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- Terra has initiated the purchase of $10 billion worth of Bitcoin (BTC) to utilize it as a reserve asset.
- Terra is now at the 40th position of the largest BTC holders.
- Terra will continue to stack its reserves till it becomes mathematically impossible for idiots to claim de-peg risk UST, founder Do Kwon highlighted.
Terra has started with the buying of $10 billion worth of Bitcoin (BTC) to utilize it as a reserve asset.
According to Blockchair, a blockchain search and analytics engine, Terra purchased about 5,934 Bitcoin (BTC), for around $260 in the time period between 20th and 24th March for its accumulation plan for the asset.
Presently, the network’s total accumulation of the asset is of 15,390.9 BTC which makes its total holdings to be 24,954.95 BTC which equals to around $1,108,077,140.35. Terra is now at the 40th position on the largest BTC holders in the world and plans on wrapping on Cosmos, further depositing them in smart contracts supporting the algorithmic UST stable coin. And apparently, there are more purchases planned for the coming future.
Recently the founder of Terra and Terraform Labs, Do Kwon announced that they are planning on buying Bitcoin worth $10 billion to back its UST stablecoin. This was in respect to its bigger strategy to decouple from centralized stablecoins while developing a more organic and sustainable stablecoin. And this purchase comes following the announcement.
This was quite in the process as recently last month, Luna Foundation raised $1 Billion for the purpose via a private sale of LUNA tokens.
Currently, MicroStrategy holds the largest amount of Bitcoins (BTC). The firm remains to be a publicly-traded company having the largest Bitcoin holdings globally,
Kwon noted that Terra will continue to stack its reserves till it becomes mathematically impossible for idiots to claim de-peg risk UST. He further highlighted a $3 billion investment plan on BTC prior to raising the bar to $10 billion.
Terra ecosystem has been growing in the recent month on the DeFi wave, this might be because of its significant crypto UST stablecoin.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
