Terraform Labs CEO, Do Kwon, has announced plans by the network to amass billions worth of bitcoins as reserves for its UST stablecoins, causing native tokens to surge.
Kwon notes that the long-term strategy of Terra is to create a pool of $10 billion bitcoin fund to be a reserve for UST redemptions during bearish momentums. The blockchain has been buying the reserves using Tether.
Terra purchased more than 2,943 bitcoins on Wednesday Through the Luna Foundation Guard to make its total holding 30,728 bitcoins worth about $1.45 billion.
Terra’s UST is the fourth largest stablecoin in the market, backed by the USD at a 1:1 ratio through a token burn.
LUNA has surged to claim all-time highs since the network announced plans to amass $10 billion bitcoins in reserves. The token is currently trading at $103 after a 3.86% dip in the past 24 hours.
Source: Zycrypto
