The founder of Terraform Labs decided to set a new standard for Bitcoin by reserving it under the reserve fund of its stablecoin.
Terra blockchain is known to provide stable coins support. Its native coin is Luna and its stable coin UST is popular in the global crypto community, which is pegged by exactly the value of 1 dollar. The main initiative of this project is to provide a better Ecosystem to the financial Dapps.
At the beginning of this week, Do Kwon, founder of Terraform Labs (TFL), notified his followers on Twitter that Terraform Labs aimed to reserve a total of $10 billion worth of Bitcoin behind the stable coin UST.
Kwon noted that the latest initiative of Terra will make a new Bitcoin standard.
A crypto new website asked Terraform Labs founder, regarding this initiative, whether it was an old plan or it is a new plan for this phase. On this Kwon said that there is no difference between these two and they are already buying Bitcoin.
“I don’t understand the distinction, We’re already buying Bitcoin.”
A Twitter user asked whether the team will sell Luna to buy Bitcoin or not. In response, Kwon said that Luna will remain reserved.
On the details of Bitcoin holding, a Twitter user asked where we will get details for the same, then Kwon said they will provide details about it soon.
These initiatives are not much strange but here the amount of Bitcoin holding is really a big thing and it will further influence other companies to reserve funds in Bitcoin.