Luna Foundation, the organization behind the development of the Terra network and the Terra US - UST stablecoin, bought the equivalent of USD 100 million in bitcoin - BTC hours ago. Thus, around 2,500 BTC more become part of their reserves.
Do Kwon stated that they yearn to become the largest holder of bitcoin
We expanded into the ecosystems of Solana, Avalanche, Ethereum, Polygon. we plan to be everywhere there are developers and users. When we want to expand to these ecosystems, we see that there the trust in the Luna collateral is much less than that within the Terra ecosystem. If a stablecoin has bitcoin as collateral, then nobody questions it because it's the best
---Do Kwon, CEO of Terraform Labs
The current reserves of the Luna Foundation are not only in bitcoin, but also – to a lesser extent – in other cryptocurrencies: USD Coin - USDC, Tether - USDC and terra - LUNA.
Terra US, an algorithmic stablecoin
It is necessary to clarify that bitcoin and the other cryptocurrencies mentioned are part of the Luna Foundation reserve.
The purpose of LUNA is to absorb volatility in UST. For every UST issued, one dollar of LUNA whose price is volatile must be burned. In this way, LUNA maintains UST's parity with the US dollar through an arbitrage and seigniorage mechanism.
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