Terra has shocked the crypto world with its recent announcement that it plans to purchase $10 billion worth of Bitcoin (BTC) in order to add an additional security layer to Terra’s stable-coin with is pegged to the US Dollar (UST).
There is now unconfirmed reports that a particular foundation which focuses on the stable-coin UST, is purchasing Bitcoin as a reserve asset. At the same time Bitcoin is currently trading above $44,000 at a 3 week high. The rumor suggests that the Luna foundation Guard or LFG has purchased $125 million dollars worth of BTC (over 2,800 BTC at current prices) this week, which would indicate Terra may fully plan to deliver on its promise to purchase the $10 billion in Bitcoin.
Adding to the rumor, the Stablecoin (USDT) worth the same amount, ($125 million) moved from a safe reportedly owned by Terra. “They are slowly purchasing $3 billion of bitcoin from the Luna Foundation reserves. This is being done via aggressive buying on price dips,” stated Anthony Pompliano, a cryptocurrency enthusiast and partner at Morgan Creek Digital.
Adding to the speculation, anonymous crypto market analyst ‘Duo Nine’ tweeted “Check out how #Terra #Luna CEO is buying BTC live, Now at over 18k #BTC or $800 mil USD!”
The LFG foundation announced the decision to secure a $1 billion Bitcoin reserve last month, however Do Kwon, the founder and CEO of Terraform Labs, recently said that the foundation has plans to increase its reserves to $3 billion. He also stated that is with a long-term goal of raising a $10 billion BTC fund. The crypto market seems to have reacted well to the news and the Bitcoin price is currently trending upwards for the week.
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