Mirror Protocol price bounced again on Thursday as cryptocurrencies in the Terra ecosystem jumped. The MIR token rose to a excessive of $0.20, which was about 32% above the bottom degree this yr. Its market cap jumped to about $15 million, which is decrease than the all-time excessive of over $700 million.
What is Mirror Protocol and why is it rising?
Mirror Protocol was as soon as one of many main platforms in the blockchain business in the Terra ecosystem. It is a platform decentralized finance (DeFi) that allowed folks to commerce monetary derivatives in all property like currencies, shares, and commodities.
Therefore, 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 price feeds.
On August 15, Band Protocol introduced that it’s going to stop offering price feeds for Terra Protocol and its merchandise like Mirror Protocol. It attributed this example to the collapse of UST, the guts of the Terra Chain.
In addition, Band Protocol famous that Mirror Protocol’s crew had failed to answer its queries about its future. The assertion added that:
“Users’ safety is the top priority for Band as an infra developer and we cannot support protocols if we’re unsure. Community members are encouraged to contact the Mirror team directly for any enquiry.”
Therefore, with out these price feeds, and with none communication from Mirror, it implies that the challenge is now not working. In the previous, Mirror was really accused of being a pyramid scheme.
MIR price is bouncing again as traders cheer the sturdy efficiency of each Terra Luna Classic and Terra Classic USD. LUNC has jumped by greater than 80% in the previous 24 hours whereas USTC has soared by 51% in the identical interval. Similarly, Anchor Protocol and LUNA costs have jumped by greater than 25%.
Is Mirror Protocol a good purchase?
In my view, I consider that MIR is one of many worst cryptocurrencies to purchase. For one, its ecosystem has virtually died now that Band Protocol is now not offering price feeds. In addition, it is tied to Terra Classic and USTC, cash which might be now not priceless. As you recall, Terra USD was the guts of Terra’s ecosystem as a result of it was pegged at $1.
Therefore, the present Mirror Protocol price rally is doubtless due to a pump and dump that is widespread in the crypto market.
