Terra announced it has successfully closed its seed funding round with an initial USD $32 million raised to realize its vision of creating a price-stable cryptocurrency that will power its next-generation payment network. In the process, capital investment arms of four of the six largest cryptocurrency exchanges have signed on as lead investors, including Binance Labs, OKEx, Huobi Capital, and Dunamu & Partners (the investment firm of Upbit operator Dunamu).
Global blockchain-focused funds, including Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP Capital and many others also joined as investors alongside major mainstream funds like TransLink Capital.
Terra will invest the initial seed capital in building the modern financial system on the blockchain. The team aims to solve key barriers to the mass adoption of digital currencies by creating a price-stable cryptocurrency (stablecoin) that can be readily used on Terra’s blockchain payment solution.
The company’s unique go-to-market strategy leverages the large and ever-growing transaction volumes of eCommerce platforms. Terra is using a proven model that has worked tremendously well for payment platforms like AliPay and PayPal, which grew by capturing the rising transaction volumes of TaoBao and eBay respectively. To drive the same kind of rapid adoption, Terra is integrating its payment system into the Terra Alliance, a formidable alliance of global eCommerce partners on an unprecedented scale.
“We are pleased to support Terra, which sets itself apart from most other blockchain projects with its established and immediate eCommerce go-to-market strategy. Its existing technology and compelling business model provide an ideal launching pad for Terra to fundamentally disrupt how everyday digital commerce is conducted across global consumer markets.”
The Terra team is already deeply connected to the eCommerce industry, where co-founder Daniel Shin is founder and Chairman of TMON, a leading eCommerce platform in South Korea with a total Gross Merchandise Volume (GMV) of nearly $4 billion and 9 million annual customers. To date, a total of fifteen companies along with TMON have joined the Terra Alliance, including Woowa Brothers, Qoo10, Carousell, Pomelo, and TIKI – some of the fastest growing eCommerce companies in Asia-Pacific servicing Southeast Asia, Taiwan, Hong Kong, Australia, and other major markets. With a total of USD $25 billion in annual transaction volume and 40 million customers, the Terra Alliance sets the stage for Terra to become a medium of exchange at massive scale. More partners will be joining the alliance as Terra expands its global footprint.
“From experience, I know that faster, more secure transactions at a fraction of today’s fees could be a game-changer for many eCommerce platforms. We are excited to be working with great partners and look forward to beta-testing Terra’s payment system in Q4 of this year. However, our vision goes beyond positioning Terra as a trusted and secure medium of exchange for eCommerce. The potential application of Terra is immense, and we foresee it being used for all types and forms of financial products like loans and insurance.”