Mirror Protocol price bounced back on Thursday as cryptocurrencies in the Terra ecosystem jumped. The MIR token rose to a high of $0.20, which was about 32% above the lowest level this year. Its market cap jumped to about $15 million, which is lower than the all-time high of over $700 million.
What is Mirror Protocol and why is it rising?
Mirror Protocol was once one of the leading platforms in the blockchain industry in the Terra ecosystem. It is a platform decentralized finance (DeFi) that allowed people to trade financial derivatives in 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. It used Band Protocol’s oracle system to provide these price feeds.
On August 15, Band Protocol announced that it will cease providing price feeds for Terra Protocol and its products like Mirror Protocol. It attributed this situation to the collapse of UST, the heart of the Terra Chain.
In addition, Band Protocol noted that Mirror Protocol’s team had failed to respond to its queries about its future. The statement 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, 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 is bouncing back as investors cheer the strong performance of both Terra Luna Classic and Terra Classic USD. LUNC has jumped by more than 80% in the past 24 hours while USTC has soared by 51% in the same period. Similarly, Anchor Protocol and LUNA prices have jumped by more than 25%.
Is Mirror Protocol a good buy?
In my view, I believe that MIR is one of the worst cryptocurrencies to buy. For one, its ecosystem has almost died now that Band Protocol is no longer providing price feeds. In addition, it is tied to Terra Classic and USTC, coins that are no longer valuable. As you recall, Terra USD was the heart of Terra’s ecosystem because it was pegged at $1.
Therefore, the current Mirror Protocol price rally is likely because of a pump and dump that is common in the crypto market.