4 Cryptocurrency Facts That Will Surprise You
1. How are Terra (LUNA), Anchor Protocol, and Bitcoin all connected?
According to Terraform Labs CEO Do Kwon, Luna Foundation Guard has raised $2.2 billion for a Bitcoin reserve. This transaction will include Terra's long-term aspirations to accumulate a $10 billion BTC reserve for UST.
Terra-Anchor APYs vs. Traditional savings accounts APYs and the role of BTC
Terra is a Proof-of-Stake (PoS) blockchain with a protocol that prioritizes stablecoins. Burn the native token $LUNA in exchange for $UST; arbitrage the money supply and receive rewards. Terra's primary DeFi application, Anchor, pay a 20 percent annual percentage yield (APY) on dollar-denominated stablecoin deposits.
This is in a market where traditional banks are offering savings accounts with APYs of less than 1%. Anchor accomplishes this in a number of ways, including bAsset yield, yield reserve, and borrowing costs. Despite this, they only account for 41% of the cash needed to service the yield. So, how a significant APY is achieved?
This is where buying Bitcoin comes in.
Terra is betting that by reorganizing UST to be "backed" by the world's primary decentralized reserve asset:
2. A bull case for Music NFTs
Music NFTs, while still a minor sector within crypto, have the potential to help the NFT industry enroll millions of new users. NFTs have been sold for $1 million or more by artists like @Grimezsz and @3LAU, opening up a whole new revenue stream. Virtual bands centered on NFT are being tested by major labels like Universal Music Group.
Music NFTs are allowing a new generation of independent musicians to bypass the music industry's intermediaries. With only a few hundred Twitter followers, @imdanielallan was able to crowdfund the costs of putting out an EP. Allan raised 50 ETH (about $140,000 at the time).
3. Connection is the new capital
The trend of community-driven capital raising isn't going away anytime soon. Today, founders are replacing this traditional round by pooling winnings from pitch competitions, programmes specifically designed to be a "first check" for founders, and using city innovation funding.
Traditional crowdfunding sites such as Kickstarter are losing favor with venture-backed entrepreneurs. Tools like Party Round and AngelList RUV can be used by founders who have previously identified their investor community.
These technologies make it simple to execute the transaction without the hassle of dealing with hundreds of documents and thousands of dollars in legal expenses in the back office. Furthermore, early-stage founders can participate in many curricular or community capital initiatives at the same time.
In exchange for programming, fundraising support, network extension, and the influence that comes with being a part of these communities, founders give up significant equity—more on this in part two.
Founders today most effectively find their way to capital through communities, or more precisely access to the individuals associated with them, whether Web2 or Web3, discord or slack, VC portfolio community, or fellowship cohort.
4. Ape responsibly
Apeing is the act of purchasing a crypto asset without doing any investigation or deliberation. You simply go with the flow. The assets appear to be in order. As a result, you press the buy button.
You've completed the ape. I've undertaken apeing too. This is the world of cryptography; everyone gets excited and ape.
However, if all you do in crypto is ape, you will have a difficult time. Buying high conviction assets and holding them for lengthy periods of time is the genuine method to build wealth. Therefore, before you ape or invest, consider the following:
Tip: Consider apeing less, or not at all, if any red flags are raised surrounding the project under consideration.
Please keep in mind that the purpose of this post is to familiarize you with the Protocols and cryptocurrencies listed above. As a result, you should never invest more money than you can afford to lose.