Terra’s LUNA has been the best performing altcoin for the past few years while the activities of its network have been effective.
The co-founder of Terra has actively been posting a couple of updates earlier this month regarding BTC reserves. Following this, Terra purchased about $125 million worth of Bitcoins which is part of the plan to build BTC reserves.
After the purchase, the price value of BTC surged up to $44K while it is believed that Terra has fueled BTC. As a matter of fact, Terra has become the center of attraction following the plans of a $10 billion BTC allocation. This ultimate goal of acquiring $10 billion is for backing the network’s own stablecoin TerraUSD (UST). Thus the first purchase of BTC from LUNA’s network lineup with a 10% surge in its price action.
Three Billion Funds Are Ready To Seed
At the time of writing, Bitcoin was trading at $44,174 which is 2.48% up for the day. Terra’s action has created a major impact on the recent pump of BTC’s price. Moreover, LUNA has experienced over 8% gain in the past week. Besides, it is believed that the Bitcoin bullish rally will continue when Terra’s networks also make further action in BTC reserves.
Terra co-founder, Do Kwon, has again reconfirmed their plan on obtaining $10 Billion worth of BTC for reserves. He has mentioned that the current target is not $10B but they have $3B accessible. According to him, the firm has $3 billion to seed this reserve but he is unhappy about the technical infrastructure. As the infrastructure of the ecosystem is not ready yet, the platform is still waiting to proceed with further actions. Considering the post, It’s not ten billion dollars right now; as the UST money supply expands. Additionally, a portion of the taxes will be used to generate BTC reserves that are linked to the Terra chain.
Significantly, this makes users believe that Terra’s architecture is not complete enough to handle or build reserves. Though the performance of LUNA is enormous, the co-founder is unsatisfied and expecting a sooner deployment phase. After the bulk purchase of BTC according to their plan, it will definitely hit great highs.