The public Blockchain Terra (LUNA) embraces her shopping craze Bitcoin (BTC) up again even as the cryptocurrency markets experience a rollercoaster ride of price action.
Luna Foundation Guard (LFG), the nonprofit founded to support Terra, announces that it has just purchased nearly 38,000 Bitcoin via over-the-counter (OTC) swaps with Genesis Capital and Three Arrows Capital (3AC).
“LFG has acquired an additional 37,863 Bitcoin totaling ~$1.5 billion in OTC swaps with Genesis Trading and 3AC.”
LFG goes on to provide a breakdown of each transaction, saying that 1 billion tokens from Terra’s native dollar-pegged stablecoin TerraUSD (UST) acquired $1 billion worth of BTC through Genesis, plus $500 million worth of bitcoin with 3AC.
Almost a month ago, LFG made several large Bitcoin purchases, and now their total holdings rank in the top 10 at around 80,394 BTC.
Terraform Labs CEO Do Kwon announced back in mid-March a plan to amass $10 billion worth of bitcoin reserves to support TerraUSD.
In an interview on the Unchained Podcast, Kwon said that BTC’s backing of UST would help investors trust the stablecoin when Terra later expands to other blockchains.
“Terra’s goal is to be the largest decentralized money in crypto, period. We plan to be wherever there are developers and users.
As you expand into these different ecosystems, then the confidence in LUNA’s collateral fitness is much lower than in the Terra ecosystem.
But if you Bitcoin as security, then no one really questions it because it’s the top.”
At the time of writing, Bitcoin is down 7.87% and is trading at $36,563.
BTC was still near the $40,000 mark a day ago before falling significantly on Thursday morning.
Check the price action
Source: Crypto News Deutsch