary FinTech applications.
You can think of investing in Terra as investing in a basket of FinTech and banking apps, each with its own specific use case and potential customer. Instead of owning a single application, you have the option of owning the foundational application layer that runs the most successful FinTech applications. That number of apps could grow as developers are willing to trust Terra's network.
These are the factors that drove LUNA returns in 2021:
● Important technological developments of Terra Network that have improved scalability and functionality
● More than 70 newly confirmed projects are expected to be built on Terra this year, which is one of the largest projects in the cryptocurrency and blockchain space.
● The potential of the Terra network to capture market share of a very large market
What is MOON?
LUNA is the native cryptocurrency of the Terra Protocol and one of the top 10 cryptocurrencies, measured by market capitalization.
The LUNA token serves two purposes: to create and stabilize the price of stablecoins in the protocol, and to give their holders governance rights over the management of the network.
By focusing on stablecoins, the Terra protocol has made financial applications very efficient. This, as a result, has accumulated billions of dollars in value. Terra users can send money to each other in seconds, earn interest on their savings, and even apply for a loan.
Should I buy Terra's LUNA cryptocurrency?
Greater growth potential
The global FinTech marketplaces and payments industry is valued at over €160 billion and is expected to grow to €310 billion at an annual growth rate of 24% until 2025. Stablecoins, which Terra enables through its blockchain network, have opened a multi-million dollar opportunity in payments and finance and their offer has increased from 5.000 million dollars to 170.000 million of dollars. Terra stablecoins could reach a 20% market share by 2025, compared to less than 8% today in 2022.
It's time to think like a VC. You must be wondering what problem does it solve? Does Terra see the adoption? And what is the size of the market you intend to disrupt?
The Terra network is:
1. Make the global payment system more efficient
The Terra blockchain can handle more than 10 transactions per second at almost zero cost, even on weekends. Visa, which processes 000 transactions per second, transacts only on weekdays and costs more than 1.700 times as much.
2. See explosive growth
Although Terra is still relatively new, it has accumulated a great deal of value. Terra's Chai payment system has 2 million users and, according to the Terra website, processes more than $XNUMX billion in transactions each year.
3. Greater growth potential
The global FinTech payments and marketplaces industry is valued at over €160 billion and is expected to grow to €310 billion at an annual growth rate of 24% until 2025. saw its supply increase from €5 billion to €170 billion. Terra stablecoins could reach a 20% market share by 2025, compared to less than 8% today in 2022.
Where can I buy MOON?
Cape Town-based crypto investment platform Revix (www.revix.com) will be the first platform in south africa for Terra Offer (MOON).
The Revix platform makes it easy to invest in cryptocurrencies. You can get started in just a few minutes and use their online platform to check your crypto anytime, anywhere.
With Revix, you are in good hands. The Sabvest-backed fintech is not only listed on the JSE, but was the first platform in South Africa to conduct a Proof-of-Reserves audit to independently verify that all of its clients' assets are safe and secure.
Revix will offer LUNA from February 25, 2022 with a tempting free promotion on all investments.
How would you invest if you knew you couldn't lose? Revix gives you that opportunity. From February 16 to March 1, Revix offers you the opportunity of an investment whose value cannot decrease. And if so, Revix has you covered. This is your chance to earn some money and diversify your portfolio with the certainty that you can only win.
How to participate ?
Register using the promotional code: BLANKET. After registering, you must invest R5,000 in the Smart Contract Package, Top 10 Package or Payment Package among the February 16 and March 1, 2022*. During this period, your investment is covered against loss. If the value of the Package has decreased at the end of the promotion period, Revix will refund the difference. It's so simple. You will be compensated only in pooled units. *Terms and Conditions apply.