Terra Founder Addresses Concerns on Any Loss of Bitcoin Peg to UST Stablecoin

Coingape2022-04-05 tarihinde yayınlandı2022-04-05 tarihinde güncellendi

Özet

Terra’s parent entity Luna Foundation Guard (LFG) has been on a massive Bitcoin acquisition spree to peg BTC to its stablecoin UST.

Terra’s parent entity Luna Foundation Guard (LFG) has been on a massive Bitcoin acquisition spree to peg BTC to its stablecoin UST. Terraform Labs founder Do Kwon recently said that he’s even willing to become the second-largest Bitcoin holder after Satoshi Nakamoto.
However, many people are raising concerns over future liquidity amid this heavy accumulation by a single entity. Addressing these concerns, Do Kwon said that Bitcoin is “liquid” enough to handle any potential de-pegging of its UST stablecoin. During an interview with Bloomberg Quicktale on Monday, April 4, Kwon said:
“People need to have a little bit more faith in crypto. If you look at Bitcoin, it turns over more than US$20 billion per day and I think with time, it’s going to be even more liquid. Even if a stablecoin were to de- peg over time and those reserves would be used to defend that peg. I think (the Bitcoin market) would more than easily be able to absorb the Bitcoin that enters the market”.
Terra is planning to have $10 billion worth of Bitcoin to serve as a reserve for its decentralized UST stablecoin. The Luna Foundation Guard already completed a purchase of $1.5 billion worth of Bitcoin last month.
TerraUSD (UST) Taking Different Approach
Terra’s native stablecoin UST is currently the third-largest by market cap. But unlike the top two stablecoins – USDT and USDC – the TerraUSD (UST) takes a different approach.
USDT and USDC are centralized stablecoin in a manner that they are directly pegged to a fiat currency. On the hand, Terra’s UST stablecoin maintains its peg by burning the LUNA tokens. A Bitcoin reserve will further help UST’s ability to maintain its dollar peg. Kwon explained:
“The important thing to remember about Terra is that is a decentralised stablecoin in the sense that it has no issuer. If you were holding some sort of centralised collateral…bonds, Tether stablecoin, or (Circle’s USDC), in that case, whoever is holding the largest amount of these reserves would be subject to censorship, and would defeat the entire purpose of having decentralised stablecoin in the first place”.
LUNA has been one of the top-performing cryptocurrencies in the market. The LUNA price has appreciated more than 100% over the last month ever since the LFG started with its Bitcoin purchases. As of press time, LUNA is trading close to its all-time high of $116 as the seventh-largest cryptocurrency with a market cap of $41 billion.

İlgili Okumalar

Russian Hides Crypto Mining Farm in Outbuilding Near House

A 53-year-old resident of the Predgorny District in Stavropol Krai, Russia, hid cryptocurrency mining equipment in an outbuilding on his property and exchanged the mined cryptocurrency for rubles, according to materials from a criminal case. Investigators state the man purchased a special device online to connect his equipment while bypassing the electricity meter. The local power grid company estimates the damages from three years of unauthorized consumption at 1 million rubles. Criminal charges have been filed under the article for "causing property damage by deceit," which carries a penalty of up to two years in prison and an 80,000-ruble fine. Stavropol Krai is not among the Russian regions where cryptocurrency mining is prohibited. The ban is in effect in neighboring North Caucasian republics like Dagestan and Chechnya, as well as in Moscow, the Moscow region, and parts of several other regions. This case follows a similar one in Perm, where a mining farm owner faces charges after an inspection initiated by power engineers. In that instance, "Rosseti Ural" estimated damages from illegal electricity consumption at over 6 million rubles.

cryptonews.ru5 dk önce

Russian Hides Crypto Mining Farm in Outbuilding Near House

cryptonews.ru5 dk önce

BTC at the $80,000 Milestone: Is Altcoin Season Here? Institutional Buying Supports Rebound, but Rotation Signals Remain Weak

Bitcoin surged to around $80,000 this week, a significant rebound from approximately $63,000. The rally was primarily driven by strong institutional inflows into U.S. spot Bitcoin ETFs, which recorded their highest weekly net inflows in months ($19-20 billion). While market breadth improved, with the majority of top altcoins recovering above their 50-day moving average, Bitcoin's dominance remains elevated near 60%. The Altcoin Season Index sits well below the threshold of 75, indicating altcoins have not consistently outperformed Bitcoin over the past 90 days. This suggests a BTC-led recovery rather than a broad-based "altcoin season." Leverage and sentiment have risen quickly, with funding rates turning positive. Caution is advised as the market structure does not yet confirm a sustainable rotation into smaller-cap assets. The current strategy should prioritize core assets like Bitcoin and Ethereum, maintain selectivity with altcoins, and exercise restraint with leverage, awaiting clearer signs of capital rotation.

marsbit6 dk önce

BTC at the $80,000 Milestone: Is Altcoin Season Here? Institutional Buying Supports Rebound, but Rotation Signals Remain Weak

marsbit6 dk önce

CEO Managing Multi-Million-Dollar Assets Speaks Out in Support of Bitcoin Bull Trend: "The Dollar Has No Bottom, Bitcoin Has No Ceiling"

Anthony Pompliano, Chairman and CEO of ProCap Financial, assessed the key factors behind the recent surge in the cryptocurrency market. A leading figure in the crypto ecosystem, Pompliano argues that the uptrend is driven by macroeconomic factors, monetary policy, and shifts in global capital flows. According to Pompliano, Bitcoin is the financial asset most sensitive to ongoing global money printing and currency devaluation. Central banks, particularly in the United States, are reportedly expanding monetary policy to address debt burdens and budget deficits, pushing investors towards assets with limited supply. This highlights Bitcoin, with its fixed supply of 21 million, as a digital store of value. Increased market liquidity and institutional investor interest are claimed to have accelerated this process. The entry of traditional financial institutions through spot Bitcoin ETFs and direct treasury investment strategies amplifies demand pressure on the limited supply, creating upward pricing momentum. Pompliano stated, "As long as they keep printing money, Bitcoin is going to continue to go up in the long term," adding: "There’s this saying that, ‘Because the dollar has no bottom, Bitcoin has no top.’ I think people were reminded of that again."

cryptonews.ru41 dk önce

CEO Managing Multi-Million-Dollar Assets Speaks Out in Support of Bitcoin Bull Trend: "The Dollar Has No Bottom, Bitcoin Has No Ceiling"

cryptonews.ru41 dk önce

$19.2 Billion Pours into Bitcoin ETFs: Bessent Doubles Bond Buyback, Ignites $2.74 Billion Short Squeeze in 48 Hours

**Headline:** $19.2 Billion Flows into Bitcoin ETFs: Treasury Doubles Bond Buys, Sparking 48-Hour Crypto Short Squeeze **Summary:** The crypto market experienced a sharp reversal driven by a confluence of macro events. U.S. spot Bitcoin ETFs recorded their largest weekly inflow of 2026 at $1.92 billion. The key trigger was the U.S. Treasury's surprise announcement to double its long-term bond repurchase program to $4 billion, which lowered long-end yields and sparked a massive $2.74 billion short squeeze over two days. This was amplified by a pro-crypto White House meeting with industry CEOs and the SEC's first formal proposal for crypto asset regulation. However, the rally's leveraged nature was exposed by a weekend flash crash where XRP plummeted 37%, leading to $1.71 billion in liquidations in six minutes. The market now watches for signals from the upcoming Jackson Hole symposium and the potential passage of the CLARITY Act by mid-September. While ETF inflows and the Treasury's move provided a significant boost, the event underscored underlying market fragility.

marsbit55 dk önce

$19.2 Billion Pours into Bitcoin ETFs: Bessent Doubles Bond Buyback, Ignites $2.74 Billion Short Squeeze in 48 Hours

marsbit55 dk önce

a16z Deep Dive: Stop Chasing the 'AI Smell', Here's a Practical Guide to Writing with AI

"Don't Obsess Over AI Detection: A Practical Guide to Writing Alongside AI" by Steph Zinn (a16z Crypto) This guide moves beyond the flawed premise that AI-generated text can be easily spotted by a set of "tells" and that these features automatically mean poor quality. Instead, it focuses on how writers and founders can use LLMs effectively by understanding, controlling, and editing the common stylistic tendencies of AI-assisted prose. The article breaks down AI writing "tells" into four key dimensions: **1. Rhetorical Features (Insight-Shaped Writing):** AI often produces semantically empty, "corporate-sounding" filler language—vague profundities, hedging phrases, excessive parallelism, and summary statements. The advice is to ruthlessly edit these out, using prompts to make language more specific and direct. **2. Voice Features (The Alexa Voice):** Default AI writing relies on a narrow, fungible vocabulary of low-friction, abstract words and cliché phrases that lack personality. While this generic voice is acceptable for support docs or mass communications, founders should preserve their unique voice for impactful writing. Use LLMs to identify and replace jargon, aiming for concrete, distinctive word choices. **3. Structural Features (Form Without Function):** AI tends towards over-structured text with excessive subheadings, lists, roadmaps, and the rigid "three-point" framework. While clear structure is good for readability and SEO, it shouldn't force ideas into unnatural containers. Choose a structure that serves the format and purpose, borrowing from effective examples. **4. Punctuation Features (Dash Panic):** The overuse of em dashes and colons has become a hallmark, but writers shouldn't avoid useful punctuation just to seem "human." The key is avoiding repetitive, distracting patterns. Use punctuation that is grammatically correct and supports the flow of your argument. The core argument is that many so-called AI flaws are just amplified versions of existing bad writing habits. The goal isn't to eliminate AI's role but to use it as a tool while maintaining editorial control. The final question shouldn't be "Can this be detected as AI?" but "Does this writing effectively do its job?"

marsbit1 saat önce

a16z Deep Dive: Stop Chasing the 'AI Smell', Here's a Practical Guide to Writing with AI

marsbit1 saat önce

İşlemler

Spot