Kwon Do, Terraform Lab’s CEO, says the Bitcoin crash is unlikely to affect UST’s demand in the market due to its strong reserves. In his podcast interview with Laura Shin, Kwon Do revealed his expert observations about UST’s future position in the market.
According to Do, the BTC price is expected to rise for a long time. When asked about how a Bitcoin crash could influence UST in terms of volatility, Do shared that the UST stablecoin will remain steady in case a Bitcoin crash happens.
Instead of looking at a massive Bitcoin crash in the short term which is unlikely to happen, Do has his eyes on the long-term scenario of Bitcoin rising and “reserves being strong enough to withstand UST demand drops.”
Kwon Do is the co-founder of Ethereum challenger Terra (LUNA) blockchain who plans to keep on stacking the BTC to improve Terra’s value in the market. Currently, Terra has acquired 30727.9 BTC. Just recently, on March 29, it added up to 2,943 BTC. This rapid buying contributes to Do’s treasury goal for Luna Foundation Guard (LFG) to become “the largest single-wallet holder of BTC.”
erra is currently the third-largest holder in the world. Do plans to buy $10 billion worth of BTC to rival the second-largest holder, Satoshi.
In Unchained Podcast, Laura Shin asked about Do’s insights on Bitcoin volatility to maintain the UST reserve ratio and LUNA’s value. He said, “Over the long arc, the price of Bitcoin is going to do well, so the reserve ratio is expected to be a lot higher than the reserve ratio we paid at acquisition.”
Laura also mentioned that many crypto enthusiasts question Kwon Do’s strategy of using Bitcoin to build Terra reserves. To which Do clarifies that Bitcoin only acts as collateral; in fact, Terra is a Layer-2 solution, which is a bridge for Bitcoin to access various applications from DAOs to NFTs to DeFi.
He says, “Terra’s goal is to be the largest decentralized money in crypto, period. Its goal is not to be the largest stablecoin in the Terra blockchain.” Do is optimistic that Terra’s worth will increase for future expansions in the blockchain industry.
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