Binance Backs TMON Unicorn Founder’s $32 Million Crypto Stablecoin Financing
Yet another stablecoin is attracting big investors.
Announced Tuesday, the founder behind a $1.4 billion startup unicorn called TMON is revealing he has raised a $32 million seed round to build a stablecoin called Terra. But while a number of startups have deployed stablecoins – cryptocurrencies engineered to track the price of another asset, usually fiat currency – Terra comes with a notable addition: an existing user base.
Created by Korean entrepreneurs Danial Shin, who founded and chairs TMON, one of the top e-commerce websites in South Korea, the Terra project is launching with a significant number of partners that already reach 40 million customers. Those partners, who will together form the Terra Alliance, a group of e-commerce sites that are interested in incorporating the stablecoin into their business, include Woowa Brothers, Qoo10, Carousell, Pomelo and TIKI.
According to a spokesperson for the project, those companies, combined, take in $25 billion in sales.
“We’ve banded together all the e-commerce platforms in Asia that are not called Alibaba or Amazon to push Terra into the hands of many many people,” Shin told CoinDesk.
It’s no wonder that the round includes quite a few notable crypto investors, including Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP, Binance and others who were not disclosed.
“We are pleased to support Terra, which sets itself apart from most other blockchain projects with its established and immediate go-to-market strategy,” said Polychain’s Karthik Raju in a statement.
Echoing that, Ella Zhang, head of Binance Labs, said in a statement:
“While we see many stablecoins coming out, Terra’s journey is especially meaningful as they are designing one of the few price-stable protocols with existing, working and strong go-to-market strategy and usage.”
That use, according to Shin, is in acting as an economical digital payment system, compared to credit cards.
He told CoinDesk, that a significant portion of TMON’s annual losses take the form of credit card fees. And he’s sure other retailers experience the same.