Terra has acquired $1.4 billion worth of Bitcoin, making it the 30th biggest single owner of the cryptocurrency in terms of market capitalization ( Could it become the Largest Bitcoin Whale?). With the current acquisition, the corporation now has a total of 30,727 bitcoins in its possession, with more greater purchases planned in the future.
Could Kwos’ Trust In Bitcoin Make Tera the Largest Bitcoin Whale?
It is expected that Terra will be one of the major investors in Bitcoin.” “Beware of Saylor,” Do Kwon, the creator of Terra, warned on Twitter.
With approximately 129,218 bitcoins in its cache after its most recent acquisition of 4167 bitcoins, Michael Saylor‘s MicroStrategy is one of the top Bitcoin whales, according to CoinMarketCap. MicroStrategy’s bitcoin holdings are currently estimated to be worth around $5.9 billion.
It was revealed in a Twitter space hosted by Udi Wertheimer that Kwon’s acquisition of a substantial amount of Bitcoin was motivated by a business opportunity. The decentralized stablecoin UST, according to Kwon, will be transformed into a hybrid stablecoin that would enable users to swap $1 worth of UST for $0.99 worth of BTC in the future.
The decision to use Bitcoin for Kwon was a simple one to make because of the trust that the cryptocurrency has built over the years. “It is really difficult for someone in the cryptocurrency industry to call Bitcoin into doubt,” he said. According to the firm’s creator, the corporation has set aside $3 billion to acquire Bitcoin in the immediate term, with the Luna Foundation Guard (LFG) planning to spend up to $7 billion on Bitcoin purchases in the future, according to the founder.
Terra’s stock soared by a whopping 6.50 percent as a result of the thriving environment, and is now trading at the $120 level. The asset achieved an all-time high of $199 and has continued to see a frenzy of activity as transaction volumes have risen significantly.
What is Terra’s motivation for switching to Bitcoin?
Terra’s founder has long been a proponent of Bitcoin, and the company’s current decision did not come as a surprise to many in the cryptocurrency business. The Bitcoin standard would enter a new monetary age, according to him, if the United States Treasury has $10 billion in Bitcoin reserves. This is peer-to-peer electronic currency that is simpler to spend and more appealing to have in one’s own.”
Terra has transformed UST into a hybrid stablecoin, allowing it to be traded directly for Bitcoin without the need for third-party middlemen. Exchange rates are quite competitive, with 10,000 UST being converted to BTC for around $2.58 per 1,000 UST.
This further enhances the discussion of UST’s interoperability, and Erik Voorhees has referred to the action as a “huge stride forward for cryptocurrency.” As stated by the firm, it plans to retain the UST’s peg to the dollar by utilizing BTC as an indirect peg, using Bitcoin’s prominence as the world’s largest cryptocurrency in order to preserve trust among consumers.