- According to Kwon, the UST’s capacity to maintain its dollar peg would increase.
- The Luna Foundation Guard began purchasing Bitcoin on January 26.
Bitcoin and the rest of the crypto market had a great start to the week as long-term investors continued to build their positions. On the other hand, Terra is continuing to build up its Bitcoin holdings as part of its plan to support the UST stablecoin.
The Terra Foundation has purchased around $1.5 billion worth of bitcoins for 2022 as of Monday, March 28. In addition, Terra has said that it will store $10 billion in Bitcoin in its vaults. Terra blockchain’s creator, Do Kwon, verified this to Bloomberg News. According to data, the Terra Foundation’s Bitcoin address acquired a total of $27,784.96954740 in Bitcoins.
Terra has $3 billion in money available for BTC purchases to support the UST stablecoin, according to Kwon last week. According to its Bitcoin addresses, the Luna Foundation Guard began purchasing Bitcoin on January 26.
Strongest Digital Reserve Asset
According to Kwon, the UST’s capacity to maintain its dollar peg would increase if it had a Bitcoin reserve. Terra will be able to use this in the sudden increase in demand for UST redemption.
Kwon made the following statement:
“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset. UST is going to be the first internet native currency that implements the Bitcoin standard as part of its monetary policy.”
When Terraform Labs CEO Do Kwon affirms that they would keep adding stack after stack of bitcoin to their reserves, it might mean that Terra’s own cryptocurrency LUNA is poised to reach new highs. Indeed, according to Kwon, plans are in place to make the group the largest BTC holder globally, behind Satoshi Nakamoto.
