Terra’s LFG Jumps Into Top 10 Biggest Bitcoin Whales With An Additional $1.5 Billion BTC Purchase ⋆ ZyCrypto

Luna Foundations BTC Stash Nears Teslas — But Is Terras Buying Enough For BTC To Go Higher

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Several experts believe that traditional finance will use Bitcoin as a reserve currency in the future. While institutions like the Swiss National Bank remain on the fence, a new generation of stablecoins is making the leap; the Luna Foundation Guard, the group behind the UST token, nearly doubled their Bitcoin reserves on Thursday.

LFG buys $1.5 billion BTC

The Luna Foundation Guard confirmed a report on CNBC in a tweet today that it had purchased an additional 37,863 BTC (about $1.5 billion). According to LFG’s records and tweets, the group bought the amount in two transactions. First, the LFG reportedly entered into a $1 billion OTC swap with crypto prime broker Genesis for $1 billion to UST, and second, it bought $500 million worth of BTC from crypto venture capital firm Three Arrows Capital.

The latest purchase by the organization takes it from just over 40,000 BTC to about 80,394 BTC. The LFG jumps in the list of top 10 Bitcoin holders. It brings the group closer to its goal of $10 billion in Bitcoin in reserve, a goal nearly twice that of Michael Saylor’s MicroStrategy at current exchange rates.

The Luna Foundation Guard is the group behind the Terra Blockchain, the issuers of dollar-pegged stablecoin UST and LUNA. In March, blockchain co-founder Do Kwon revealed that the network would be taking a different approach to stablecoin reserves. Do Kwon revealed that UST would be backed by $10 billion worth of Bitcoin. Since it started buying Bitcoin, the UST token has seen a massive surge in value, dethroning Binance’s BUSD as the 3rd most valuable stablecoin.

“For the first time, you start to see a pegged currency trying to observe the bitcoin standard,” said Terra’s Do Kwon. “It’s a strong directional bet that it’s going to be a winning recipe to keep a lot of those foreign reserves in the form of a digital native currency.”

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The purchase brings the LFG’s BTC reserve value to approximately $3.5 billion, $6.5 billion away from their target and just over $1.5 billion away from Michael Saylor’s MicroStrategy. Notably, the LFG also has over $100 million in Avalanche’s AVAX in reserves.

Tron takes a signal from LUNA

LUNA’s argument that a stablecoin must be truly decentralized if it is backed by a crypto asset seems to have attracted some attention and supporters as Tron’s Justin Sun also announced that his network’s stablecoin would follow the same route. Known for being able to draw attention to his projects, Sun revealed that Tron would be backing its decentralized USD (USDD) with $10 billion worth of Bitcoin and other cryptocurrencies.

Tron DAO plans to release the USDD coin on Thursday in conjunction with their partners. Like UST, which is stabilizing LUNA, the TRX token will stabilize the USDD coin.

Despite the buying pressure introduced by whales like the LFG, Bitcoin has seen its worst daily decline since January. Bitcoin is down 9% in the past 24 hours and is trading around the price of $36,559, with experts split on the next direction in the price of the crypto asset.

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