Terra creator Do Kwon talked of buying $3 billion in bitcoin to boost the protocol’s reserves, and according to many reports and blockchain analysis, Terra bought $125 million in Bitcoin. The following day, bitcoin’s fiat value soared to a high of $43,079 per unit, prompting a flurry of speculation about Terra’s alleged Bitcoin purchase.
Terra Made a $125 M Bitcoin Purchase
“Bitcoin is the only hard reserve asset that has been proven out of the digital currencies,” Do Kwon added.
It’s quite tough for someone in the crypto community to cast doubt on bitcoin.”
Lark Davis, a digital currency advocate, said that
The Terra (LUNA) project has made its first purchase on Twitter. “Luna makes its first 125 million dollar bitcoin buy.”
The rumored $125 million Bitcoin transaction has gotten a lot of attention on social media. While there has been no official confirmation of Terra’s bitcoin purchase, a Gnosis safe address allegedly controlled by Terra apparently transferred $125 million in USDT to Binance.
Dan Held, a BTC supporter and the director of growth marketing at Kraken, welcomed the Terra community the same day. Held tweeted,
“I encourage all projects and protocols that want to build on Bitcoin/use Bitcoin.” “I’m looking forward to seeing what Do Kwon and the Terra community come up with.”
“Looking forward to building together,” Do Kwon said in response to Held’s comment. Muneeb Ali, the co-founder of Stacks, an open-source Bitcoin smart contract platform, also responded to Held’s Twitter thread. Muneeb Ali tweeted, “This is the way.” “Prior to 2016, the Bitcoin community was open to developers. We can now do the same. Developers are free to utilize Bitcoin whatever they want; it simply strengthens the currency.”
Do Kwon Claims that the Project has $3B in Funds Ready to Seed Reserves
Over the previous 12 months, both terra (LUNA) and the network’s stablecoin UST have seen tremendous growth. LUNA has gained 323 percent versus the US dollar this year, and the stablecoin UST is the fourth-largest USD stablecoin in terms of market capitalization, with $15.6 billion.
Adam Back, the co-founder and CEO of Blockstream, questioned Do Kwon about the billions of dollars. Terra’s creator responded by telling Blockstream’s CEO that the company had $3 billion in “funds available to seed this reserve,” but that “technical infrastructure (bridges, etc.) is still not ready.”
Terra’s founder also detailed how the Terra environment and Luna Foundation Guard raised the funding (LFG). Do Kwon told Back, “It’s either BTC or tether.” Terra’s founder stated, “1 billion was recently raised and 1.2 billion LFG was raised by selling UST against tether, with 0.8 billion or so remaining to go.”
Also Read: Goldman Sachs Trades a Bitcoin Non-Deliverable Option in the Bank’s First OTC Crypto Transaction
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