Terra (CRYPTO: LUNA) co-founder Do Kwon said he plans to add $10 billion worth of Bitcoin (CRYPTO: BTC) to the project’s reserves.
What Happened: Kwon announced the move on Twitter, saying that Terra having huge Bitcoin reserves will “open a new monetary era of the Bitcoin standard.”
$UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard.
— Do Kwon (@stablekwon) March 14, 2022
P2P electronic cash that is easier to spend and more attractive to hold #btc
He added that the reserve Bitcoin would be used to backstop short-term redemptions of TerraUSD (CRYPTO: UST) — the U.S.-dollar value pegged stablecoin of the Terra blockchain — and for a decentralized foreign exchange reserve.
Backstop shortterm $UST redemptions
— Do Kwon (@stablekwon) March 14, 2022
Decentralized forex reserve
Further, Kwon said the blockchain platform will not sell LUNA to build the Bitcoin reserves.
See Also: How to Buy Terra (LUNA)
Why It Matters: Last week, Kwon had announced that Terraform Labs (TFL) donated 12 million LUNA to the Luna Foundation Guard (LFG) and said that the project will keep growing reserves to become “mathematically impossible for idiots to claim de-peg risk for TerraUSD.”
If there is any confusion left at this point, we will keep growing reserves until it becomes mathematically impossible for idiots to claim depeg risk for $UST $UST is mighty https://t.co/6xCDPWJUTX
— Do Kwon (@stablekwon) March 11, 2022
In early March, it was reported that Terra surpassed Ethereum to emerge as the second-largest staked asset among major cryptocurrencies. LUNA is the second-largest DeFi protocol behind Ethereum.
Price Action: LUNA is down 0.2% during the past 24 hours, trading at $88.08 at press time.
