Terra’s native token LUNA pumped to a record high of $107.12 following the announcement of Luna Foundation Guard stashing another $135 million to its Bitcoin reserve. At the time of publication, the currency was changing hands at $107.12, increasing by more than $12.63 from the previous day.
Luna Foundation Guard (LFG), a non-government organization focused on developing the Terra ecosystem, recently announced the establishment of a Bitcoin-denominated Forex Reserve for UST stablecoin, another native token of Terra.
So far, the foundation has hoarded more than $1.3 billion worth of Bitcoin, with plans to scale this reserve to $3 billion in the near term. Do Kwon, founder of Terraform Labs, revealed that the project will accumulate a total of $10 billion in Bitcoin to back UST stablecoins.
Since then, the foundation has been purchasing stacks of Bitcoins almost daily, which has also resulted in the king crypto performing satisfactorily as well. At press time, Bitcoin was trading at $47,782, up by 0.6% from yesterday.
Terra is an Ethereum-rival layer 1 blockchain that uses a set of algorithmic decentralized stablecoins to sustain DeFi projects on its protocol. The network has two stablecoins, LUNA and UST stablecoin, the former of which is used to balance the supply of the latter.