Bitcoin purchases will continue “in perpetuity”, says Terra co-founder

Do Kwon, co-founder of Terra stated that he will continue to buy BTC to back the company’s stablecoin, TerraUSD (UST) in an interview on April 8. Terra has made ripples both inside and outside of the cryptocurrency world in recent weeks as a result of its big Bitcoin purchases. According to one of its senior executives, Bitcoin (BTC) is the preferred collateral asset for the world’s largest decentralised stablecoin.

The reserves of Terra NGO the Luna Foundation Guard (LFG), which are currently worth slightly more than 30,000 BTC, are expected to grow to the equivalent of $10 billion. Kwon went on to say that as long as UST is created, Terra will continue to acquire BTC to support it. Kwon mentioned that one thing to remember about where we’re headed is that it’s not a corporate treasury choice in the idea that I’m not buying Bitcoin.

He continued, saying:

“He has previously made contributions in order to establish these reserves on behalf of the community. He aims to do so ‘in perpetuity,’ which means that the $3 billion or so he is purchasing first to boost the reserves will be followed by ongoing purchases of Bitcoin by UST top officials. Every time a new UST is produced, additional bitcoin is added to the reserves.”

Kwon stressed that because UST is a decentralised stablecoin, anybody may “mint” it by burning $1 worth of another decentralised asset. Tether (USDT), the most valuable stablecoin with a market worth of $82 billion and UST is the largest decentralised stablecoin with the worth of over $16.5 billion.

The simple explanation is that we’re leveraging Bitcoin to build a decentralised Forex reserve for the Terra stablecoin,  he concluded.

Read more:

• Terra co-founder acknowledges issues regarding Bitcoin’s Peg to UST stablecoin loss
• Terra bitcoin hold reaches to $1.47B after investing $139 million in BTC