Luna Foundation claims to have bought another 37.000 bitcoins

Luna Foundation claims to have bought another 37.000 bitcoins - 1645611735 Luna Foundation Guard Establishes a Bitcoin Reserve for Its UST 740x444 1The Luna Foundation, which is responsible for the development of the Luna network and the US terra stablecoin (UST), reports that it has purchased 37.863 bitcoins (quotation BTC), equivalent to approximately $ 1,5 billion.

This figure places the organization among the 10 largest holders of bitcoin. In terms of institutional adoption, the Luna Foundation, with 80.393 BTC, becomes the second largest bitcoin investor and surpasses Tesla, the company of Elon Musk, which accumulates "only" 43.200 BTC.

A press release was used by the Foundation to announce the purchase. He details that the trade was done in coordination with the Genesis broker. Part of the purchase was paid for with UST stablecoin $ 1 billion. The remainder ($ 500 million) was acquired through the hedge fund Three Arrows Capital, or 3AC.

At the time of publication, the move is not reflected in the Luna Foundation's holding balance sheet on its website, nor in the Bitcoin address identified with the organization.

It is worth mentioning that South Korean Do Kwon (CEO of the Luna Foundation and creator of the Terra network) wants to make his organization the largest bitcoin holder in the world.

The reason for doing so, as he explains, is to support its development with the most popular cryptocurrency on the market. However, this does not mean - as has sometimes been incorrectly stated - that the UST stablecoin is backed by bitcoin. It is an algorithmic currency that maintains its parity with the US dollar by burning or issuing the earth cryptocurrency (LUNA).

There is "a growing demand for decentralized stablecoins".

In relation to the recent acquisition of bitcoin, Do Kwon mentioned that "the mission of the Luna Foundation is to support the stability and adoption of the UST stablecoin". According to the entrepreneur, "the latest bitcoin acquisition agreement with Genesis for the UST reserve" is "a sign of the growing demand for decentralized stablecoins in the cryptocurrency market".

"This helps build bridges between cryptocurrency communities united by decentralized common money" - Do Kwon, CEO of the Luna Foundation and creator of the Earth network.

Joshua Li, Head of Derivatives at the Genesis exchange, further commented: “Terra's remarkable growth has continually reshaped the cryptocurrency markets over the past two years (…) Genesis is thrilled to be a liquidity partner for the Terra ecosystem, connecting it to a wider audience of institutional market participants ".

From what is reported here, two unknowns emerge. The first concerns the fate of the bitcoins that the Luna Foundation claims to have acquired. They did not report whether they keep them in custody or if they have created an address other than the one they have always used. It is also striking that the organization's financial statements are out of date with the new acquisition. Nor did they indicate in the release how the FSOs used to make this part of the purchase were issued.