Do Kwon, Terra Founder Reveals UST’s Plan To Raise Bitcoin Reserves To $3 Billion

Terra founder, Do Kwon announced in a series of tweets on Tuesday that the Luna Guard Foundation has already raised $2.2 million for BTC reserves and plans to add more to the total in the near future, bringing the total to $3 billion. The Bitcoin reserves will be used by Luna Foundation Guard, a non-profit organization working on the Terra blockchain, to defend UST, Terra’s independent stablecoin, from market discrepancies and high price volatility.

Do Kwon was asked to reveal ideas for why the Terra founder is interested in Bitcoin reserves to support UST in a series of tweets.

“Bitcoin is the only hard reserve asset that’s been proven out of the digital currencies. It is very difficult for somebody in crypto to question bitcoin.” 

Do Kwon responded

He also revealed how LFG plans to raise money to get its reserves up to $3 billion, noting that the Luna Foundation Guard has already raised $1 billion through the sale of LUNA tokens. By selling UST for Tether, the charity was able to raise $1.2 billion. Furthermore, the foundation now needs $800 million to boost the BTC reserves to $3 billion.

Kwon went on to say that the foundation is working toward a long-term aim of expanding the UST’s BTC reserves to $10 billion. In order for this to happen, he added that the stablecoin may keep a part of “seigniorage” aside to acquire the said figure.

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