Terra (CRYPTO: LUNA) co-founder Do Kwon said he plans to add $10 billion worth of Bitcoin (CRYPTO: BTC) to the project’s reserves.
What Happened: Kwon announced the move on Twitter (NYSE:TWTR), saying that Terra having huge Bitcoin reserves will “open a new monetary era of the Bitcoin standard.”
$UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard.He added that the reserve Bitcoin would be used to backstop short-term redemptions of TerraUSD (CRYPTO: UST) — the U.S.-dollar value pegged stablecoin of the Terra blockchain — and for a decentralized foreign exchange reserve.P2P electronic cash that is easier to spend and more attractive to hold #btc
— Do Kwon (@stablekwon) March 14, 2022
Backstop shortterm $UST redemptionsFurther, Kwon said the blockchain platform will not sell LUNA to build the Bitcoin reserves.Decentralized forex reserve
— Do Kwon (@stablekwon) March 14, 2022
See Also: How to Buy Terra (LUNA)
Why It Matters: Last week, Kwon had announced that Terraform Labs (TFL) donated 12 million LUNA to the Luna Foundation Guard (LFG) and said that the project will keep growing reserves to become “mathematically impossible for idiots to claim de-peg risk for TerraUSD.”
If there is any confusion left at this point, we will keep growing reserves until it becomes mathematically impossible for idiots to claim depeg risk for $UST $UST is mighty https://t.co/6xCDPWJUTXIn early March, it was reported that Terra surpassed Ethereum to emerge as the second-largest staked asset among major cryptocurrencies. LUNA is the second-largest DeFi protocol behind Ethereum.— Do Kwon (@stablekwon) March 11, 2022
Price Action: LUNA is down 0.2% during the past 24 hours, trading at $88.08 at press time.
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