The Luna Foundation Guard, the dad or mum group behind the Terra blockchain, has bought one other $1.5 billion in Bitcoins. The current buy comes when Bitcoin (BTC) is down by 5% at press time and buying and selling at round $37,000.
The newest BTC buy brings the Luna Foundation Guard nearer to its aim of buying $10 billion price of Bitcoins. Do Kwon, co-founder and CEO of Terraform Labs, stated that he expects to achieve this aim by the tip of Q3 2022.
Just to get a perspective, Luna has already acquired $3.5 billion in Bitcoins and holding them in its reserve. The motive behind constructing the Bitcoin reserve is to bolster the energy of Luna’s native stablecoin TerraUSD (UST). Kwon stated:
“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard. It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe.”
Taking a jibe on the centralized establishments, Kwon provides that how the present cash market appears distorted with extra cash printing and extremely politicized financial insurance policies. “The jury’s still out on the effectiveness on the subject, but I think it is symbolic in the sense now that we live in a time where there’s excess money printing across the board and when monetary policies highly politicized that there are citizens that are self-organizing to try to bring systems back to a sounder paradigm of money,” he added.
TerraUSD (UST) Stablecoin Enters Top 10
TerraUSD (UST) the native stablecoin of Terraform Labs has now entered the highest ten crypto-list with a market cap of $18.6 billion. It can be the third greatest stablecoin after USDT and USDC.
For the current Bitcoin acquisition, the Luna Foundation closed a $1 billion OTC swap with crypto prime dealer Genesis towards $1 billion price of UST. It purchased the remainder of $500 million price of BTC from crypto hedge fund Three Arrows Capital. Josh Lim, head of derivatives at Genesis Global Trading stated:
“Because we’re more of an institutional counterparty that they’re familiar with – trading with more on the spot, OTC side of things – we’re able to source this in large size and then parcel it out to people”.
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