The price of the Mirror Protocol rebounded on Thursday as cryptocurrencies in the Terra ecosystem surged. The MIR token hit a high of $0.20, around 32% above the low level this year. Its market cap jumped to around $15 million, which is below the all-time high of over $700 million.
What is Mirror Protocol and why is it increasing?
Mirror Protocol was once one of the leading blockchain industry platforms in the Terra ecosystem. It is a decentralized finance (DeFi) platform that allowed people to trade financial derivatives on all assets like currencies, stocks, and commodities.
Therefore, instead of using a regulated broker like Robinhood, users can easily buy these financial assets in Mirror Protocol. He used Band Protocol’s oracle system to provide these price feeds.
On August 15, Band Protocol announced that it would stop providing price feeds for Terra Protocol and its products like Mirror Protocol. He attributed this situation to the collapse of the UST, the heart of the Terra chain.
Additionally, Band Protocol noted that the Mirror Protocol team did not answer their questions about their future. The press release added that:
“User safety is Band’s top priority as an infra developer and we cannot support protocols if we are unsure. Community members are encouraged to contact the Mirror team directly to any inquiries.
Therefore, without these price feeds and without any communication from Mirror, it means that the project is no longer running. In the past, Mirror was actually accused of being a pyramid scheme.
MIR price rebounds as investors applaud the strong performance of Terra Luna Classic and Terra Classic USD. LUNC jumped over 80% in the past 24 hours while USTC jumped 51% in the same period. Similarly, Anchor Protocol and LUNA prices jumped over 25%.
Is Mirror Protocol a good buy?
In my opinion, I think MIR is one of the worst cryptocurrencies to buy. For one thing, its ecosystem is almost dead now that Band Protocol no longer provides price feeds. Additionally, it is tied to Terra Classic and USTC, coins that no longer have value. As you remember, Terra USD was the heart of the Terra ecosystem because it was pegged at $1.
Therefore, the current rise in Mirror Protocol prices is likely due to a common pump and dump in the crypto market.