The latest acquisition puts Terra 35% closer to its long-term goal of USD $10 billion in Bitcoin for its UST holdings.
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Luna Foundation Guard (LFG), a non-profit organization that supports the Earth announced this Thursday the acquisition of 37,863 bitcoins for the equivalent of USD $1.5 billion for its UST stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. reserves.
The most recent purchase of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. was carried out through an over-the-counter (OTC) transaction in conjunction with Genesis Trading yThree Arrows Capital capital is most commonly defined as the large sum of money you would use to invest.reported LFG. As such, the organization agreed to purchase Bitcoin a Genesis in exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. for USD $1 billion in USDT and bought another USD $500 million in the flagship cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. fromThree Arrows.
1/ The LFG has acquired an additional 37,863 Bitcoins totaling ~$1.5 billion in OTC oTC, or ‘Over The Counter’ is trading that happens directly between two parties, with no exchanges or trading platforms involved. swaps with @GenesisTrading and 3AC. https://t.co/Ezzfwl7VFn
— LFG | Luna Foundation Guard (@LFG_org) May 5, 2022
According to CNBC the most recent purchase boosts the reserves of Earth a a total of USD $ 3.5 billion in bitcoins which meets the project’s short-term goal of $3 billion.
It should be noted that despite the reports, the wallet a place where cryptocurrency users can store, send and receive digital assets. figure that had previously been linked to LFG does not match with the estimates. According to blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. data from Bitcoin that address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. currently registers a fund of 42,530.8 bitcoins The organization is likely to keep the organization’s It is possible that the organization will keep the bitcoins in another undisclosed wallet.
On course to $10 billion in bitcoins
A few weeks ago, the founder of Earth , Do Kwon, announced its intentions to back the UST stablecoin with reservations on Bitcoin and the organization behind the project has been aggressively buying the cryptocurrency ever since.
Unlike other stablecoins UST is not backed by cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. reserves to maintain its parity with the dollar. Instead, it is algorithmically linked to LUNA, the native token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. of Earth . Each UST is issued by burning destroying a certain number of digital coins to reduce their issue. This method is used to fight inflation and increase the value of cryptocurrency. All token burning transactions are recorded in the blockchain as a transaction. Therefore, anyone can verify that the coins were destroyed. USD $1 in LUNA, which decreases the supply of that currency currency is a medium of exchange that defines value. as they are produced. stablecoins .
Earth has been aggressively building your BTC reserves since Kwon’s announcement in March. The most recent acquisition, one of the largest to date, brings the project even closer to its long-term reserve target of USD $10 billion in BTC.
In addition to Bitcoin , Earth has also expressed interest in diversifying its holdings into other cryptocurrencies. Last month, LFG and Terraform Labs (TFL) anunciaron la adquisición de USD $200 million in AVAX the native currency of Avalanche . The purchase was part of an agreement with the Avalanche Foundation to work on the interoperability blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains. of both ecosystems.
On previous occasions, the whale a term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market. movements caused by the purchases of Bitcoin made by the organizations behind Terra have boosted cryptocurrency prices; although it seems that this time, the market an area or arena, online or offline, in which commercial dealings are conducted. did not enjoy the same luck.
As of press time, the price of the major cryptocurrency is trading lower, slightly behind USD $37,000. The drop seems to be part of a more general trend in the market, which sees red numbers. Bitcoin and the main cryptocurrencies had registered aimpulso alcista ayer por la tarde, después del anuncio de la FED of rising interest rates.
- Terra bought more than 4,000 bitcoins for USD $170 million over the weekend and plans to diversify Solana
- Justin Sun introduces Tron’s new native algorithmic stablecoin: USDD
- Sources indicate that NEAR Protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. is about to launch its own stablecoin this April.
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash
