Terra Labs currently houses at least 1.4 billion in Bitcoin, which helps to support the project’s algorithmic stablecoin, UST.
After Terra founder Do Kwon revealed his desire to back the UST stablecoin with Bitcoin (BTC) reserves, the market observed many whale moves.
According to a series of reports, the Terra wallet has just received a deposit valued at 2,943 BTC, which equals approximately $139.2 million. The Twitter profile in charge of following the behavior of large Blockchain transactions, Whale Alert, highlighted the acquisition. Kwon answered with an emoji expressing that it was an address under his complete control.
According to various media outlets, About a week ago, the founder of Terra shared his plans to acquire $10 billion worth of Bitcoin to aid the project’s algorithmic stablecoin, TerraUSD (UST). This action would make UST supported by both LUNA and significant crypto reserves.
Unlike other stable coins, USDT does not receive support from reserves holding cash to keep that asset pegged to the dollar. Instead, it gets connected to LUNA, Terra’s native asset. Each UST gets handled by burning $1 worth of LUNA, making the supply of that coin decline as more stablecoins get created.
USD 3 Billion in BTC
In a tweet post made a few days ago, Kwon highlighted that the short-term goal is to acquire at least $3 billion worth of Bitcoin and start strengthening UST reserves. The founder expressed that Luna Foundation Guard (LFG) had already gathered $2.2 billion to begin purchasing the asset to achieve this goal.
The collection took effect through over-the-counter sales of LUNA tokens, as revealed by the leader behind the network. On the other hand, LFG is a non-profit organization based in Singapore that operates on the Terra blockchain.
Terra has been gathering massive amounts of Bitcoin. The project’s wallet address got identified for having its first acquisition on March 22 with 1,500 bitcoins, currently valued at $70.9 million. However, a Twitter user determined that the wallet had received these currencies since January.
According to BitInfoCharts, the wallet that got injected first possessed almost 10,000 bitcoins on January 21. The entity then consolidated another series of purchasing operations in March and hasn’t put for sale a single satoshi. The address holds 30,727 BTC, worth $1.4 billion as of press time.
The amounts imply that Terra still has a few significant acquisitions estimated at $1.5 billion more in BTC to achieve the goal the entity pursues.
A Boost in Bitcoin and LUNA Prices
As a result of the latest acquisitions, the project ranks itself as one of the most prominent whales in the digital world. According to data collected by BitcoinTreasuries, and highlighted by outlets like Cointelegraph, Terraform Labs will soon bypass electric car maker Tesla as the second-largest Bitcoin holder. The next position on the list goes for MicroStrategy, which currently houses over 120,000 BTC.
The ruthless plan to support UST with Bitcoin reserves also appears to be creating a sudden effect on the market. The price of the leading cryptocurrency reached new peaks in recent days to regain $48,000. Overall, Terra’s purchasing trend seems to be bringing positive sentiment among Bitcoin traders, who are encouraged by the latest acquisitions.
By: Jenson Nuñez
