Terra’s native cryptocurrency LUNA could be preparing to touch new all-time highs as Terraform Labs CEO Do Kwon confirms that they will continue adding stacks of bitcoin to their reserves. In fact, Kwon claims the plans are set for the organization to become the largest BTC holder in the world after the mysterious bitcoin creator Satoshi Nakamoto.
Terra On Course To Become Bitcoin’s Biggest Holder
Terra, the fast blockchain taking on Ethereum, has stolen the spotlight in recent days after the Luna Foundation Guard (LFG) outlined plans to purchase billions worth of bitcoin as an additional security layer for its UST stablecoin.
The Terra wallet amassed an additional 2,943 BTC on Wednesday, bringing its total stash to 30,728 BTC worth around $1.45 billion. Notably, the LFG has not sold a single satoshi and has effectively surpassed the initial target of $1 billion.
Do Kwon recently stressed that the long-term target is to build a gargantuan $10 billion bitcoin fund to serve as some sort of a release valve for UST redemptions during market drawdowns. Terra’s UST is currently the fourth-biggest stablecoin in the market. It’s pegged 1:1 to the United States dollar and its creation is facilitated by burning LUNA. LFG has been using Tether (USDT) to buy the bitcoin reserves.
The Terra founder said the ultimate goal is to become the largest single bitcoin holder in the world. Currently, this honor is believed to belong to BTC’s pseudonymous inventor, Satoshi Nakamoto.
Terra has been loading up on BTC fast and steadily and could soon overtake Tesla’s holdings, catching up with MicroStrategy after.
Bitcoin Buys Might Send LUNA Moon-Bound
LUNA has been on fire in recent weeks since LFG announced plans to obtain $10 billion BTC for reserves. The ninth-ranked cryptocurrency has essentially been setting record high after record high. And as Kwon aims to ensure his Bitcoin coffers rival that of Satoshi, LUNA could be primed to fly higher.
To put it into perspective, building a BTC reserve is a brilliant move that ensures that the fluctuations of UST during high market volatility are negligible. More stability means more demand for UST. This in turn slashes LUNA’s supply significantly and could act as rocket fuel for the token. LUNA is changing hands at $103 as of publication time, a 3.86% loss on the day.