Terra founder discloses things that will happen to UST if BTC cost crashes
Do Kwon said to Laura Shin on her Unchained podcast that he is chancing on the long-term development of the BTC rate and is not anxious about short-term volatility? Do Kwon, Terraform Labs CEO, has agreed that a crash in the cost of Bitcoin would be negative for the stability of the TerraUSD stablecoin but that he anticipates BTC to go up. Terraform Labs is the commodity behind the Terra blockchain forum which schemes on purchasing a whole of $3B BTC as a stock for UST.
Host Laura Shin begged Kwon what the short-term importance of clasping so much BTC will be for the stability of UST. Kwon has been purchasing BTC to hold in Terra’s treasury as 40 percent of the collateral for UST. Terra has amassed 30727.9 BTC and lately acquired 2,943 BTC. This makes Terra the 3rd largest single-wallet BTC owner. One of Kwon’s stated goals for the treasury, known as the Luna Foundation Guard is to make Terra the hugest single-wallet owner of BTC. To overthrow the current leader, Michael Saylor’s MicroStrategy, Kwon will need to accumulate more than 125051 BTC.
Kwon lived up to his reputation in an interview as an instigator by declaring that Terra is a layer-2 solution for the BTC network. He affirmed that with Terra, Bitcoin has a bridge that enables it to be used across a bunch of applications from DeFi to NFTs to DAOs.A layer-2 solution assists a layer-1 blockchain to increase its undertakings by moving many transactions to an alternate system to lessen congestion.BTC is exchanging at $44,463, below 5.61% in the last 24 hours.