Terra acquires $1.5 billion more Bitcoin
Luna Foundation Guard is among the top 10 BTC holders globally, reportedly possessing around $3.5 million in BTC
By Shashank Bhardwaj
Terra blockchain ecosystem technology and Luna cryptocurrency stacks; Image: Shutterstock
The Luna Foundation Guard (LFG), a Singapore-based NGO affiliated with the Terra Luna ecosystem, has raised an additional $1.5 billion worth of BTC to its holdings, placing it among the top 10 Bitcoin holders in the world.
LFG is a non-profit organisation dedicated to guiding the growth of the Terra network and its ecosystem. The foundation's most recent bitcoin acquisition was made up of two over-the-counter transactions, the first of which was a $1 billion OTC swap with crypto prime broker Genesis for $1 billion in UST, and the second was a $500 million bitcoin purchase from Three Arrows Capital.
With this latest transaction, the Luna Foundation Guard is getting closer to its objective of amassing $10 billion in bitcoin to support Terra's own stablecoin, TerraUSD (UST), which is currently the third-most valuable stablecoin.
According to Terra co-founder Do Kwon, the switch to Bitcoin backing is in the best interests of UST's long-term price stability.
“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard,” said Kwon. “It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe.”
“The jury’s still out on the effectiveness on the subject, but I think it is symbolic in the sense now that we live in a time where there’s excess money printing across the board and when monetary policies highly politicised that there are citizens that are self-organising to try to bring systems back to a sounder paradigm of money,” he added.
LGF isn’t the only company acquiring huge amounts of Bitcoin. MicroStrategy, a publicly-traded business intelligence firm, also increased its reserves by 4,197 BTC in April, bringing its total holdings to 129,218 BTC.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash