Terra LUNA became the most unusual Bitcoin maximalist, after joining the buying spree in the mode of Tesla, Inc. and MicroStrategy
Terra, the blockchain protocol, has stated that he intends to use BTC and Terra’s LUNA token to relaunch his new TerraUSD (UST) stablecoin. “Have not been following up with the actual figures ‘trigger transactions we generally do that via OTC.” He told Wertheimer of Terra’s BTC acquisition intentions. “But the current clip that we currently have to acquire huge coin is approximately $3 billion and can will increase to that. However out of that 3 billion, most of it we’ve not purchased but.”
At the time of writing, Terra, which had gained notoriety due to intentions for a massive $10 billion BTC allocation, had transmitted Tether (USDT) from a purported wallet worth about $750 million. In an interview over the weekend, Terra co-founder Do Kwon stated that the ultimate aim for funding the firm’s new US dollar stablecoin was $10 billion, but on Tuesday, he reiterated that the final goal was $10 billion.
According to reports, the Singapore-based organization Luna Foundation Guard (LFG) acquired bitcoin for $125 million (2,840 BTC at the current price) early this week, fulfilling a month-old commitment to add BTC as an additional layer of protection for Terra’s decentralized dollar-pegged stablecoin, UST. Tether (USDT), a stablecoin with a market cap of $125 million, was recently transferred from a Gnosis safe address supposedly controlled by Terra, perhaps indicating the purchase.
Terra is a decentralized blockchain platform that specializes in the production of stablecoins. Terra USD (UST) is an algorithmic stablecoin linked to the value of the US dollar, with the USD value maintained in part by an equivalent amount of Terra, the company’s native token (LUNA). When asked what the BTC reserves will be used for on Twitter, Kwon said the cash would be used to backstop short-term UST redemptions as well as a decentralized FX reserve.
Skeptics have pointed out that Terra’s plan to acquire BTC appears to be an attempt to manufacture an excessive number of UST, especially during a bull market. It’s unclear how much risk Terra is willing to assume, but there’s a good chance the collateral will be worth less than all of the UST issued. With a supply of 15.6 billion tokens, Terra USD is already a top 15 coin. The majority of the supply has been added after November 2021, and it has increased fivefold since then.
