Mirror Protocol worth bounced again on Thursday as cryptocurrencies within the Terra ecosystem jumped. The MIR token rose to a excessive of $0.20, which was about 32% above the bottom degree this 12 months. Its market cap jumped to about $15 million, which is decrease than the all-time excessive of over $700 million.
What’s Mirror Protocol and why is it rising?
Mirror Protocol was as soon as one of many main platforms within the blockchain business within the Terra ecosystem. It’s a platform decentralized finance (DeFi) that allowed folks to commerce monetary derivatives in all property like currencies, shares, and commodities.
Subsequently, as an alternative of utilizing a regulated dealer like Robinhood, customers can simply purchase these monetary property in Mirror Protocol. It used Band Protocol’s oracle system to offer these worth feeds.
On August 15, Band Protocol introduced that it’ll stop offering worth feeds for Terra Protocol and its merchandise like Mirror Protocol. It attributed this case to the collapse of UST, the guts of the Terra Chain.
As well as, Band Protocol famous that Mirror Protocol’s group had failed to reply to its queries about its future. The assertion added that:
“Customers’ security is the highest precedence for Band as an infra developer and we can’t assist protocols if we’re uncertain. Neighborhood members are inspired to contact the Mirror group instantly for any enquiry.”
Subsequently, with out these worth feeds, and with none communication from Mirror, it signifies that the challenge is now not working. Up to now, Mirror was truly accused of being a pyramid scheme.
MIR worth is bouncing again as traders cheer the robust efficiency of each Terra Luna Basic and Terra Basic USD. LUNC has jumped by greater than 80% previously 24 hours whereas USTC has soared by 51% in the identical interval. Equally, Anchor Protocol and LUNA costs have jumped by greater than 25%.
Is Mirror Protocol a great purchase?
For my part, I imagine that MIR is likely one of the worst cryptocurrencies to purchase. For one, its ecosystem has virtually died now that Band Protocol is now not offering worth feeds. As well as, it’s tied to Terra Basic and USTC, cash which can be now not beneficial. As you recall, Terra USD was the guts of Terra’s ecosystem as a result of it was pegged at $1.
Subsequently, the present Mirror Protocol worth rally is probably going due to a pump and dump that’s frequent within the crypto market.