 has revealed plans to collect $10 billion worth of Bitcoin to add to the project’s stablecoin reserves.){kind=link}
Do Kwon, the CEO & founder of Terraform Labs (TFL) and Ethereum competitor Terra, has revealed plans to accumulate a whopping $10 billion worth of Bitcoin (BTC) to add to the project’s stablecoin reserves.
$UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard.
P2P electronic cash that is easier to spend and more attractive to hold #btc
— Do Kwon 🌕 (@stablekwon) March 14, 2022
Terra is a decentralized blockchain platform that specializes in stablecoin minting. Its native stablecoin Terra USD is an algorithmic pegged to the value of the United States dollar, with the USD value partly maintained via an equivalent amount of its native token Terra (LUNA).
Kwon also bullishly emphasized that TerraUSD backed by $10 billion-plus in Bitcoin reserves will “open a new monetary era of the Bitcoin standard”.
Bitcoin is fungible freedom.
And $UST makes that freedom easier to spend and more attractive to hold ❤️
— Do Kwon 🌕 (@stablekwon) March 17, 2022
Kwon said on Twitter that Terra will not sell its native asset LUNA to build its reserves and that more information is coming soon.
Kwon responded to a query on Twitter on what the BTC reserves will be used for, he said that the funds will be used to backstop short-term UST redemptions and for a decentralized forex reserve.
We start buying #BTC and Twitter verifies me 🤔
I see you @jack 😉
— Do Kwon 🌕 (@stablekwon) March 17, 2022
In another Tweet, Kwon also said, “We start buying BTC and Twitter verifies me, I see you Jack,” in a nod to Jack Dorsey, who is a Bitcoin bull and former CEO of Twitter.
After Terraform Labs (TFL) donated 12 million LUNA worth $1 billion to the Luna Foundation Guard LFG on Friday to support the growth of the Terra ecosystem and the sustainability of its stablecoin, Kwon outlined that the project will keep “growing reserves until it becomes mathematically impossible for idiots to claim de-peg risk for UST.”
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