Terra cofounder Do Kwon is the one who is pumping Bitcoin

[bbc.reporter]

It appears the cryptospace has found a bigger celebrity investor than Michael Saylor or Elon hehehe. His name is Do Kwon, the cofounder of Terra, who was also the cofounder of blockchain project Cosmos. According to other news articles, $3 billion is only the beginning. Terra will invest $10 billion in total in bitcoin to use as a reserve asset for Terra UST stablecoin.



The Luna Foundation Guard (LFG) has raised $2.2 billion for its bitcoin reserve and hopes to hit $3 billion in the short term, with a longer-term goal of $10 billion, Terraform Labs CEO Do Kwon said in a series of tweets on Tuesday.

LFG, a Singapore-based non-profit working on the Terra blockchain, will use the bitcoin as a reserve asset for Terra (UST), the largest algorithmic stablecoin on the blockchain.

Read in full https://www.theblockcrypto.com/post/138892/do-kwon-reveals-plan-to-increase-usts-bitcoin-reserve-to-3-billion


According to 3 Arrows Capital's cofounder Kyle Davis, Terra is using $125 million a day to buy bitcoin. I am not certain if this is the real buy strategy or if this is only his assumption.



I can tell some of you have not executed size before. Let me tell you buying $125mil/day of $BTC for 3 months is a lot.

Source https://mobile.twitter.com/kyleldavies/status/1506872549254184960?s=12

[Poker Player]

I have been reading theblockcrypto.com article and there is one thing I don't understand. It says on the one hand that they are buying it on the one hand because they are going to tokenize Bitcoin into Luna, their native token and on the other hand they are going to serve as a reserve for their UST stablecoin.

I think in part this is an acknowledgement that their stablecoin and token are crap and that Bitcoin is better.

I suppose the reserve is to cushion the depreciation suffered by fiat currencies and therefore stablecoins, but it is not clear to me what role the volatility of the Bitocin can play in a currency that is supposed to be "stable".

[pooya87]

That is so dumb to say someone is "pumping" bitcoin just because their company made an investment in bitcoin. Such investments are usually a one time thing or the amounts bought in big intervals. Such actions won't affect the market specially since they sometimes don't even buy those coins on exchanges.

I also guess you haven't looked at the charts lately. Price isn't "pumping" at all! The best we had was an extremely slow rise to $44k which is still far below the $50k to reach the intrinsic value.

I suppose the reserve is to cushion the depreciation suffered by fiat currencies and therefore stablecoins, but it is not clear to me what role the volatility of the Bitocin can play in a currency that is supposed to be "stable".

This looks more like an investment in bitcoin that is not related to their shitcoin, regardless of what they might say. This could also be used to hype their company and their centralized shitcoin so that they may get some traders to use it instead of other centralized shitcoins like Tether.

[batang_bitcoin]

A win for their project and as well for bitcoin. Regardless of their investment plan, whether it be a DCA for bitcoin.
I like it when I see bitcoin's price pumping, well who doesn't want to see bitcoin? What they do isn't new but if they have a big allocated fund that they'll use for buying bitcoin then it'll really make a demand and will push prices up.

[stompix]

I have been reading theblockcrypto.com article and there is one thing I don't understand. It says on the one hand that they are buying it on the one hand because they are going to tokenize Bitcoin into Luna, their native token and on the other hand they are going to serve as a reserve for their UST stablecoin.

They've lost me at the second paragraph:

LFG, a Singapore-based non-profit working on the Terra blockchain,

Well raising 2 billion will get you some good lawyers but still, I don't think they've started this with the right set-up.

Back to the training mess, their UST coin is on the Terra protocol, they want to use this as a bridge for their chain liquidity, the plan is pretty simple, they've issued 1.2 billion UST, bought USDT, used that to buy BTC, then used more Terra coins to buy more BTC, I wonder how did they manage to prop their own currency like that. Oh, never mind, they've held 45% of the supply, talk about premined altcoins and money printing machines.

[Beerwizzard]

Does it mean that UST would be backed by USD and BTC goes in addition or a stablecoin is only backed by crypto?
IMO it seems like a bad idea since with a BTC price change we may have gaps between its value and token emission. Collateral value would also go down quite fast during the bull run. Therefore we can easily get in situation where a part of stablecoin supply is backed with nothing.

[jrrsparkles]

$125 Million a day? Seems good enough and that is the reason for Bitcoin is bumping? Since we are at $45K already I can see more sell and sell words from the whales or atleast in the cryptocurrency related articles so these are the whales want to buy Bitcoin so they expect people to sell them now and bump it hard?

[Husires]

It is useless news but can Terra prove that they are buying Bitcoin as a reserve? it is simple, just signing a message from any bitcoin address will suffice.

• $125 Million per day Alone, it is not enough to increase the price of Bitcoin by 5%, although it is one of the factors.
• What is new that this coin will offer? If they were talking about the peg and the reserve, then coins like BUSD, USDC would be better.
• Do they have any other assets that will be used to maintain the stability of the currency, especially if the value of Bitcoin drops sharply.
  
• The fact that they are using Bitcoin as a reserve means that the peg will not be 1:1

They add another SHITCOIN trying to make the fees low to get profits without having enough reserves.

[buwaytress]

OK I'm lost. Absolutely, like most semi-transparent mostly-opaque issuing companies of stablecoins, completely randomised explanations of what's possibly evolving algorithms that only he or his dev knows.

They're not investing in Bitcoin, they're just throwing stablecoins they created into Bitcoin on the market, and it's nowhere mentioned that I can find where you can verify if they hold a single satoshi (no need to show me if you find it, not interested).

Terra: Damn no one is using UST.
Terra: I know, let's use it to buy BTC.
Terra: Instant use case!

[STT]

Slightly wary of any large purchase being put through like this where it could turn out to be leveraged at all. It means it can reverse in future possibly.    I far prefer organic growth where price correlates to natural population rise in BTC ie. where the Bitcoin is being bought by an extra million people this I find to be far more bullish then one rich guys words and projected usage of BTC.
    To me BTC will always be about the bits not big buyers.

[TimeTeller]

Slightly wary of any large purchase being put through like this where it could turn out to be leveraged at all. It means it can reverse in future possibly.    I far prefer organic growth where price correlates to natural population rise in BTC ie. where the Bitcoin is being bought by an extra million people this I find to be far more bullish then one rich guys words and projected usage of BTC.
    To me BTC will always be about the bits not big buyers.

There is no tangible proof that they are indeed buying those amount of bitcoin.
If nothing else, it is giving positive vibes to the bitcoin community.
And if it is true, that's fine. At least they are contributing to the increase in the btc market.
It means, they are believing that btc will go up in the future.
Because if they have weak stance on btc, they won't buy huge amount of btc.

[Lanatsa]

Slightly wary of any large purchase being put through like this where it could turn out to be leveraged at all. It means it can reverse in future possibly.    I far prefer organic growth where price correlates to natural population rise in BTC ie. where the Bitcoin is being bought by an extra million people this I find to be far more bullish then one rich guys words and projected usage of BTC.
    To me BTC will always be about the bits not big buyers.

There is no tangible proof that they are indeed buying those amount of bitcoin.
If nothing else, it is giving positive vibes to the bitcoin community.
And if it is true, that's fine. At least they are contributing to the increase in the btc market.
It means, they are believing that btc will go up in the future.
Because if they have weak stance on btc, they won't buy huge amount of btc.

For institutions or companies who do proclaim out on buying big bulks in btc amount then it is somewhat that safe but for an individual or something like this then it isnt really that something that would really emphasis

privacy but instead it would expose out your identity but of course it would neither be intentional or not but in overall aspect this do really give out positive vibes indeed just like you do said.

Its price movement lately cant be considered for this thing to be precise reason of it since there are other factors which do affects it as well.

[TravelMug]

Slightly wary of any large purchase being put through like this where it could turn out to be leveraged at all. It means it can reverse in future possibly.    I far prefer organic growth where price correlates to natural population rise in BTC ie. where the Bitcoin is being bought by an extra million people this I find to be far more bullish then one rich guys words and projected usage of BTC.
    To me BTC will always be about the bits not big buyers.

There is no tangible proof that they are indeed buying those amount of bitcoin.
If nothing else, it is giving positive vibes to the bitcoin community.
And if it is true, that's fine. At least they are contributing to the increase in the btc market.
It means, they are believing that btc will go up in the future.
Because if they have weak stance on btc, they won't buy huge amount of btc.

For institutions or companies who do proclaim out on buying big bulks in btc amount then it is somewhat that safe but for an individual or something like this then it isnt really that something that would really emphasis

privacy but instead it would expose out your identity but of course it would neither be intentional or not but in overall aspect this do really give out positive vibes indeed just like you do said.

Its price movement lately cant be considered for this thing to be precise reason of it since there are other factors which do affects it as well.

There is one bitcoin address in the article if I'm not mistaken, maybe we can follow it and see how the buying spree is and says if it's true or not.

But if you look at the market right now, it really seems the price is really being positive as it get past the $43k, the biggest barrier so far and now we are going to $45k. So for sure someone is pumping money in the market and Terra could be the one during this.

And it was said that they will continue in the next three months so let's observe how the price will move then.

[adaseb]

This is not fake news. There is a wallet you can follow which shows the transactions being sent to Binance. So far for the last 4 days they sent $125M each day. People have been following the wallet and trying to front run the move.

They do a test transaction first like 40 USDT and then they do the actual $125M. They use some Jump type of strategy to buy them. Most likely TWAP.

Currently they got like $1B left in their account. However there is more according to the news reports. This is obviously bullish as bears won’t be shorting until he is done with his buys.

[Dave1]

This is not fake news. There is a wallet you can follow which shows the transactions being sent to Binance. So far for the last 4 days they sent $125M each day. People have been following the wallet and trying to front run the move.

They do a test transaction first like 40 USDT and then they do the actual $125M. They use some Jump type of strategy to buy them. Most likely TWAP.

Currently they got like $1B left in their account. However there is more according to the news reports. This is obviously bullish as bears won’t be shorting until he is done with his buys.

Yeah, just as what I thought, this is real as it gets.

I'm not sure if this is a good strategy though, to let the public know that they are buying in chunks and they are the one to "blame" for the massive spike that we are seeing and not because of the war. Perhaps it was a promotion on their end.

So bears are going to stay away for now until everything has settled down in the next 2 months, no shorting as they will be REKT.

[Wind_FURY]

I have been reading theblockcrypto.com article and there is one thing I don't understand. It says on the one hand that they are buying it on the one hand because they are going to tokenize Bitcoin into Luna, their native token and on the other hand they are going to serve as a reserve for their UST stablecoin.

I think in part this is an acknowledgement that their stablecoin and token are crap and that Bitcoin is better.

I suppose the reserve is to cushion the depreciation suffered by fiat currencies and therefore stablecoins, but it is not clear to me what role the volatility of the Bitocin can play in a currency that is supposed to be "stable".

It's a very smart investment in my opinion, and it's a very big complement that they chose Bitcoin. It proves that their shitcoins will need Bitcoin for their protocols to continue to exist, and survive the Darwinian process. I believe it will be the same with legacy banks, governments, and their central banks. They will be next because they might have no choice, they need a hedge.

[hugeblack]

I think that there are those who are trying to appear as Elon Musk or Justin Sun, thus inject this coin with news and a little investment to gain confidence and then print a lot of money to buy more Bitcoin.

I can't understand the benefit of adding a stablecoin based on the concept of linkage, which means that they may be good at first, but soon we will find that they have printed more of the assets they have.

If they create a new model then we may approve them.

[Wind_FURY]

I think that there are those who are trying to appear as Elon Musk or Justin Sun, thus inject this coin with news and a little investment to gain confidence and then print a lot of money to buy more Bitcoin.

I can't understand the benefit of adding a stablecoin based on the concept of linkage, which means that they may be good at first, but soon we will find that they have printed more of the assets they have.

If they create a new model then we may approve them.

Laughable. The Honey Badger don't care, Bitcoin is a Trojan Horse, absorbing financial systems old and new. Plus who are we to tell someone with billions that we disapprove of him of buying and HODLing an open, permissionless cryptocurrency? Will that stop him? We are mere plebs.

[stompix]

There is no tangible proof that they are indeed buying those amount of bitcoin.

Seems like it's real it has been already tagged by some people and it does match the movement from their USDT wallet and the sums.
The increment in which is adding coins each day also match the ~125m number.

Now, according to the sums left in their wallets with which they're buying this, there is almost another 1.8 billion left, so roughly another 40k
coins, even if we exclude their future fundraising it's still enough to quite a hefty chunk, already more than half of what MSTR holds.
Normally this would push us over 50k, but of course, with every increase in price, the number of coins they can buy while selling their own stash of altcoins goes down, not ATH material but still way better than what was happening a month ago.

Now, the 1 billion question, why are altcoins rising too?

[adaseb]

Which wallets are you looking at? The only one I can find is the wallet starting with “dac17” and this wallet only has $589M in it left in the form of USDT.

So that’s around 4.7 more daily buys. Most likely this entire week will be very bullish and we can easily break $50K.

I heard they got $10B max however those are for the future. This week I think the most they can buy is with the $600M worth.