Just recently, Terra founder Do Kwon hinted at purchasing $3 billion in bitcoin to bolster the protocol’s reserves and according to a number of reports and blockchain analysis, Terra purchased $125 million worth of bitcoin on March 21. The following day, bitcoin’s fiat value jumped to a high of $43,079 per unit and there’s been lots of discussions concerning Terra’s reported bitcoin buy.
Terra Executes $125 million Bitcoin Purchase According to Reports and Blockchain Analysis
Bitcoin.com News covered Do Kwon (Terra founder) and his story on March 21, 2022. hintsAbout buying billions of bitcoin (BTC). After being asked why the project was eying BTC reserves, Do Kwon said: “Bitcoin is the only hard reserve asset that’s been proven out of the digital currencies… It is very difficult for somebody in crypto to question bitcoin.”
The report was followed by the influencer of digital currencies Lark DavisTwitter user Terra (LUNA), which had just made its first purchase, tweeted. “Luna makes its first purchase of bitcoin worth 125 million dollars,” Davis said. The crypto influencer’s tweet has been retweeted over 450 times and has close to 4K likes on Twitter at the time of writing.
It was Tuesday that the $125 million BTC purchase was made trending a great deal on social media. Terra did not mention the purchase of Bitcoin (BTC) but Terra is believed to have transferred $125 Million worth of USDT via a Gnosis safe account.
Dan Held (BTC advocate, director of growth marketing, Kraken) welcomed Terra on the same day. “I welcome all projects and protocols that want to build on Bitcoin/use Bitcoin,” Held tweeted. “Excited to see what [Do Kwon] and the Terra community will do.”
Do Kwon responded to Held’s commentary and replied: “Looking 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]Pre-2016, the Bitcoin community welcomed developers. It’s possible to do the exact same thing now. Developers can use Bitcoin however they want, it only makes BTC stronger.”
Do Kwon, Terra founder Insists Project has $3 billion in funds ready to seed reserves
Both terra (LUNA) and the network’s stablecoin UST have seen significant growth over the last 12 months. Year-to date, LUNA rose 323% to the U.S. Dollar. The stablecoin UST has the fourth largest market valuation at $15.6 million.
Adam Back, Blockstream’s co-founder, and CEO, asked Do Kwon where the multibillions were coming from. Terra’s founder responded by telling the Blockstream executive that the organization has $3 billion in “funds ready to seed this reserve,” but he added that “technical infrastructure (bridges etc) is still not ready yet.”
Furthermore, Terra’s founder 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. “1B was raised recently and 1.2B LFG raised by selling UST against tether, 0.8B or so left to go,” Terra’s founder added.
Do you have any thoughts on Terra’s reported purchase of $125 Million in bitcoin and Do Kwon’s statements? Comment below to let us know what you think.
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