Terraform Labs founder and CEO Do Kwon said that the Terra project will increase its BTC holdings to $10 billion. They will act as collateral for the UST stablecoin.
In February, it was reported that TerraUSD (UST) stablecoin worth $1 billion would be backed by TerraUSD (UST) stablecoins in bitcoin. However, it seems that the algorithmic stablecoin has become quite popular, and Terra’s management decided to increase the provision to $10 billion.
Previously, Terraform Labs sold LUNA coins to buy bitcoins, but this time there are no such plans. It is not yet clear where another $9 billion will come from to purchase the first cryptocurrency, but Kwon emphasized that the company has already begun buying bitcoins.
“UST with $10 billion in reserves in BTC will usher in a new monetary era of the Bitcoin standard. Peer-to-peer electronic money is easier to spend and more convenient to accumulate. Bitcoin is freedom! wrote Kwon on Twitter.
Note that the capitalization of the stablecoin UST has exceeded $15 billion. Now this asset ranks 14th in terms of capitalization in the CoinMarketCap rating, and the daily trading volume with UST is about $600 million.
The other day, Do Kwon accepted a bet from crypto expert Sensei Algod, who stated that the LUNA token will fall in price below $88 in a year. Do Kwon staked $1 million to raise LUNA’s value to $88 or more.
Source: Bits
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