Terra Labs now holds about 1.4 billion in Bitcoin in its reserve, which serves to back the project’s algorithmic stablecoin, UST.
Shortly after the founder of landDo Kwon will announce his intentions to back the UST stablecoin with reserves in Bitcoin (BTC), the market is closely watching various whale moves.
According to reports, the wallet earth (not officially confirmed) just received a 2,943 BTC deposit valued at around $139.2 million. The Twitter account that tracks large transactions blockchain, Whale Alertreported the purchase, to which Kwon responded with an emoji suggesting that it is an address under his domain.
— Do Kwon ???? (@stablekwon) March 30, 2022
as reported DailyBitcointhe founder of earth shared a week ago its intention to acquire USD $10 billion in Bitcoin to support the project’s algorithmic stablecoin, TerraUSD (UST). This would make UST backed by both LUNA and major cryptocurrency reserves.
Unlike other stablecoins, USDT is not backed by cash reserves to maintain its peg to the dollar. Instead, it is algorithmically tied to LUNA, the native token of Earth. Each UST is issued by burning $1 worth of LUNA, which decreases the supply of that currency as they are produced stablecoins.
Short-term goal: USD $3 billion in BTC
In a thread tweet a few days ago, Kwon indicated that the short-term goal is to buy 3 billion dollars in Bitcoin to start building UST reserves. The founder said that, to meet this goal, Moon Foundation Guard (LFG) had already collected USD $2.2 billion to start buying the asset.
The collection was carried out through over-the-counter sales of LUNA, as revealed by the leader of the platform. It should be noted that LFG is a Singapore-based non-profit organization working on the blockchain. land.
As part of the announced plans, earth has been accumulating large amounts of Bitcoin. The wallet address identified as being from the project made its first purchases on March 22 for around 1,500 bitcoin, currently valued at $70.9 million. Although a Twitter crawler identified that the wallet has been receiving BTC since January.
According BitInfoChartsthe wallet injected for the first time almost close to 10,000 bitcoin On January 21. He then made steeper purchases in March and hasn’t sold a single satoshi since. At the time of editing, the address It holds a total of 30,727 BTC, worth $1.4 billion.
The figures assume that earth he still has a few substantial purchases of at least $1.5 billion more in BTC to reach his short-term goal.
Terra Purchases Boost Bitcoin and LUNA Prices
As a result of the latest acquisitions, the project is positioning itself as one of the biggest whales in the crypto space. According to data from BitcoinTreasuriescited by Cointelegraph, Terraform Labs will soon elude the electric car maker Tesla as the second largest fork of Bitcoin. Next on the list is MicroStrategywhich currently holds more than 120,000 BTC.
The aggressive strategy to back UST with reserves of Bitcoin it also appears to be having a bullish effect on the market. The price of the main cryptocurrency has skyrocketed in recent days to regain $48,000. In general, the accumulation trend of land seems to be seeking a positive mood among the merchants of Bitcoinwho see the latest purchases with good omen.
Bitcoin It has not been the only favored one. The project’s native cryptocurrency, LUNA, also experienced a recent bull run, after hitting a new all-time high of $108.9 on Monday this week.
Article by Hannah Estefanía Pérez / DailyBitcoin
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