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CryptocurrencyTerra Luna Foundation acquires over $1 billion worth of Bitcoin for stable...

Terra Luna Foundation acquires over $1 billion worth of Bitcoin for stable coin backing

Do Kwon’s Luna Foundation has purchased about 24,954.96 BTC for its programmable stable coin reserves. According to Blockchain Explorer, the total cost of this transaction is over $1.1 billion.

Do Kwon, the creator of Terraform Labs and Terra, an Ethereum layer one blockchain rival, is following through on its promise to collect $10 billion in Bitcoin (BTC) to add to the project’s stable coin reserves. With a $1.1 billion accumulation, we anticipate another $8.9 billion BTC buy in the long run.

According to Bit Info Charts, the wallet address has gathered Bitcoin since January 2022 and has dramatically boosted its holding since March 22nd, 2022. As a result, the wallet address is presently ranked number thirty-three on the list of the wealthiest Bitcoin wallets.

What you need to know about Terra Luna

Terra has built a compelling DeFi ecosystem, primarily based on its stable coin UST, in what seems to be a brief period. Nevertheless, it is currently the top blockchain in staked value, ahead of Solana, Ethereum, Cardano, Avalanche, and others.

The Luna Foundation Guard gathered $1 billion from crypto-focused venture investors to create a Bitcoin reserve for Terra’s UST stable coin late last month. In addition, Terra LUNA tokens were sold privately to raise funds.

Do Kwon said that the foundation would buy $3 billion soon and the rest $7 billion at a later date, with no precise dates specified.

Many in the crypto industry have questioned Terra’s Bitcoin acquisition. Many have wondered whether acquiring the flagship digital currency rather than supporting an asset inside its ecosystem was the proper decision.

Many have objected, with one Twitter user, CryptoKidDonni1, stating that it is “a bet to safeguard their ecosystem by owning less correlated assets that have underlying worth if their ecosystem were to collapse.” Most currencies were formerly backed by gold to ensure their value (gold standard), and Luna is attempting to recreate (something) similar with Bitcoin (Bitcoin Standard).”

In his email, Anthony Pompliano said, “the decision to back UST with Bitcoin establishes a symbiotic connection, allowing UST to have trust that the most superior collateral backs the asset.”

Many have ascribed the recent increase in Bitcoin’s price on the Terra Foundation’s recent purchasing binge. Bitcoin is now trading around $44,700, nearing breaking past the $45,000 barrier zone.

Terra luna has built a compelling DeFi ecosystem, primarily based on its stable coin UST, in what seems to be a brief period. It is currently the top blockchain in terms of staked value, ahead of Solana, Ethereum, Cardano, Avalanche, and others.

The Luna Foundation Guard gathered $1 billion from crypto-focused venture investors to create a Bitcoin reserve for Terra’s UST stable coin late last month. In addition, Terra’s LUNA tokens were sold privately to raise funds.

Do Kwon said that the foundation would buy $3 billion soon and the rest $7 billion at a later date, with no precise dates specified.

Many in the crypto industry have questioned Terra’s Bitcoin acquisition. Many have wondered whether acquiring the flagship digital currency rather than supporting an asset inside its ecosystem was the proper decision.

Many have objected, with one Twitter user, CryptoKidDonni1, stating that it is “a bet to safeguard their ecosystem by owning less correlated assets that have underlying worth if their ecosystem were to collapse.” Most currencies were formerly backed by gold to ensure their value (gold standard), and Luna is attempting to recreate (something) similar with Bitcoin (Bitcoin Standard).”

In his email, Anthony Pompliano said, “the decision to back UST with Bitcoin establishes a symbiotic connection, allowing UST to have trust that the most superior collateral backs the asset.”

Many have ascribed the recent increase in Bitcoin’s price on the Terra Foundation’s recent purchasing binge. Bitcoin is now trading around $44,700, nearing breaking past the $45,000 barrier zone.

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