Terraform Labs (TFL) has expressed plans to earn a whopping $10 billion worth of Bitcoin (BTC) to count to the mission’s stablecoin reserves.
Who is Terra?
Terraform Labs is a crypto fintech firm that employs a decentralized price-stable cryptocurrency. The firm aims to fuel the next-generation payment network and extend the true GDP of the blockchain environment.
Terraform Labs was established in 2018 by Do Kwon and Daniel Shin. The firm has its headquarters in Seoul, South Korea. Terraform Labs mints various stablecoins for e-commerce that imitate the worth of different fiat currencies.
Terraform’s technology drives on top of a digital ledger and a corresponding wallet utilizing the stablecoin called Luna. It has dramatically lowered payment transactions from days to merely around 10 seconds. Terraform’s platform currently has 2.2 million users with a standard daily transaction of almost 90,000.
Terraform is supported by Coinbase Ventures, Arrington XRP, Pantera Capital, Kenetic Capital, Galaxy Digital, and Hashed. The firm gathered $25M in the latest funding held on Jan 26, 2021. This fetches Terra a total budget of $58M till now.
What’s new? Why is Kwon planning for a reserve?
Kwon reported via Twitter on Monday that Terra will not trade its aboriginal asset LUNA to create its reserves and that more news is coming soon. In early March, it was declared that Terra outperformed Ethereum to appear as the second-largest stake purchase among prominent cryptocurrencies. LUNA is the second-largest DeFi protocol after Ethereum.
Kwon also confidently highlighted that its stablecoin TerraUSD (UST), supported by over $10 billion in BTC reserves, will “unlock a fresh monetary era of the Bitcoin economy.”
“P2P electronic cash is more effortless to spend and more tempting to hold,” he added.
P2P electronic cash that is easier to spend and more attractive to hold #btc
— Do Kwon 🌕 (@stablekwon) March 14, 2022
When Twitter users asked Kwon what BTC reserves, he communicated back that the funding shall be utilized to backstop fleeting UST savings and for a decentralized foreign exchange reserve.
In a tweet Kwon additionally informed that: “We started buying BTC and Twitter verified me, I see you, Jack,” in a reply to Jack Dorsey, who is a Bitcoin enthusiast and prior CEO of Twitter.
That is the second time Kwon has expressed plans to reinforce the reserves backing Terra’s stablecoin. After TFL donated 12 million LUNA to the Luna Basis Guard LFG on Friday (value around $1 billion at present costs) to strengthen the expansion of the Terra ecosystem and the sustainability of its stablecoins, Kwon defined that the mission will stay “rising reserves till it turns into mathematically not possible for idiots to assert de-peg chance for UST.”
“Terra platform has achieved a lot of investor attention after Terra-based ETFs’ current launch,” Jay Hao, CEO of OKX added. “It is predicted to continue to be a vital part of the global payment network due to its fiat-backed protocol.”
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