- Terra founder Do Kwon is on a mission to become the second biggest Bitcoin owner after founder Satoshi Nakamoto as his bid to buy $10 billion of BTC gathers steam.
- Kwon further said he’s not worried about a potential price collapse for BTC which would be detrimental to UST price and he expects BTC to keep soaring.
Do Kwon has been one of the most influential figures in the crypto space this year, with his project Terra cementing its position in the top ten. However, of late, it’s his involvement with Bitcoin that has tongues wagging, and in a recent podcast, he made his goal known – he wants to become the second-largest Bitcoin owner after Satoshi Nakamoto.
Kwon was on the popular Unchained podcast, hosted by Laura Shin where he talked about Terra and how LUNA and UST work, why he decided to adopt the Bitcoin standard for UST, and what would happen to UST if the price of Bitcoin crashes. As he has become notorious for, he made some controversial statements in the one-hour podcast, including saying that Terra has become a Layer 2 solution for Bitcoin.
Do we classify a centralized party holding BTC to backstop a wonky algorithmic stablecoin an L2 these days?
Even I don’t believe that Bitcoin’s standards have plummeted to such extent.
— antiprosynthesis.eth ⟠ (@antiprosynth) March 31, 2022
According to Kwon, should Bitcoin crash in the near future, the effect would be ‘negative’ for UST.
The worst case would be if we were buying Bitcoin and a crash happens six months later, and it’s correlated with a massive fall in demand for UST. […] I’m sort of betting that the long-term scenario of Bitcoin going up, and the reserves being strong enough to withstand UST demand drops is the more likely scenario.
As CNF has reported, Terra, through its treasury which is known as the Luna Foundation Guard, has been accumulating Bitcoin to back its UST stablecoin. Unlike Tether, USD Coin, and other top stablecoins, UST isn’t backed by dollars in reserve. Rather, it’s backed by an algorithmic burning of LUNA tokens, with each UST being tied to $1 worth of LUNA.
Also Read: Terra founder Do Kwon plans to obtain $10B BTC for reserves
The goal for Do Kwon is to become the second-largest BTC holder after Satoshi.
I think if we raise to 10 billion US dollars, the reason I want to get 10 billion US dollars, is besides Satoshi, we will be the largest single holder of Bitcoin in the world.
At press time, UST’s market cap is $16.5 billion, making it the 14th-largest cryptocurrency and the fourth-largest stablecoin after Tether, USDC and Binance USD. Kwon has an ambitious goal of making UST the largest stablecoin in the world. To do this, Terra would have to print about four times more UST tokens than it does now, with Tether’s market cap being $82.1 billion.
Kwon stated:
Terra’s goal is to become the largest decentralized currency in crypto, period. The goal is not to become the largest stablecoin on the Terra blockchain, so we expand to say the Solana, Avalanche, Ethereum, and Polygon ecosystems. We plan to be everywhere where there are developers and users.
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