Founder and CEO of Terraform Labs, Do Kwon has yet again purchased another $230 million worth of Bitcoin. The CEO took to Twitter to add that he has recently purchased 5040 Bitcoins through the Luna Foundation Guard to back Terra’s stablecoin reserve. The reserve at present sits at $1.6 billion to reach $10 billion in the near future.
Terra’s Do Kwon “Buys The Dip“
Do Kwon took to Twitter to unveil details regarding his latest Bitcoin purchase.
“Today I watered my plant, wrote some emails, bought 230M in bitcoin, vacuumed the house, had some McDonalds, now off to walk the dog,” Do Kwon said on Twitter.
Do Kwon had previously disclosed details regarding his plan to add Bitcoins to his TerraUSD Stablecoin Reserve which is managed by the Luna Foundation Guard. The purchased bitcoins were added to the TerraUSD stablecoin reserve to protect its prices against violent market fluctuations and establish price stability against unprecedented market turbulence.
Stablecoins are considered a reliable investment option in comparison with other cryptocurrencies since their value is tied and pegged to fiat currencies which offer investors a chance to earn stable yields.
The Terraform Labs CEO purchased nearly 5040 worth of Bitcoins on Wednesday when its prices dropped below $45,000. At present, the Luna Foundation Guard has 35,768 Bitcoins under its possession.
According to CoinMarketCap, TerraUSD is the fourth largest stablecoin by market cap, after Tether and Binance USD. It’s an algorithmic token that utilizes a unique swap mechanism that keeps the value of Terra USD stable at $1.