Terraform Labs CEO Do Kwon outlines the concept of gathering the top crypto assets by market size in order to back Terra’s native stablecoin, TerraUSD. As Terra expands to other blockchains, Kwon believes that having UST backed by BTC would help financiers trust the stablecoin.
Terra intends to amass $10 billion in BTC, according to Kwon, in order to become the planet’s second-largest holder of the king crypto. Kwon believes that UST backing by BTC will increase the trustworthiness of Terra when it expands to other blockchains.
Do Kwon outlines the concept of gathering the top crypto assets by market size in order to back Terra’s native stablecoin
The co-creator of Ethereum challenger Terra (LUNA) claims that the crypto project intends to keep stacking BTC until it has surpassed Satoshi, Bitcoin’s mystery founder, in terms of holdings.
During a recent interview on the Unchained Podcast (UST), Terraform Labs CEO Do Kwon described the idea of collecting the top crypto assets by market size to back TerraUSD, Terra’s native stablecoin.
“Terra’s goal is to be the largest decentralized money in crypto, period. Its goal is not to be the largest stablecoin in the Terra blockchain, so we’re sort of expanding into let’s say the Solana ecosystem, Avalanche, Ethereum, Polygon. We plan to be everywhere where there are developers and users.
Kwon believes that UST backing by BTC will increase the trustworthiness of Terra when it expands to other blockchains. As opposed to developing stablecoin demand in the Terra ecosystem, where the level of trust in UST is incredibly high when you go to expand into these other ecosystems, the level of trust in LUNA’s collateral fitness is significantly lower than it is in Terra.
Terra intends to amass $10 billion in BTC, according to Kwon, in order to become the planet’s second-largest holder of the king crypto.
“I believe that if we scaled out to $10 billion, we would be the largest single holder of Bitcoin in the world, aside from Satoshi.” Terra’s plan to acquire BTC was initially mentioned by Kwon earlier this month.
Bitcoin is currently trading at $47.269, down 1.7 percent on the day, while Terra is trading at $105.11, down 1.7 percent in the same timeframe.
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