Do Kwon, founder of stablecoin-focused altcoin project Terra, replied that “we are already buying” plans to buy $10 billion worth of BTC for reserves. Kwon also emphasized that the stablecoin TerraUSD, backed by over $10 billion in BTC reserves, “will open a new monetary era of the Bitcoin standard.” The founder of Terraform Labs (TFL) explains the project’s plans to accumulate $10 billion in Bitcoin (BTC) to add to its stablecoin reserves.
Terra is a decentralized Blockchain platform specializing in stablecoin issuance. Terra USD (UST) is an algorithmic stablecoin pegged to the value of the US dollar, and the USD value is partially hedged by the equivalent of the native token Terra (LUNA). However, specific details are sparse at this stage. As quoted by Kriptokoin.com, Kwon stated via Twitter on Monday that Terra will not sell the local cryptocurrency LUNA to build up its reserves, with more information coming soon.
Altcoin will add billions to BTC reserve
Kwon also stressed that stablecoin TerraUSD (UST), backed by over $10 billion in BTC reserves, “will open a new monetary era of the Bitcoin standard.” “P2P electronic cash is easier to spend and more attractive to hold,” he added.
“We already have Bitcoin”
Twitter’ When users on Kwon asked what their BTC reserves would be used for, Kwon replied that the funds would be used to stop short-term UST repayments and for a decentralized forex reserve. In a tweet a short time later, Kwon said, “We’re starting to buy BTC, and Twitter is confirming me,” nodding to former Twitter CEO Jack Dorsey. This is the second time this month that Kwon has outlined his plans to strengthen the reserves that support Terra’s stablecoin.
TFL Friday to support the growth of the Terra ecosystem and the sustainability of stablecoins After donating 12 million LUNA (worth about $1 billion at current prices) to the Luna Foundation Guard LFG on Monday, Kwon stated that the project will “continue to increase reserves until then.” According to Coinecko data, the market capitalization of UST is currently $15.14 billion.
38361
