Terra Co-founder Do Kwon Announces Addition of $100M Worth Bitcoin (BTC)
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- Earlier this week, Terra completed a $176 million acquisition.
- LFG purchased Avalanche (AVAX) coins for $100 million last week.
Announcing the purchase of another $100 million in Bitcoin, Terraform Labs co-founder Do Kwon took to Twitter. 42,406 Bitcoins worth $1.7 billion are presently in the LFG’s Bitcoin wallet. Earlier this week, Terra completed a $176 million acquisition. With the help of 3AC and Jump Crypto, the organization raised $1 billion in a private token sale in late February. In addition, an enormous Bitcoin-based reserve fund was established to maintain the native UST stablecoins dollar peg.
Market Volatility
Stablecoins like Tether (USDT) and Circle’s USD Coin (USDC), the two most popular, have their price stability guaranteed by major parties. Terra’s UST, on the other hand, is entirely decentralized. Therefore, users may create UST tokens by destroying LUNA tokens to maintain the most significant algorithmic stablecoins value at $1.
For example, Iron Finance’s (IRON) algorithmic stablecoin lost its peg and plummeted to near zero in June of this year. Due to market volatility, the UST has also fallen below $1 on several previous occasions. However, because of the enormous Bitcoin reserve, the budding stablecoin should be able to weather any significant market drop.
Terra’s large purchases can no longer support the price of Bitcoin. Token of the largest market capitalization is trading below the $40,000 mark. To broaden its portfolio, LFG purchased Avalanche (AVAX) coins for $100 million last week. According to CMC, the Terra price today is $87.22 USD with a 24-hour trading volume of $2,099,479,930 USD. Terra has been up 1.86% in the last 24 hours.
Cryptocurrency
