Bitcoin, safe haven! – Terra (LUNA) had already bought 6,000 bitcoins (BTC) recently. Terra Co-Founder Do Kwon Now Reveals The Company Will Buy Bitcoin ” for life “. The objective of this maneuver is to support new currencies based on its stablecoin, TerraUSD (UST). bitcoin is the collateral asset of choice for one of the greatest stablecoins decentralized in the world. Do Kwon, who is one of its main leaders, has also claimed that there is no other. Speaking to Bloomberg on Monday, blockchain protocol co-founder Terra pledged to continue buying BTC to support the stablecoin of his business.
The Terra Whale Goes for Bitcoin
The Terra Whale has been making waves in the crypto community in recent weeks with its massive Bitcoin purchases. Currently estimated at just over 30,000 BTC, Luna Foundation Guard (LFG) reserves are expected to reach the equivalent of $10 billion. The non-profit association of Terra therefore has a bright future ahead of it if it pursues this objective.
In his final comments, Kwon went even further. Indeed, he claims that as long as he continues to create UST, Terra will continue to buy BTC to support it.
“One important thing to remember about what we’re going to do here is that this is not a corporate cash decision in the sense that I’m not buying Bitcoin. […] I have already donated money so that we can build up these reserves on behalf of the community and we plan to do so in perpetuity. So the roughly $3 billion that we’re buying initially to seed the reserves is going to be followed by […] persistent Bitcoin buying through UST seniority […] each time the UST is created, new bitcoins will be added to the reserves. »
Do Kwon, co-founder of the Terra blockchain protocol
Inasmuch as stablecoin decentralized, anyone can “monetize” the UST by burning for $1 of another decentralized asset, Kwon explained. UST is the largest stablecoin decentralized with market capitalization of approximately $16.5 billion. the stablecoin Tether (USDT), the largest global stablecoin, has a market capitalization of $82 billion.
“The easiest way to understand this: (…) we use Bitcoin to create a decentralized forex reserve for the stablecoin Terra »
Do Kwon, co-founder of the Terra blockchain protocol
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Let the plankton bow once and for all
Very active on Twitter, Do Kwon is committed to eliminate all forms of competition. The co-founder of Terra aims in particular to stablecoin Dai (DAI) from MakerDAO. The Luna Foundation Guard, meanwhile, is in the green. Terra co-founder Do Kwon, however, points out that he is not “able to move” bitcoin markets.
Last week, Kwon announced to his followers that he “just getting started”. However, he has yet to give any additional concrete details regarding the time frames between his BTC purchases. The LFG-owned wallet last saw inflows on Wednesday. With 30,767 BTC, it is the 29th largest whale BTC.
When the plan comes to fruition, Terra’s reserves will exceed those of any corporate treasury. It will make Kwon and his team the biggest Bitcoin whale.
Bitcoin is undoubtedly a essential store of value for an ecosystem like Terra. Its co-founder Do Kwon understood this well, as evidenced by his last kid transaction. The UST has a new strong argument to seduce cryptophiles with this guarantee in bitcoin. Terra and sound stablecoin continue to grow. The Luna Foundation Guard, created in January 2022, can thus keep accumulating the king of cryptocurrencies.
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