Recently, Terra founder Do Kwon hinted at buying $3 billion in bitcoin to bolster the protocol’s reserves and according to a number of reports and blockchain analysis, Terra bought $125 million worth of bitcoin on March 21. The next day, bitcoin’s fiat value jumped to a high of $43,079 per unit and there has been […]
Recently, Terra founder Do Kwon hinted at buying $3 billion in bitcoin to bolster the protocol’s reserves and according to a number of reports and blockchain analysis, Terra bought $125 million worth of bitcoin on March 21. The next day, bitcoin’s fiat value jumped to a high of $43,079 per unit, and there has been much discussion about Terra’s reported bitcoin purchase.
Reports and Blockchain Analysis Suggest $125 Million Bitcoin Purchase Conducted by Terra
On March 21, 2022, Bitcoin.com News reported on Terra founder Do Kwon and his hints on buying billions in bitcoin (BTC). When asked why the project was looking at the BTC reserves, Do Kwon said: “Bitcoin is the only hard reserve asset that has been proven from the digital currencies… It is very difficult for anyone in crypto to question bitcoin. Pull.”
Following the report, the digital currency influencer Lark Davis tweeted that the Terra (LUNA) project had made its first purchase. “Luna is making his first $125 million purchase of bitcoin,” Davis said. The crypto influencer’s tweet has been retweeted over 450 times and has nearly 4K likes on Twitter at the time of writing.
On Tuesday, the alleged $125 million in BTC purchase trending a lot on social media. While there has been no official mention of Terra’s purchase of bitcoin (BTC), a secure Gnosis address has reportedly transferred Terra’s ownership of $125 million USDT to Binance.
On the same day, BTC attorney and the director of growth marketing at Kraken, Dan Held, welcomed the Terra community. “I welcome all projects and protocols that want to build on / use Bitcoin”, Held tweeted† “Excited to see what [Do Kwon] and the Terra community will do it.”
Do Kwon responded to Held and .’s comment replied: “I look forward to building together.” The co-founder of Stacks, an open-source smart contract platform for Bitcoin, Muneeb Ali, also responded to Held’s Twitter thread. “This is the way,” Muneeb Ali tweeted† †[The] The Bitcoin community welcomed developers before 2016. We can now do the same. Developers can use Bitcoin however they want, it just makes BTC stronger.”
Terra Founder Do Kwon Insists Project Has $3 Billion In Funds Ready To Sow Reserves
Both terra (LUNA) and the network’s stablecoin UST have seen significant growth over the past 12 months. Year-to-date, LUNA is up 323% against the US dollar and the stablecoin UST is the fourth largest USD stablecoin by market valuation at $15.6 billion.
On Tuesday, Blockstream co-founder and CEO Adam Back asked Do Kwon where the billions of dollars came from. The founder of Terra responded by telling the Blockstream executive that the organization has $3 billion in “funds ready to seed this reserve,” but added that “technical infrastructure (bridges, etc.) is still not ready.”
Furthermore, the founder of Terra also explained how the funds were raised by the Terra ecosystem and Luna Foundation Guard (LFG). “It’s BTC or tether,” Do Kwon told Back on Tuesday. “Recently, $1 billion was raised and LFG 1.2 billion was raised by selling UST against tether, about $0.8 billion to go,” added Terra’s founder.
What do you think of Terra’s reported $125 million bitcoin purchase and Do Kwon’s statements? Tell us what you think in the comments section below.