A mysterious Bitcoin wallet is accumulating more than $1.33 billion worth of BTC over the last two months, leading crypto sleuths to believe that Terra (LUNA) is the entity behind the address.
The Bitcoin address (bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q) has deposited nearly 24,955 BTC worth more than $1.1 billion. Market suspects it is the address of Luna Foundation, which has raised $2.2 billion for its bitcoin reserves. https://t.co/ex7yM1CWx0
— Wu Blockchain (@WuBlockchain) March 27, 2022
Do Kwon, Terra’s founder and chief executive officer, announced earlier this month that the project plans to accumulate a staggering $10 billion worth of Bitcoin to add to its reserves.
The CEO said on Twitter last week that Terra already has $3 billion in funds ready “to seed this reserve.” Around the same time, the crypto wallet in question started to ramp up its Bitcoin purchases.
Kwon argues that Terra having $10 billion in BTC reserves “will open a new monetary era of the Bitcoin standard.”
He has also said that the BTC will “backstop short-term UST redemptions.” TerraUSD (UST) is Terra’s US-dollar value pegged stablecoin.
LUNA is trading at $98.54 at time of writing, up more than 5% in the last 24 hours.
Bitcoin is trading at $47,196.69 at time of writing, up nearly 15% from where it was priced one week ago.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/diversepixel/Chuenmanuse