With a massive budget of $10 Billion US dollars, cryptocurrency platform Terra seems determined to cement its position as one of the largest Bitcoin holders. The cryptocurrency giant has already purchased over $1.5 billion worth of Bitcoins as per online chain data.
As of March 2023, Terra is the 30th largest holder of Bitcoins, around 30727. However, if recent purchases are analyzed, Terra seems to be lined up for more aggressive purchases. Some of the top BTC whales are MicroStrategy, Tesla, Galaxy Digital, Square, etc.
“The Terra Protocol will be one of the largest holders of $BTC. Saylor beware,” tweeted Do Kwon, Terra’s founder.
By Saylor, he meant Michael Saylor, the owner of another cryptocurrency platform MicroStrategy. With 129,218 BTC, Michael Saylor’s MicroStrategy is not one of the world’s largest BTC holders and is far ahead of its nearest competitor, Tesla Inc, which holds 48000 BTC. The company is currently valued at $5.9 billion. It recently purchased 4167 more BTC.
Terra owner Do Kwon recently spelled out the reason behind Terra’s rush for BTC. In a tweeter space hosted by Udi Wertheimer, Kwon said it has to do with the bright future of fiat currency pegged stable coins.
He said that “the decentralized stable coin UST would transform into a hybrid stable coin that will allow users to exchange $1 worth of UST for $0.99 worth of BTC”, reported Zy Crypto.
In this regard, it is worth noting that the UK recently introduced stable coins as a mode of payment in what many termed the first step toward the legalizing of cryptocurrencies in the major western economy.
On why Terra chose Bitcoins over other cryptos, Kwon gave a simple reply. He said that there is no denying that Bitcoin is popular and has a credibility angle that it acquired over the years.
Stating that Bitcoin is the oldest and world’s most popular cryptocurrency.
“It is very difficult for somebody in crypto to question Bitcoin,” he said.
The Terra owner said that for the time being, his company had set aside over 3$ billion for the purchase of BTC. He also said that the Luna Foundation Guard (LFG) would soon be shelling over $7 Billion on BTCs. LFG is an open-source software aimed at building a decentralized economy.
The recent deals pushed Terra’s values by a whopping 6.50% to near the $120 mark. The asset reached its all-time highest point at $199 as transaction volumes spiked. It has continued to witness a flurry of economic activity and transitions.
Terra is hopeful and futuristic about the potential of dollar-pegged stable coins like UST. It wants to make UST a hybrid stable coin that can be exchanged for BTC natively without meddling intermediaries for a nominal conversion rate.
Besides, Terra’s founder, Do Kwon’s inclination toward Bitcoin is not hidden from the public. He once stated that $UST with $10Billion in $BTC reserves would herald a new monetary era of the Bitcoin standard.
According to Erik Voorhees, the scope of the dollar-pegged hybrid stablecoin UST’s interoperability is a giant step forward for cryptocurrencies.
Terra has recently stated that it wants to add more confidence about dollar-pegged UST amongst potential crypto holders by using a leading cryptocurrency like BTC as an indirect peg.