- Do Kwon, founder of Terra(LUNA) and Terraform Labs (TFL), has revealed plans to collect $10 billion worth of Bitcoin (BTC) for adding to the projects’ stablecoin reserve.
- The founder also highlighted that its stablecoin TerraUSD (UST), backed by more than $10 billion in BTC reserves, will be the start of a new monetary era of the Bitcoin standard.
- On being asked how these funds will be utilized, Kwon disclosed that these funds would be used for a decentralized forex reserve and to backstop short-term UST redemptions.
Do Kwon, the founder of Terraform Labs (TFL) and Terra (LUNA), the Ethereum competitor, has disclosed the plans to acquire Bitcoin (BTC) worth $10 billion to add to the stablecoin reserve of the project.
A decentralized blockchain protocol, Terra has the expertise in stablecoin minting. Terra USD (UST) is its stablecoin pegged to the value of the U.S. dollar. The USD value is partly maintained through an equivalent amount of LUNA, its native token.
The details aren’t disclosed at the moment, although, on March 14, in a tweet, Kwon revealed that in order to build its reserves, Terra would not sell its native asset, LUNA. Moreover, further details will be disclosed later.
The founder is confident that $10 billion in BTC reserves backing its stablecoin TerraUSD(UST) will be the beginning of a new monetary era of the Bitcoin standard.
He further says that P2P electronic cash is easier to spend and quite attractive to hold.
‘We’re already buying’: Terra Founder.
In a statement, Kwon, on being asked if the plans are already being implemented or are simply an idea budding at this phase, said he does not see any “distinction,” further revealing that they are buying Bitcoin.
Some Twitter users also asked about Kwon’s plans to use these BTC reserves; he revealed that the funds would be utilized for a decentralized forex reserve and backstop short-term UST redemptions.
Soon, another tweet of Kwon came, stating, “We start buying BTC, and Twitter verifies me, I see you, Jack,” addressed to former CEO of Twitter and Bitcoin bull Jack Dorsey.
It is also interesting to note that it is the second time in this month that Kwon highlighted the plans to secure the reserves backing Terra’s stablecoin.
On Friday, following the TFL’s donation of 12 million LUNA (worth around $1 billion at current prices) to the Luna Foundation Guard for backing the expansion of the Terra ecosystem and the sustainability of its stablecoins, Kwon pointed out that the project will keep expanding reserves “until it becomes mathematically impossible for idiots to claim de-peg risk for UST.”
At the time of writing, the market cap of UST stands at $15,077,207,506 billion, as per the data from coinmarketcap.
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