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Backer of Terra’s UST stablecoin, the LUNA Foundation Guard (LFG), has announced that it acquired an additional $1.5 billion worth of Bitcoin to boost its reserve strategy. In a tweet shared yesterday, the LFG confirmed it had purchased 37,863 BTC tokens.
LFG surpasses Tesla in BTC holdings
The purchase made the Singapore-based nonprofit the second-largest corporate holder of Bitcoin – a crown that previously belonged to energy firm and EV carmaker Tesla. The purchase was completed in two transactions.
The first was an over-the-counter transaction in which the Foundation swapped $1 billion worth of UST with $1 billion worth of Bitcoin from the crypto lender, broker, and custodian Genesis Global Trading. The additional $500 million worth of crypto was bought via crypto hedge fund Three Arrow Capital. The purchases boosted the LFG’s Bitcoin reserves to upwards of 80,000 to gain a place among the top 10 largest Bitcoin whales.
With a cool 80,394 BTC sitting in its treasury, the LFG is well on its way to achieving the ambition of $10 billion worth of Bitcoin backing for its decentralized algorithmic UST stablecoin. With a current total of $3 billion in Bitcoin, the nonprofit is a third way there, and with further additions, it could become the largest single entity holding Bitcoin, as the current richest holder has just over $9 billion of BTC.0
Terraform Labs and the LFG have adopted the assertion of decentralized backing for decentralized money hence the race to boost their Bitcoin holdings. Further, the crypto backing is becoming multi-asset by definition, given that the two entities each acquired $100 million worth of Avalanche’s AVAX token.
Josh Kim, the head of derivatives at Genesis Global Trading, noted that this relationship could help diversify Terra’s assets to a clientele who would not as readily interact with an exchange. The broker could then offer said assets to this class of users as it leans more to the side of an institutional counterparty.
Besides bolstering the Bitcoin stash, the parties of this collaboration are also keen to bridge the gap between traditional finance and crypto-native market participants.
Terra (LUNA) loses support above $85
The crypto market has continued suffering a slump on Friday, with the total market capital dipping to $1.65 trillion. CoinMarketCap data shows that the majority of the top altcoins have recorded red candles both in 24-hour and 7-day timeframes. Bitcoin and Ethereum have lost more than 6% on the day, with the former dropping below the $36,000 mark.
Terra’s native token has printed a similar path, down approximately 4% on the day. LUNA/USD traded higher earlier this week, hitting a 7-day high of $87.96 during Wednesday’s session following a poor end to April and a sluggish start in May. A steep descent saw the token slide from $87 to $79.50 yesterday.
DeFi figures for the Terra chain are reflecting the price downturn. The total value locked on Terra has shrunk 3.36% in the last 24 hours to $28.66 billion, DeFi Llama data shows. The top five protocols have all seen negative changes in this period. Anchor, which contributes more than half of Terra’s TVL, has a -2.45% TVL change in the last 24 hours. The TVL on second-place Lido Finance has shrunk by -4.73%.
Terraformer to bring NFT aggregator on Terra
Elsewhere, Terraformer yesterday announced that it was looking to launch an NFT aggregator on Terra. It will be the first of its kind and will integrate different Terra marketplaces to provide users with a unified interface. This will help users access NFTs across various platforms with ease.
“TFM is soon releasing the first NFT aggregator on Terra! This will be a game-changer in the Terra NFT space and revolutionize the interaction between users and any marketplaces. More integrity, more vibe, and more value,” the Terraformer team detailed in a thread.
The slick UI will allow users to sort items based on various filters such as marketplace, rarity, trait and price. Further, they have an option to make the NFT purchases directly from the aggregator and complete the transaction via the connected wallet. A total of five NFT marketplaces had already been integrated at the time of the announcement, including Random Earth, Knowhere, and Talis Protocol. Terraformer plans to add the OnePlanet marketplace to this list as the sixth site.
To learn more about Terra visit our Investing in Terra guide.
Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.