Terra’s creator opted to use bitcoin (BTC) as a reserve asset for the enterprise.
Almost all of the BTC at the LFG bitcoin address came from the hot wallet on Binance.
The Luna Foundation Guard’s bitcoin wallet was valued at $1.1 billion on March 26, 2022. After Terra’s inventor Do Kwon recently hinted about the blockchain project employing bitcoin-linked tokenomics, the address has acquired a significant amount of bitcoin in the previous four days. Because of this, Terra’s creator opted to use bitcoin (BTC) as a reserve asset for the enterprise.
Do Kwon stated:
“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.”
Bulk Accumulation of BTC
The Gnosis safe address, which is said to belong to the LFG, started to see activity after the announcement. According to sources, the LFG verified its bitcoin address and purchases were made “to back its UST stablecoin.”
According to the previous transaction, as of 5:18 a.m. (UTC) on March 26, the LFG bitcoin address has accumulated 493 BTC. Even though the wallet is valued at a whopping $1.1 billion at current exchange rates, this particular address has never actually transmitted any coins out of the wallet. There have been four USDT transactions totaling roughly $125 million transferred from the Gnosis safe address, and the most recent tether transaction was for 160,750,000 USDT.
Almost all of the BTC at the LFG bitcoin address came from the hot wallet on Binance, which has been marked as suspicious. However, the Gnosis wallet still has enough money to make daily purchases of BTC, so there’s no need to worry. When it comes to tether (USDT), the Gnosis safe address now owns $715.2 million (USDT) and $398.23 million in USD coin (USDC). Naturally, the buying frenzy has sparked much debate in the crypto world.