Terra Founder Plans To Buy $10 Bln Worth of Bitcoins

Terra management has decided to increase the backing of the stablecoin TerraUSD (UST) to $10 bln in Bitcoins.The head of Terraform Labs, Do Kwon, emphasized that the stablecoin TerraUSD (UST) backed by over $10 bln in BTC reserves will open a new monetary era of the Bitcoin standard.

Previously, Terraform Labs sold LUNA coins to buy bitcoins, but this time there are no such plans. It is not yet clear where the additional $9 bln for the purchase of Bitcoins will come from. Kwon stressed that the company has already started buying Bitcoins.

The capitalization of the stablecoin UST exceeded $15 bln. According to CoinMarketCap, at the time of writing, the asset was ranked 14th in terms of capitalization, and the daily trading volume with UST was approximately $600 mln. The other day, Do Kwon accepted a bet from crypto expert Sensei Algod, who stated that the LUNA token would fall below $88 in a year.

Image: Medium