Despite the significant dip in the bitcoin (BTC) price yesterday, the Lunda Foundation Guard (LFG) is keeping its promise. It recently bought back a large amount of bitcoins in support of the terraUSD (UST) stablecoin. It concerns no less than $1.5 billion in bitcoin, according to the American CNBC

Terra buys a lot of bitcoins again

The founder of crypto project Terra, Do Kwon, aims to buy a total of $10 billion worth of bitcoin. With this, it aims to support the value of UST. This huge BTC reserve is supposed to keep the value of UST at $1 even when demand rises or falls.

Recent reports indicate that the project is well on its way to reaching that $10 billion mark. It bought $1.5 billion worth of bitcoin. $1 billion of that was settled through a over the counter (OTC) swap with $1 billion in UST. The remaining $500 million was purchased from crypto hedge fund Three Arrows Capital.

Terra is now one of the biggest bitcoin whales

In total, there is now $3.5 billion worth of bitcoin in the wallet that supports the UST stablecoin. This makes the wallet one of the 10 largest bitcoin wallets that currently exist.

Whether the UST story will ultimately be a success remains to be seen, according to Do Kwon. He does state that it is in any case a very symbolic development, he explains to CNBC:

“There is no consensus yet on the effectiveness of this topic, but I think it is symbolic in the sense that we are now living in a time where there is excess printing across the board and monetary policy is highly politicized that there is citizens who are self-organizing to try to bring systems back to a healthier paradigm of money,”

In the meantime, UST has already risen nicely in the ranking of the largest cryptocurrencies. Recently, it even overtook Binance’s stablecoin. As a result, UST is now in the top 10 largest cryptocurrencies.


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