The Luna Foundation Guard bought another batch of Bitcoin worth $100 million on Wednesday to protect the Terra network’s stablecoin UST. Three days ago, the LFG acquired 4,130 Bitcoin. The Foundation now holds 42,406.92 BTC worth about $1.79 billion.
The LFG wallet, according to the Bitcoin rich list, is the 18th largest Bitcoin wallet, with a great portion of the wallets in the list being cryptocurrency exchange cold wallets. Analysts highlighted that LFG’s Bitcoin wallet is close to surpassing Tesla’s collection of 42,902 BTC. If the Luna Foundation Guard adds more Bitcoin to its wallet, it will only be below Microstrategy’s 125,051 BTC in terms of public companies. When it comes to private companies, LFG’s wallet is below Block.one’s 140,000 Bitcoin.
LFG, a non-profit organization based in Singapore, wants to raise $3 billion, most of which has already been raised to buy Bitcoin. Analysts believe that without any large moves in BTC price, there could be a purchase volume of 180,000 Bitcoin in the coming months. UST is likely to become a dollar stablecoin backed by a fully transparent asset. It should be noted that collateralized stablecoins like USDC and USDT are backed by dollars in reserve.
The Luna Foundation Guard wants to cultivate the demand for Terra’s stablecoins and foster the growth of the Terra ecosystem. Terra proposed, in a white paper, a system of stablecoins whose value is pegged to an asset such as a fiat currency or a commodity. This will bring about the usefulness of the stable currency in Terra, which could retain the censorship resistance of Bitcoin, and make it viable for use in everyday transactions.