The founder of the Terra cryptocurrency project, Do Kwon, has officially announced his intention to replenish the reserves of bitcoins, which are collateral for UST stablecoins. According to reports, the startup intends to carry out almost the largest purchase of military-technical cooperation in the entire history of its existence. So, the Terra project, based on the words of Kwon, plans to replenish its bitcoin reserves by $10 billion.
Kwon, who is the founder of two popular crypto projects at the same time - Terraform Labs (TFL) and Ethereum Terra (LUNA), focused the attention of users on the fact that the purchase of BTC has already begun.
“This is not an announcement, we are already buying bitcoins. Our goal will be considered completed as soon as the total value of BTC reaches $10 billion. We are confident that as soon as the reserves that ensure the functionality and security of UST are replenished, we will be able to become the pioneers of a new bitcoin monetary era,” the developer emphasized.
Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding
Terra is a decentralized blockchain platform that mines UST stablecoins. UST, by the way, is a stable digital asset, the value of which is pegged to the US dollar. As you know, in addition to the US fiat currency, BTC, as well as the project’s tokens, LUNA, act as additional reserve collateral for UST.
In this context, it is worth noting that a few days earlier, a rumor began to circulate on the Web that Terra intended to sell most of the LUNA tokens to replenish reserves. Already on March 14, the founder of the project denied this information by making an official statement on his Twitter account.
In conclusion, it should be emphasized that this is the second such event in the last month, aimed at strengthening Terra's reserves. So, about a week ago, Kwon reported that the fund TFL donated $12 million to his crypto project.