Do Kwon’s Recent Interview
In an interview with Udi Wertheimer, Kwon emphasized Bitcoin’s superiority over other crypto assets, describing it as the best-distributed and most reliable digital asset. He stated that Terra’s Bitcoin reserves would be used by the Luna Foundation Guard (LFG) to stabilize Terra’s independent stablecoin, UST, during periods of market volatility. LFG also plans to hold part of the seigniorage to achieve their $10 billion goal.
The strategy of backing UST with Bitcoin reserves is expected to boost user confidence and attract more adoption.
Is Terra Putting Its Money Where Its Mouth Is?
Do Kwon has confirmed that Terra has already begun purchasing Bitcoin to reach its reserve goals. Prominent crypto influencer Lark Davis called Terra’s move “incredible” and suggested it could have far-reaching effects on the crypto market. Similarly, US investor Anthony Pompliano noted that Terra’s approach could set a precedent for central banks and corporations to back assets with Bitcoin, highlighting BTC’s status as the world’s most pristine collateral.
Kwon’s High-Stakes Bets
Do Kwon’s confidence in LUNA’s success has been demonstrated through two high-profile bets with crypto personalities:
- A $10 million bet with Gigantic Rebirth (GCR) on whether LUNA’s price will exceed $88 in a year.
- A $1 million wager with pseudonymous crypto critic Sensei Algod, with Kwon offering 2:1 odds that LUNA won’t experience a price crash.
Both bets are held in escrow by Cobie, a crypto trader known on Twitter, who confirmed receipt of the funds with the statement, “May the best degen win.”
O Terra
Terra is a blockchain payment network that integrates algorithmic stablecoins. Powered by the LUNA token, the protocol supports smart contracts and operates as a fintech ecosystem. Terra’s stablecoins maintain their value through internal algorithms. Founded in 2018 by Do Kwon and Daniel Shin, Terraform Labs raised $32 million from investors like Binance Labs, OKEx, and Huobi Capital. Terra’s innovative approach has positioned it as a leading player in the next-generation blockchain space.
