Why we believe in Terra’s next-gen payment solution
Many blockchain projects talk about their aspirations to gather millions of users, but not many have a clear, well-planned strategy on how to actually acquire users. That is why OK Blockchain Capital decided to invest in Terra, which has partnered with Asia’s top eCommerce companies to push adoption for its next-generation payment solution and decentralized stablecoin. Terra’s goal of becoming a global digital currency with real-world usage sets it apart from other crypto competitors. Indeed, in this crypto winter that has plagued the tech world, a robust stablecoin designed for mainstream users is exactly the breath of fresh air we need!
From the start, we were blown away with Terra’s adoption strategy. Terra has built a strong alliance with unicorns in Asia such as TicketMonster (eCommerce, Korea), Woowa Brothers (food delivery, Korea), Tiki (eCommerce, Vietnam), and Carousell (eCommerce, Singapore). To date, they have partnered with 15 platforms that collectively have $25 billion in annual transaction volume and 45 million users. That’s 45 million people Terra gets immediate access to by strategically positioning itself in Asia’s growing eCommerce market.
But a project like Terra needs more than just partners; it needs to offer a clear value proposition to consumers so they would choose Terra over other payment methods at checkout. This is where Terra’s token economy kicks in. Terra has the unique ability to fund consistent discounts with growth generated from its stablecoin economy. When the total transaction volume of Terra increases, so does the demand for its stablecoin. As a result, new money supply must be released in order to maintain the stable price of the coin. This increase in money supply is then used to finance attractive discounts for the customer, resulting in a win-win for both Terra and any Terra user. (Learn more from Terra’s blog post.) This gives Terra a leg up to digital or mobile payment competitors, many of whom must fund promotions by burning cash from their balance sheet.
Terra is launching in Korea in the next couple of months with plans to quickly expand in Southeast Asia, and it has made its global ambitions even clearer through a game-changing partnership with the Mongolian government. This was one of the first major partnerships between a stablecoin and a sovereign government, and Terra will be offering more transparent and convenient digital payments in a country that is still primarily cash-based. Terra is currently designing a pilot program with the City of Ulaanbaatar, with plans to launch in Q2 2019.
We are very excited to support Terra and its brilliant team! Co-founder Daniel Shin brings a plethora of knowledge to the table, having founded and currently serving as the Chairman of TicketMonster, Korea’s leading eCommerce platform which will launch Terra’s payment solution. Moreover, Terra’s Research team includes Evan Kereiakes from the U.S. Federal Reserve Bank and Marco Di Maggio, a Professor at Harvard Business School. We can’t wait for Terra’s payment product to launch in March and are excited to see what the team has in store for the future of money.
