‘We’re already buying’: Terra founder plans to obtain $10B BTC for reserves

Do Kwon, founder of Terraform Labs and Terra competitor Ethereum (LUNA), has laid out plans to acquire a staggering $10 billion of Bitcoin (BTC), to increase the project’s stablecoin reserve.

Terra is a blockchain platform decentralized that specializes in stablecoin mining. Terra USD (UST) by Its Terra is an algorithmic stablecoin that is pegged to the U.S. Dollar value. The USD value can be partly maintained through an equivalent amount of its native token LUNA.

Kwon shared via Twitter that Terra would not sell its native asset LUNA in order to build its reserves. More information will be available soon.

Kwon was also bullish in stating that TerraUSD (UST), its stablecoin, is backed by more than $10 billion in BTC reserves and will “open a new monetary era for the Bitcoin standard.”

He added that P2P electronic money is more convenient to use and more appealing to keep.

A new era in the Bitcoin standard will be opened by $UST and $10B+ in $BTC reserve. It is more convenient to use and less expensive to keep #btc as P2P electronic money
— Do Kwon (@stablekwon), March 14, 2022

Cointelegraph reached Kwon to find out if the plans had been in motion or if it was just an idea at this stage. The founder replied:

“I don’t get the distinction. We’re already buying Bitcoin.”

Twitter users asked Kwon about the purpose of the BTC reserve funds. He replied that they will be used to support short-term UST redemptions as well as a decentralized forex reserve.

Kwon wrote shortly afterwards in a tweet that “We start purchasing BTC and Twitter verifies my identity, I see Jack”. This was a reference to Jack Dorsey who is a Bitcoin bull, and the former CEO of Twitter.

Related: LUNA flips Ethereum to become the second largest network for staked Value

Kwon has announced plans to strengthen the reserves that support Terra’s stablecoin for the second time in this month.

TFL donated 12,000,000 LUNA to Luna Foundation Guard LFG Friday, which is approximately $1 billion at current prices. This was to support the Terra ecosystem’s growth. Kwon explained that the project would continue to grow “until it becomes mathematically impossible” for idiots to claim the de-peg risk of UST.

Coingecko data shows that the current marketcap for UST is $15.12 billion.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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