Top VC’s Including Coinbase, Galaxy Digital & Pantera Inject $25M into Terraform Labs
Stablecoin e-commerce creator Terraform Labs recently concluded a $25 million funding round that features Coinbase Ventures, Galaxy Digital, Pantera Capital, and other companies.
The Singaporean-based crypto and tech startup has successfully penetrated the South Korean market and wants to expand its operational capacities with the funding.
Founder and Chief Executive Officer of Galaxy Digital, Michael Novogratz, commented on the funding round by stating that it is an important one for everyone in the industry.
“What’s great about Terra is they are one of the first sandbox experiments that are getting outside the sandbox,” he added.
Terraform's payment gateway has received wide attention among stores and merchants looking for a more efficient payment platform for their users. The platform uses blockchain technology to facilitate payment and transactions.
The seamless integration has made many users forget they are using a different technology. Currently, the platform carries out more than 90,000 daily transactions and has about 2.2 million users.
Terraform will Bring Benefits to Finance
Chief Executive Officer of Pantera Capital, Paul Veradittakit, stated that the Terra ecosystem has made users see the immense benefits of programmable money to commerce. The platform will also bring the same benefits to finance.
Previous investors in Terraform, such as Kenetic Capital, Arrington XRP, and Hashed, also participated in this funding round. It’s proof that whatever Terraform is doing has been effective.
More investors participated in the latest funding round than its previous round, which shows more companies and investors are gradually warming up to the platform. However, while the company raised $32 million in its first-ever funding activity, the latest round was below $25 million.
Terraform was launched in 2018, after backing from Polychain and Binance during its first funding. The Platform also has a stablecoin, called TerraKRW or TerraUSD, based on its LUNA token.
LUNA is the blockchain’s governance token, according to the white paper. When it comes to volatility, the governance token absorbs it to defend its stablecoins’ utility.
The Terra stablecoins have grown in acceptance and popularity because they do not operate within the Ethereum ecosystem, offering users an alternative. Its blockchain is based on Tendermint, which makes it part of the larger Cosmos ecosystem.
More Projects Ahead
According to Terraform, its blockchain generates $13 million annual fees, while Chai, its payment system, sees $1.2 billion in transactions with 2 million users. The Chai payment system uses the TerraKRW stablecoin that monitors the price of the South Korean Won.
Last year, Terraform announced that it would be launching a DeFi savings platform known as Anchor. According to the announcement, the platform will generate a more improved interest rate as it will back proof-of-stake networks. Last year's scheduled release date was not met, but the company plans to launch in the first quarter of this year.
The company also hinted at the launch of “Mirror,” a new synthetic equities market that will allow users to buy tokens in line with the price of equities in the U.S. stock market.