Bitcoin (BTC) has already netted its biggest recent buyer almost $200 million in price hike profitsaccording to data.
The analysis of the wallet related to the Terra blockchain protocol reveals that since it started accumulating BTC in the first quarter of this year, it has risen $165 million.
Terra co-founder rejects the idea that LFG has moved the price of BTC
The Luna Foundation Guard (LFG), a nonprofit around Terra, is pursuing its plans to back its new stablecoin TerraUSD (UST) with both Bitcoin and its native LUNA token.
The plans were revealed this month by Terra co-founder Do Kwon, but the destination wallet for funds has been active longer and saw a significant influx in January.
Since mid-March, purchases have accelerated and, in a few weeks, the balance of LFG has exceeded 30,000 BTC.
As if this wasn’t impressive enough, the bitcoin bull run, associated or not with Terra purchases, has reported USD 165 million in circumstantial profits to the organization. At three-month highs this week, above $48,000, the account hit $186 million.
In response to Peter Schiff’s criticism of Terra’s plans, Kwon seemed to deny the idea that such a large investment volume could cause the price of BTC to rise.
2/ Purchasing significant amounts of bitcoin creates information asymmetry between insiders (prof traders & desks) and everyone else.
_I_ am not buying bitcoin, the reserve is for the communities of users that use UST – numbering in the millions
Everyone should know.
— Do Kwon (@stablekwon) March 30, 2022
2/ Buying significant amounts of bitcoin creates an information asymmetry between insiders (traders and professional desks) and everyone else. I am not buying bitcoin, the reserve is doing it for the user communities that use UST, which are millions. Everybody should know.
“If it were able to cause a rise in the price of btc, it would not be suitable as a reserve asset,” he wrote as part of a Twitter debate with Schiff on Thursday.
Schiff had argued that the goal of backing a U.S. dollar stablecoin with something other than the dollar “doesn’t make sense.”
Terra to Tesla: “Hold my beer”
As Cointelegraph reported, Terra plans to buy a total of $10 billion worth of BTC.
This would make its holdings dwarf those of other well-known “whale” entities such as MicroStrategy, which currently has the largest corporate bitcoin treasury in the world, with 125,051 BTC ($5.89 billion).
Although MicroStrategy plans to continue buying, There has been no such commitment from the second company, Tesla, which owns some 43,200 BTC.
It seems that LFG will soon outgrow it.
Hold my beer. https://t.co/918awsBRne
— LFG | Luna Foundation Guard (@LFG_org) March 30, 2022
Hold my beer.
In terms of net profit, Tesla is up 1.36 times from its initial purchase price, while MicroStrategy is up 1.6 times.as shown by data from the monitoring resource Bitcoin Treasuries.
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