Terra (LUNA) is busy buying bitcoin (BTC)! In recent days, the project systemically bought BTC to replenish the reserves of its UST stablecoin. By now, the reserves are said to be worth more than $1 billion. That appears from dates from Bitinfo charts.
Terra takes action and buys bitcoins
It was no secret that Terra was going to buy bitcoin. The project’s founder, Do Kwon, has repeatedly spoken out about his desire to build $10 billion in bitcoin reserves. The purpose of this is to keep the value of UST, a cryptocurrency that must maintain a stable value of $1, stable. He previously stated that this will usher in “a new monetary era”.
And that buying bitcoin is now actually happening. Since March 22, bitcoins have been systematically added every day to the wallet address linked to the Luna Foundation by analysts and experts. That started on March 22 with the purchase of nearly 3,000 bitcoins.
The Bitcoin address (bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q) has deposited nearly 24,955 BTC worth more than $1.1 billion. Market suspects it is the address of Luna Foundation, which has raised $2.2 billion for its bitcoin reserves. https://t.co/ex7yM1CWx0
— Wu Blockchain (@WuBlockchain) March 27, 2022
Since March 22, 13,900 bitcoins have already flowed into the wallet. The wallet would now hold $1.1 billion in bitcoin. According to analysts, bitcoin purchases are one of the reasons that the BTC price has accelerated in recent days.
UST stablecoin gains momentum
The terraUSD (UST) stablecoin appears to be benefiting from the developments. Market cap gained momentum early last month and has maintained momentum so far as seen in the chart below.
Earlier news reported that Kwon has entered into a bet worth millions of dollars. The bet revolves around the value of LUNA, which some believe may collapse due to the way the algorithmic stablecoin works. Kwon obviously disagrees and placed the bet on March 14.
