- Do Kwon recently noted that the Bitcoin (BTC) market is liquid enough to handle a potential loss of Terra’s primary stablecoin UST.
- He highlighted that the Terra protocol would be among the largest holders of the crowned cryptocurrency.
- Terra continues to take major steps towards its Bitcoin reserves. He earlier said UST would be the first internet native currency to carry out a Bitcoin standard in its monetary policy.
Terraform Labs Founder Do Kwon, that supports the Terra (LUNA) blockchain, has recently signified his beliefs about the Bitcoin (BTC) market being liquid enough to handle a potential loss of Terra’s primary stablecoin UST.
In a recent interview, he highlighted his thoughts that people need to have some more faith in crypto. And that BTC turns over more than $20 Billion each day, and with time he sees it become even more liquid.
The Founder has noted that the Terra protocol will be among the largest holders of the crowned cryptocurrency as the project develops its BTC denominated reserves to enhance the security of its decentralized stablecoin with an additional layer.
Terraform Labs plans to amass $10 Billion of Bitcoin (BTC) to add to its reserves of stablecoins.
The decentralized stablecoin UST is utilized to enable trading in crypto exchanges, similar to the other stablecoins and their uses. However, the stablecoin does not have a formal backing and is dependent on LUNA to maintain the peg. To enhance the security of UST, the Luna Foundation Guard (LFG) has bought over $1.4 Billion in BTC for its reserves.
Furthermore, Kwon highlighted that even if a stablecoin were to de peg over time, those reserves would be utilized to defend that peg. He thinks that he will be able to absorb the BTC that enters the market easily.
Kwon signified that after buying a total of $3 billion as a reserve for UST, they plan to add more Bitcoin to its UST’s reserve. He noted that it is important to remember that Terra is a decentralized stablecoin in the sense that it has no issuer.
The Founder is pretty confident about the future of Terra and the LUNA token, so much that he earlier took on two bets of $11 million on if the LUNA’s price would reach above $88 next year.
Late last month, he also highlighted that UST would be the first internet native currency to carry out a Bitcoin standard in its monetary policy.
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Source: https://www.thecoinrepublic.com/2022/04/07/can-bitcoin-survive-dark-ust-clouds-thinks-do-kwon/