- Terraform Labs made the acquisition via its non-profit business Luna Foundation Group.
- TerraUSD is the fourth biggest stablecoin in market value.
Terra’s choice of BTC for its stablecoin confirms the concept that Bitcoin is a contemporary, digital, and decentralized gold standard, and Terra has vowed to safeguard $10 billion in Bitcoin reserves.
Do Kwon, Terraform Labs’ founder and CEO, said on Wednesday that the Luna Foundation Guard had acquired $230 million worth of bitcoin for Terraform Labs. Moreover, today, Terra has purchased an additional $173 million in Bitcoin, according to the most recent reports. Famous crypto analyst APompliano tweeted about the purchase.
Terra bought another $176 million of bitcoin this morning.
— Pomp 🌪 (@APompliano) April 10, 2022
Inching Closer Towards $10B Worth BTC
Terraform Labs made the acquisition via its non-profit business Luna Foundation Group to bolster its reserve for TerraUSD stablecoin. It was previously said that at least $10 billion worth of bitcoin and other assets would be used to back TerraUSD. Since they are less volatile than other cryptocurrencies, stablecoins — digital currencies tethered to assets like the US dollar — have grown in popularity in the last year.
According to CoinMarketCap, TerraUSD is the fourth biggest stablecoin in market value, behind tether, USDC, and Binance USD. TerraUSD, in contrast to the majority of dollar-based stablecoins, is not backed by the US dollar. Terraform Labs’ bitcoin holdings now total above $1.6 billion, which is a significant step toward the company’s goal of $10 billion.
This is simply the beginning of a wider plan to extend and incorporate their stablecoin further into the cryptocurrency ecosystem for Kwon and Terra. This week, the Terra (LUNA) token touched a record high of $119.18. According to CoinMarketCap, the Terra price today is $93.82 USD with a 24-hour trading volume of $1,533,686,001 USD. Terra has been down 0.49% in the last 24 hours.
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