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Breaking News: Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities
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Breaking News: Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities

Why Terra Co-Founder Do Kwon Hyped Up This UST-based Airdrop

Reynaldo Marquez
Reynaldo Marquez
3 years ago
2 mins read
Terra LUNA LUNAUSDT Do Kwon

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The Terra ecosystem keeps on expanding, increasing the total market cap of its native token LUNA. The cryptocurrency has managed to enter the top 10 digital assets by market cap replacing memecoins DOGE and Shiba Inu (SHIB).

Related Reading | Terra’s UST Becomes First Decentralized Stablecoin To Surpass $10B Market Cap

As of press time, LUNA follows the general sentiment in the market with a 4.4% loss in the last week, but some profits in lower timeframes. The Terra-based cryptocurrency trades at $49,58 and has seen much less loss than larger cryptocurrencies, such as Bitcoin and Ethereum, which record over 10% losses in the same period.

LUNA Terra LUNAUSDT
LUNA moving sideways on the daily chart. Source: LUNAUSDT Tradingview

Terra’s success seems supported by its protocol’s tool to provide users with vast opportunities to generate profits via staking or “locking down” their tokens. In that sense, the ecosystem’s stablecoin UST has also seen impressive growth zooming on Tether (USDT), and USD Coin (USDC), in terms of market cap.

Via his Twitter account, Do Kwon, Terraform Labs Co-Founder, mentioned a new use case that seems poised to increase the demand for UST. Lending and borrowing platform Mars protocol announced the start of its lockdrop which incentivizes users to lock their UST to receive rewards.

I’m coming in https://t.co/7jRgSEVR31

— Do Kwon 🌕 (@stablekwon) February 21, 2022

User will yield farm the protocol’s governance token MARS by locking any amount of the stablecoin for the next 3 to 18 months, as clarified in an official announcement. After this period is concluded, the user will be able to withdraw 100% of their initial investment. The team behind the protocol said:

All participants who lock $UST will receive a “drop” of fully transferable MARS governance tokens when the full protocol launches in ~2 weeks. As knowledgeable DeFi users with skin in the game, lockdrop participants will receive the vast majority of circulating MARS tokens at launch (around March 7).

Terra Enables More Yield Farming Opportunities

Created as an open-source, algorithm, and non-custodial credit protocol supported by its own governance model, the Mars protocol will distribute 10,000,000 MARS governance tokens to participants within the Terra ecosystem. The airdrop has the objective of helping Mars to “function properly”.

Terra LUNA LUNAUSDT
Source: Mars Protocol via Medium

In addition to those users locking their UST on the protocol, liquidity providers for the MARS/UST trading pair on the decentralized exchange Astroport will be able to earn a portion of 10,000,000 in the governance token for 1 year. This process will be post-launch and will include those users with UST deposits to the Red Bank.

Related Reading | Terra (LUNA) Holders Approve New Sports Sponsorship Deal

LUNA holders will benefit from this launch, as stated by the team behind Mars, with a one-time distribution on 10,000,000 MARS. In order to receive the airdrop, users needed to be stakers by January 1st, 2022, when a snapshot was taken to determine the beneficiaries. The announcement added:

Airdrop recipients will be able to claim their tokens for up to three months after the launch of Mars. Any unclaimed tokens will be returned to the Martian Council — a DAO of xMARS token holders.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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