Terra seeks to establish its position among the largest BTC holders in the world. Do Kwon, the CEO of Terra, revealed that the organization has $10 billion in funds to spend.
Terra has bought BTCs worth $1.4 billion making it the 30th largest single holder of the cryptocurrency. The latest purchase provides the company with a holding of 30,727 bitcoins with more purchases in the pipeline.
Terra Founder Do Kwon, in a tweet, declared that Terra Protocol would become one of the largest holders of Bitcoin. Saylor beware, the founder adds.
Microstrategy CEO Michael Saylor is one of the largest BTC whales. Saylor is the owner of 129,218 BTC after its new purchase of 4167 BTC was announced today. Bitcoin Stash of Microstrategy is now valued at approximately $5.9 billion.
Kwon revealed in a Twitter space that Udi Wertheimer hosted the reason behind the purchase of a large cache of BTC. In the space, Kwon said that the decentralized stablecoin UST would change into a hybrid stablecoin, enabling users to exchange $1 worth of UST for $0.99 worth of BTC.
He added that “it is very difficult for somebody in crypto to question Bitcoin. According to the founder, the company had earmarked the sum of $3 billion to purchase BTC in the short term, while the future will see the Luna Foundation Guard (LFG) splurge up to $7 billion in Bitcoin purchases.
The credibility that Bitcoin has earned over the years made it an easy choice for Kwon.
Terra reached the mark of $120, increasing by 6.50%, following the blossoming ecosystem. The asset climbed its all-time highest point at $199 and has continued to experience a swirl of activity with the surge in transaction volumes.
What’s Behind Terra Choosing BTC?
It is no secret that Terra’s founder is a great admirer of Bitcoin; therefore, the company’s latest move is not surprising to industry experts. In a statement once, he said that a new monetary era of Bitcoin standard could be opened through $UST with $10B in $BTC reserves. P2P electronic cash which is a lot simpler and also quite attractive to hold.
Terra now enables UST to be exchanged for BTC natively without any intermediaries by making UST a hybrid stablecoin. On BTC conversion of 10,000 UST, the conversion fee is around $2.58, which is at a negligible rate.
This adds to the discussion of UST’s interoperability, and Erik Voorhees has described the move as being “a giant move forward for crypto.” The company also revealed that by using BTC as an indirect peg, it plans to maintain UST’s peg to the dollar by taking advantage of the flagship currency for maintaining confidence in users.
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.