Bitcoin (BTC), the global decentralized stablecoin’s collateral asset of choice, is what one of its top executives said.
Do Kwon, the co-founder and CEO of Blockchain protocol Terra, spoke to Bloomberg Monday. He pledged to keep buying BTC to support TerraUSD (UST), the stablecoin that backs the firm.
Kwon: BTC purchases will continue “in perpetuity”.
Terra’s massive Bitcoin purchases have made waves in the crypto community and beyond these past weeks.
The Terra nonprofit Luna Foundation Guard (LFG), currently has a reserve of just over 30,000 BTC. It is expected that this amount will grow to $10 billion.
Kwon said that Terra would continue to buy BTC as long as UST can be minted.
He stated that the decision was not corporate treasury in the sense that he is not buying Bitcoin.
“I have already donated money to help build these reserves for the community. We plan to continue doing this in perpetuity so the initial $3 billion that we bought to bootstrap the reserves will be followed by […] continued buys of Bitcoin through UST seniorage […] each time UST is minted new bitcoin will be added to the reserves.”
Kwon explained that UST is a decentralized stablecoin and anyone can “mint it” by burning $1 of another decentralized asset. UST is the largest stablecoin decentralized with a market capital of approximately $16.5 billion. Tether (USDT) is the largest stablecoin overall with a market capital of $82 billion.
He stated that Bitcoin is being used to create a Terra stablecoin-decentralized Forex reserve.
We’ll bring you the largest Bitcoin whale!
Kwon is active on Twitter and has pledged previously to outshine any form of competition, MakerDAO’s Dai stablecoin (DAI).
Related: “Hold my beers” — Terra has already made $165M by buying Bitcoin, as Tesla’s BTC stash is nearing.
Terra co-founder Do Kwon insists that the Luna Foundation Guard is in good shape, but that he isn’t “capable” of moving Bitcoin markets.
Kwon told followers last week that he was “just getting began” and that he would continue to tell them more details about the BTC purchases.
LFG’s wallet saw the last inflows Wednesday. It is the 29th most popular BTC address, with 30,727 BTC.
Terra’s reserves once complete will surpass those of any corporate Treasury and Kwon and his crew will be the largest Bitcoin whale.
LFG Bitcoin wallet (screenshot). Source: BitInfoCharts