Robert Steinadler, a year ago
There are only two entities that keep on buying Bitcoin no matter what the price or the market conditions. The first one is MicroStrategy and the second one is the Luna Foundation Guard. The organization ensures that TerraUSD (UST) has additional collateral as a backup in case UST should face hard times.
How much BTC did the LFG buy this time and what were the conditions of the latest Bitcoin deal that the foundation has struck?
It is notable that the Luna Foundation Guard swapped $1 billion UST for BTC with Genesis Trading and bought another batch of Bitcoin worth $500 million from Three Arrows Capital. This isn’t the first deal between the parties involved and proofs again that UST is indeed a trusted medium of exchange rather than US-Dollars or other stablecoins.
The foundation’s Bitcoin reserve holds a total of 80,394 BTC which is worth $2,9 billion at the time of writing. The LFG is effectively one of the few entities that are known to the public to hold a significant amount of Bitcoin. Its treasury is only outmatched by MicroStrategy and closely followed by Tesla, which bought Bitcoin last year.
Even in the face of the recent decline in price, the LFG is showing the determination that only Bitcoin is a reliable backup in case of unforeseen events. TerraUSD is an algorithmic stablecoin that is not backed by dollar-denominated collateral and the Bitcoin reserve is meant to support the peg of UST.
With the recent hike in the interest rate, the crypto market took a hit again. This makes TerraUSD a viable alternative for investors who are looking to short the market and earn a substantial annual percentage yield.
The Anchor Protocol promises 18 % APY to investors if they invest their UST with Anchor. This not only beats inflation in the US and Europe but also provides stability while the market could get more volatile. In the meantime, Terra aims to establish UST as the number 1 stablecoin solution on the market.
According to CoinMarketCap both LUNA and UST are ranking among the top 10 cryptos. At the same time, USDT and USDC are remaining in a better position and it seems that they are not losing market share anytime soon.
May 18, 2023
Stablecoin issuer Tether (USDT) in its recent reserves report reveals that the company holds approximately 52 thousand BTC, worth a respectable $1.5 billion. This is only a fraction of its total assets but signals an interesting potential trend of institutions allocating a piece of their capital to Bitcoin.
May 01, 2023
Circle, the creator of stablecoin USDC, has launched a protocol that lets users transfer USDC between Ethereum and Avalanche. It will help increase user-friendliness and remove the risk of bridge hacks.
Apr 20, 2023
Stablecoins are highly attractive. Payments can be settled within minutes and investors have access to many different currencies that they can add to their portfolios. These are only two use cases for stablecoins and judging from their overall market cap, they will not only dominate the crypto space. They have a real chance to drive mass adoption since they tokenize currencies that are demanded by billions of people worldwide. It looks like Societe Generale recognized this potential.
Mar 17, 2023
When it became clear that Circle had $3.3 billion stuck at the Silicon Valley Bank the market went wild. USDC lost its peg and was trading way below 1 US-Dollar. Bear market PTSD set in and the broader crypto media was already discussing if USDC would fail. Fortunately, things turned around shortly after the initial turmoil and Circle was made whole again. This has been a big relief for the market but needs some explanation.
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