Terra (LUNA) adds 4,130 bitcoin (BTC) to its stash worth $ 176 million

Terra adds more Bitcoin to the UST reserve

Do Kwon, the founder of the Terra blockchain, had recently announced that the reserve fund aimed at supporting the UST stablecoin would be increased to Bitcoin worth 10 billion dollars.

The promise is kept, because recently we have seen that new purchases are made regularly over the counter (OTC). The last allocation took place this Sunday, for an equivalent of 4,130 new bitcoinsacquired for a value of 176 million dollars. This brings the total reserve to nearly 40,000 BTC.

The Luna Foundation Guard (LFG) gives the possibility to follow the evolution of this reserve guaranteeing the stability of the FSO, we see that Bitcoin represents 64.2% of the total at the time of this writing:

Allocation of the Terra reserve fund

At present, this fund is therefore composed as follows:

  • 39,900 BTC for $ 1.69 billion;
  • USDC 398.66 million;
  • 4.27 million LUNA for 378.17 million dollars;
  • USDT 164.36 million.

This then leads to a total of 2.63 billion dollars which provides additional protection for the reliability of the algorithmic stablecoin.

👉 To go further – Find our comprehensive UST stablecoin guide

A growing fund

Prior to this Sunday’s purchase, it should also be noted that April 6 had seen an inflow of 5,040 BTC to this popular reserve. It is also a safe bet that these purchases will recur over time, until they catch up on the threshold of 10 billion dollars.

Furthermore, it appears that the LFG does not want to limit itself to Bitcoin. Indeed, $ 100 million from AVAXthe native token of the Avalanche ecosystem, will soon be added to the fund.

It is a real diversification strategy that is implemented to run from its own blockchain.

Furthermore, if the FSO is still in fourth place in the stablecoin ranking with a capitalization of $ 16.7 billion, it may soon exceed Binance’s BUSD which for its part records 17.9 billion.

Although the algorithmic stablecoin is initially built to naturally balance at $ 1 through arbitrage, we see that Terra has been able to put in place an additional layer of stability that can strengthen the investor confidence.

👉 On the same topic – Terra (LUNA) will have a $ 10 billion reserve in Bitcoin (BTC)

Source: Fund’s Bitcoin address, reserve breakdown

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About the author: Vincenzo Mayor

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I timidly discovered the world of blockchain in late 2018 during my pursuit of financial freedom. Initially invested moderately, only two years later I decided to bet everything on the movement that was taking shape at the time. So I dedicate 2021 to train better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I know, I want to share it with you.
All articles by Vincent Maire.

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