The Terra blockchain’s greedy promise to create a $10 billion bitcoin fund for the UST stablecoin reserve appears to be moving forward gradually.

This Wednesday (30), the Luna Foundation Guard (LFG) bought 2,943 bitcoins with about $140 million in USDT, sent shortly before for Binance.

As you can see from the bitcoin address that belongs to the foundation (bc1q9…v4q), the purchase took place when the cryptocurrency was trading at $47,350.

Earth’s bitcoin reserve has risen to 30,727.97 BTC with this morning’s new acquisition, an amount of currency that equates to $1.4 billion.

This week alone, the foundation bought 5,773 BTC, worth $272 million, during Monday and Wednesday purchases. In fact, yesterday (29) was the only day the wallet hasn’t received bitcoin since the company’s plan was announced.

“Last week, LFG sent $125 million worth of USDT every weekday and $160 million on Saturday to Jump Trading, which executed BTC trades quickly after that,” said Vetle Lunde, an expert at Arcane. Research, to CoinDesk.

The purchases are having a positive effect on the market price of LUNA. Yesterday (29) the cryptocurrency was able to appreciate 9% and reach a new all-time high of $109, according to CoinGecko.

Some experts believe that LFG’s demand for BTC would be one of the reasons behind not only LUNA’s price gains, but bitcoin itself.

Do Kwon, co-founder and CEO of Terra, confirmed that he has purchased more than $1 billion worth of bitcoin since the beginning of the year, with the largest acquisition since then (8,588 BTC) being recorded on January 26.

The UST reserve

Last Tuesday (22), Kwon announced on Twitter that the foundation had $3 billion ready in cash to buy bitcoin for the reserve that, second the creator of Earth, will one day reach $10 billion in bitcoin.

“The reason we are particularly interested in bitcoin is because we believe it is the strongest digital reserve asset. UST will be the first native internet currency that implements the bitcoin standard as part of its monetary policy,” Kwon said in an interview with Bloomberg.

At the time, the businessman said that the reserve that is being built will help improve the UST’s ability to maintain its indexation to the dollar, especially when there is a short-term demand for UST redemption.

According to CoinDesk, the foundation’s Ethereum address still holds $848 million worth of stablecoins that can be used to fund new BTC purchases in the coming weeks.

Since they were announced last week, Earth’s ambitious plans have been dividing the crypto community. On the one hand, there are those who see a BTC reserve for UST as something revolutionary.

“We are seeing some of the earliest and most ambitious ideas in cryptocurrencies starting to unfold. A decentralized crosschain stablecoin backed entirely by digital native assets was the Holy Grail in 2016,” tweeted Su Zhu, co-founder of Three Arrows Capital.

On the other hand, Adam Back, CEO of Blockstream and one of the most important names in the bitcoin community, views Earth plans with cynicism, saying that there appear to be ponzi scheme components in the company’s operations.


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