Mirror Protocol value 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 stage this yr. 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 individuals to commerce monetary derivatives in all belongings like currencies, shares, and commodities.
Due to this fact, as a substitute of utilizing a regulated dealer like Robinhood, customers can simply purchase these monetary belongings in Mirror Protocol. It used Band Protocol’s oracle system to offer these value feeds.
On August 15, Band Protocol introduced that it’ll stop offering value feeds for Terra Protocol and its merchandise like Mirror Protocol. It attributed this case to the collapse of UST, the center of the Terra Chain.
As well as, Band Protocol famous that Mirror Protocol’s crew had failed to answer its queries about its future. The assertion added that:
“Customers’ security is the highest precedence for Band as an infra developer and we can not help protocols if we’re uncertain. Neighborhood members are inspired to contact the Mirror crew immediately for any enquiry.”
Due to this fact, with out these value feeds, and with none communication from Mirror, it signifies that the challenge is not operating. Previously, Mirror was really accused of being a pyramid scheme.
MIR value is bouncing again as buyers cheer the robust efficiency of each Terra Luna Traditional and Terra Traditional USD. LUNC has jumped by greater than 80% up to now 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 an excellent purchase?
In my opinion, I consider that MIR is without doubt one of the worst cryptocurrencies to purchase. For one, its ecosystem has nearly died now that Band Protocol is not offering value feeds. As well as, it’s tied to Terra Traditional and USTC, cash which can be not invaluable. As you recall, Terra USD was the center of Terra’s ecosystem as a result of it was pegged at $1.
Due to this fact, the present Mirror Protocol value rally is probably going due to a pump and dump that’s widespread within the crypto market.