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Terra (LUNA) buys $135 Million in BTC to back UST stablecoin

Bhushan Akolkar-CoinGape
2022-03-29 01:03
Bitcoin and the broader crypto market have bounced back strongly at the start of this new week as long-term holders continue to make strong accumulation. On the other hand, Terra continues with its strong Bitcoin accumulation as part of its strategy to back the UST stablecoin.
On Monday, March 28, the Terra Foundation added another $135 million worth of BTC taking their total Bitcoin purchase for the year 2022 to more than $1 billion. Terra has pledged to have $10 billion worth of Bitcoin in its reserves.
Speaking to Bloomberg News, Do Kwon, the founder of Tera blockchain confirmed the same. Data shows that the address belonging to the Terra Foundation purchased a total of 27,784.96954740 Bitcoins.
Last week, Kwon said that Terra has $3 billion in funds ready for BTC purchases in order to back the UST stablecoin. As per the Bitcoin addresses of the Luna Foundation Guard, it started buying Bitcoin on January 26.
As per Kwon, a Bitcoin reserve will help improve the UST’s ability to keep its dollar peg. This will be particularly helpful whenever Terra faces any short-term demand in UST redemption. Kwon said:
“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset. UST is going to be the first internet native currency that implements the Bitcoin standard as part of its monetary policy.”

Terra LUNA Price Surges Past $100

Terra’s native cryptocurrency LUNA continues to make strong advancements to the north. On Monday, March 28, the LUNA price surged past $100 and is already trading at 100% gains from its 2022-low.
The LUNA price has also appreciated 30% over the last three weeks. Besides, Terra’s LUNA has been strongly resilient to the crypto market volatility since Russia’s invasion of Ukraine. As the LUNA price currently trades close to its all-time high, we expect it to set new records very soon.
The post Terra Buys an Additional $135 Million Worth of Bitcoin (BTC), LUNA Price Hits $100 appeared first on CoinGape.
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