The Investor’s Guide to Terra and Luna

Remember that “Terra” means “Earth,” as in “plunging back to Earth.”

Terra and Luna: How They Work

This is how most algorithmic stablecoins maintain their peg: through another token that acts as a “balancer.” (Courtesy The Tie Research)
Remember: with stablecoins, we want the flattest line possible.
The idea is that Terra is stable, Luna is speculative.

Terra/Luna Risk #1: Algorithmic Stablecoins

Remember: flat line = good, wavy line = bad
Here’s an idea: don’t build a stablecoin on something called WAVES
Don’t look up.

Terra/Luna Risk #2: High-Yield APYs

Terra/Luna Risk #3: New Blockchains

Terra/Luna Risk #3: New Blockchains

Conclusion: The Risks Outweigh the Rewards

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CEO of Media Shower. Publisher of Bitcoin Market Journal. Author of Mind Hacking. Making things better.

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Sir John Hargrave

Sir John Hargrave

CEO of Media Shower. Publisher of Bitcoin Market Journal. Author of Mind Hacking. Making things better.

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