BTC will eventually become even more liquid, Do Kwon stated in an interview with Bloomberg

​Terra blockchain co-founder explained the choice of bitcoin as a reserve

05.04.2022 - 14:10

106

1 min

What’s new? The co-founder of the Terra protocol, Do Kwon, stated that he will continue to buy BTC to support the stability of the TerraUSD (UST) algorithmic stablecoin. In his view, bitcoin is liquid and is the best collateral asset for the stablecoin. Terra will continue to buy BTC to issue new USTs and ensure the stability of stablecoins, the South Korean entrepreneur said in the interview with Bloomberg.

Bloomberg’s material

What else did Do Kwon say? The co-founder of Terra said that the Luna Foundation Guard (LFG), a non-profit organization, has reserves of just over 30 000 BTC and is set to grow to the equivalent of $10 billion. Bitcoins are needed by the platform to create a decentralized Forex reserve for a stable UST coin, Do Kwon summarized.

What preceded it? On March 28, the Luna Foundation Guard (LFG), a non-profit organization, bought $1 billion worth of bitcoins as part of increasing the stability of the algorithmic stablecoin UST. On March 30, the Luna Foundation Guard added 2943 bitcoins.

What is known about Terra? It is an open-source blockchain protocol for creating algorithmic stablecoins. The founders of the project are developers Do Kwon and Daniel Shin. The blockchain’s native token is LUNA.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy