Terra cofounder Do Kwon is the one who is pumping Bitcoin

[thecodebear]

Well they aren't "pumping" Bitcoin. They are using Bitcoin for a functional purpose: backing their stablecoin network. I wouldn't call that "pumping", the way people usually use that word. But even so, just referring to a rise in Bitcoin's price, $125 million in daily buying is not much compared to the tens of billions of daily volume of the global Bitcoin trade. That's equivalent to a slight rise in bullish sentiment.

There's not gonna be much at all direct effect of that buying on the price of Bitcoin. Now there might be a decent indirect impact, in which the market views positively the fact that another major crypto ecosystem is using Bitcoin as a major store of value to secure their own ecosystem. Thus promoting the fact that Bitcoin is ready to act as a highly effective global store of value.

Bitcoin was already building back up lately, so sure this probably helped out a little bit, adding to the bullish sentiment of the market. But this is just one small factor in the current bullish landscape of Bitcoin.

[EdenHazard]

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".

They seems mixed things up and creating a lot of confusion over here.

and it could be on purpose, part of the marketing strategy etc. but to be honest 125m usd per day are indeed insane huge amount of money to not making any impact in bitcoin market and crypto market as a whole.
20% spike high in the last 2 days ... that's the effect hmmm 

[jubalix]

at x billion size purchase, they will have loans from back somwhere in the pipeline, so it great just inflates fiat more and pumps value of BTC.

Think about it, swapiing infintley printibale digital USD via fractional reserve and QE for hard money. Who would not?

[GreatArkansas]

I don't think so this is the only reason for the recent pump, there are a lot of things to consider.

I am also curious why they are buying Bitcoin instead of they will just buying their own coins which are very huge possible to create huge pumps on their bags, they have this altcoin called Luna.

This is one of the best examples that they really know what is the future of Bitcoin even though they are altcoin founders.

[Fundamentals Of]

Whatever their strategy is, confusing as it may sound to me and others, I don't care. What is clear here is that Bitcoin is always the best way to go. They may create all kinds of altcoins and stablecoins, but the reality is that all these won't last and are built on sand. Having Bitcoin as a reserve asset for them give them a more solid foundation. People would be more comfortable knowing that they are backed by Bitcoin.

I am also curious why they are buying Bitcoin instead of they will just buying their own coins which are very huge possible to create huge pumps on their bags, they have this altcoin called Luna.

Just like any other altcoin, Luna will be facing its end sooner or later. Despite the pump, Luna is not going to last with Bitcoin. Luna's value will sooner or later fall down. It is always best to rely on Bitcoin and use it to back up your coins.

[peter0425]

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.

I'm not sure how that 10 billion target would be big help for the market ? is terra really something that has an effect to the cryptocurrency?

But of course any good investment will make the market hyping though from the 900 billion capitalization ? Am not sure if we really make this a bog changes to the increasing price or this is just a small part of many investors entering the market.

[thecodebear]

I don't think so this is the only reason for the recent pump, there are a lot of things to consider.

I am also curious why they are buying Bitcoin instead of they will just buying their own coins which are very huge possible to create huge pumps on their bags, they have this altcoin called Luna.

This is one of the best examples that they really know what is the future of Bitcoin even though they are altcoin founders.

Luna is already what backs UST. Burning Luna is what creates UST, and vice versa. So those two things are already intricately linked. Their goal with Bitcoin is to provide greater value security by giving UST a store of value backing in addition to the algorithmic stability provided by the interplay between Luna and UST.

Just as Gold has backed currencies in the past, they are going to use Bitcoin to help back UST. It is only natural that Bitcoin, as the hard money of the digital age, should start backing other currencies. This is just the first instance of that happening.

[FairUser]

I think the move is to dissuade those who are trying to create bad faith in Luna, but it is also one of the pieces of information that has given a big boost to the Luna ecosystem and the trust they place in BTC. Personally, I see this young talent gaining love from the crypto community, as we've seen the development of Luna all this time.

[OgNasty]

That is a crazy amount of Bitcoin to publicly state you’re going to buy. Running the numbers, we should see a price over $55K when all is said and done. If he also sparks buying from other billionaires then we could have another fomo situation on our hands. Bitcoin is finding its way into more and more investment portfolios these days. It feels like the best case scenario has been playing out lately. Sometimes it’s hard to believe this is happening. I don’t think this will be the last multi-billion dollar buy we see this year, but it does seem to be the one that turned the sentiment.

[btc78]

That is a crazy amount of Bitcoin to publicly state you’re going to buy. Running the numbers, we should see a price over $55K when all is said and done. If he also sparks buying from other billionaires then we could have another fomo situation on our hands. Bitcoin is finding its way into more and more investment portfolios these days. It feels like the best case scenario has been playing out lately. Sometimes it’s hard to believe this is happening. I don’t think this will be the last multi-billion dollar buy we see this year, but it does seem to be the one that turned the sentiment.

Of course as this will attract more investors because of the incoming bullish market , if this will all be added to Bitcoin then there are chance of climbing to that level 55k . and also if there are more investors getting to buy bitcoin then we can expect at elast 60k to the line?

I think the move is to dissuade those who are trying to create bad faith in Luna, but it is also one of the pieces of information that has given a big boost to the Luna ecosystem and the trust they place in BTC. Personally, I see this young talent gaining love from the crypto community, as we've seen the development of Luna all this time.

I don't care about Luna actually instead their choice to invest in bitcoin is what i really got interested.

[davis196]

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.

The Bitcoin reserve will have to be way bigger than the token emission,but such stablecoin projects would never resist the temptation of doing fractional reserve banking(issuing 100M USD worth of tokens,which are backed by 10M USD worth of Bitcoins). That's the main problem with stablecoins-fractional reserves.
What would be the main purpose of Terra,since we already have Tether?Does anyone think that the crypto exchange platforms will suddenly dump Tether and replace it with Terra?What's the point of this?
Tether could easily beat Terra,just by replacing a part of their USD fiat reserve with Bitcoins(if they really have a big USD reserve).
Terra doesn't offer anything new in terms of innovation and convenience.Maybe it will turn into another pump&dump shitcoin.

[Wilhelm]

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.

The Bitcoin reserve will have to be way bigger than the token emission,but such stablecoin projects would never resist the temptation of doing fractional reserve banking(issuing 100M USD worth of tokens,which are backed by 10M USD worth of Bitcoins). That's the main problem with stablecoins-fractional reserves.
What would be the main purpose of Terra,since we already have Tether?Does anyone think that the crypto exchange platforms will suddenly dump Tether and replace it with Terra?What's the point of this?
Tether could easily beat Terra,just by replacing a part of their USD fiat reserve with Bitcoins(if they really have a big USD reserve).
Terra doesn't offer anything new in terms of innovation and convenience.Maybe it will turn into another pump&dump shitcoin.

+1

Say you are launching something great
Get investors on board chipping in millions
Buy coins for $$$$$$$
Watch price go up-up-and-away
Say it’s not going to plan
Give investors money back plus interest
Keep the rest
Buy a yacht

[NeuroticFish]

It looks like Michael Saylor may have had some contribution in this.
This news tells that he got extra $205M for buying Bitcoin, but I would not be surprised if he has been buying already.

[Lucius]

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

Just for the reason that Bitcoin is growing, that is the most logical explanation - the crypto market has finally woken up and entered the spring from winter, and it seems that the long-announced crypto winter did not last very long. The opportunity for quick profits opened up and a small FOMO was created, now it remains to be seen whether the price of BTC will break the psychological limit of $50k.


Apart from the news that Honduras and Malaysia will declare Bitcoin a legal tender, which turned out to be mere speculation, and the news that Russia could sell oil and gas for Bitcoin - it seems that all these billions had an effect on the market. For almost 3 months we had several attempts to break the resistance to $45k, and then it finally happened, coincidence or not? Some will say that coincidences do not exist, while others will say that money drives everything.

[Ararbermas]

I am also curious why they are buying Bitcoin instead of they will just buying their own coins which are very huge possible to create huge pumps on their bags, they have this altcoin called Luna.

probably it's because of the situation of bitcoin reason their luna can't make progress. I mean instead of making pump on their own coin they choose bitcoin first so that it will influence their luna. I dont know if it make sens.lol

But i have doubts you are right , wherein they already knows what is the future of bitcoin, reason they put massive amount in it every day while at the current support. And surely there will be a massive return after all than investing on their own projects.

[OgNasty]

It looks like Michael Saylor may have had some contribution in this.
This news tells that he got extra $205M for buying Bitcoin, but I would not be surprised if he has been buying already.

Ya, this shows he's willing to bet the house to keep the pump going.  I have to wonder if he's running out of steam though.  Getting a loan against your Bitcoin to buy more Bitcoin feels a bit like squeezing the last little bit you can out of your collateral.  I assume he's unable to do any more bond offerings or raise any more funds from outside investors to go this route.  If that is the case, the market is lucky that Do Kwon is picking up the slack right now.  At the rate he's purchasing (about 125 million per day) it will be a while before he's amassed 10 billion worth of Bitcoin.  I assume that means the next few weeks are going to be good ones for Bitcoiners, but I do worry a bit about the mtgox coins hitting the market afterward.  With a little luck maybe these two events will overlap and cancel each other out a bit rather than cause massive volatility, but we'll see.  Certainly other billionaires are starting to see the writing on the wall and won't be left behind on these types of purchases.

[NeuroticFish]

It looks like Michael Saylor may have had some contribution in this.
This news tells that he got extra $205M for buying Bitcoin, but I would not be surprised if he has been buying already.

Ya, this shows he's willing to bet the house to keep the pump going.  I have to wonder if he's running out of steam though.  Getting a loan against your Bitcoin to buy more Bitcoin feels a bit like squeezing the last little bit you can out of your collateral.  I assume he's unable to do any more bond offerings or raise any more funds from outside investors to go this route.  If that is the case, the market is lucky that Do Kwon is picking up the slack right now.  At the rate he's purchasing (about 125 million per day) it will be a while before he's amassed 10 billion worth of Bitcoin.  I assume that means the next few weeks are going to be good ones for Bitcoiners, [...] Certainly other billionaires are starting to see the writing on the wall and won't be left behind on these types of purchases.

He does a gamble, but how risky is that.. it's debatable and the history will show whether he was right or not.
Betting on Bitcoin's price was always risky, but if you managed to keep the coins long enough, in max 4 years from the purchase the price was historically higher, meaning profit. If he has done the deals right, he should be on the winning side.

Also it's interesting to see that his work is in at least 3 directions:
* profit
* convince other big investors buy bitcoin
* be careful to not allow price drop too much (to not scare off potential new big investors)

In the previous cycle the start of the year (2018) looked much worse than this. I can almost hope that with more like Michael Saylor or Do Kwon we may get to 2024 without the ugly crypto winter.

but I do worry a bit about the mtgox coins hitting the market afterward.  With a little luck maybe these two events will overlap and cancel each other out a bit rather than cause massive volatility, but we'll see.

I don't know; whenever the price starts looking nice, some news come out about MtGox about to sell shitloads of Bitcoin, in a way or another.
I am sick and tired of those news, really. They'll sell when they'll sell, if they'll sell. I have a feeling that they're not idiots and won't crash the price if they'll actually sell instead of handing out bitcoins.

[doomloop]

Well they aren't "pumping" Bitcoin. They are using Bitcoin for a functional purpose: backing their stablecoin network. I wouldn't call that "pumping", the way people usually use that word. But even so, just referring to a rise in Bitcoin's price, $125 million in daily buying is not much compared to the tens of billions of daily volume of the global Bitcoin trade. That's equivalent to a slight rise in bullish sentiment.

There's not gonna be much at all direct effect of that buying on the price of Bitcoin. Now there might be a decent indirect impact, in which the market views positively the fact that another major crypto ecosystem is using Bitcoin as a major store of value to secure their own ecosystem. Thus promoting the fact that Bitcoin is ready to act as a highly effective global store of value.

Bitcoin was already building back up lately, so sure this probably helped out a little bit, adding to the bullish sentiment of the market. But this is just one small factor in the current bullish landscape of Bitcoin.

Pumping would be more suited for a whale that have no other intention than to inject more money in btc, making its value pumped up and a whale can use more money that what the guys are using in this article because if they will use less money, the pumping will also become less effective although the move that whales are doing is too unethical because they only do it to earn a profit later on but I like what the terra founder did because they are doing it for a good cause. They have no intention to dump bitcoin later on. Nice to see that other coin creators still look back on bitcoin despite their projects are already successful.

[fullhdpixel]

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

Just for the reason that Bitcoin is growing, that is the most logical explanation - the crypto market has finally woken up and entered the spring from winter, and it seems that the long-announced crypto winter did not last very long. The opportunity for quick profits opened up and a small FOMO was created, now it remains to be seen whether the price of BTC will break the psychological limit of $50k.

50K is not really a big psychological level, I mean it surely is one, but not a "big" one. I remember the old 20k period and I can tell you that 70k will be a huge one and 100k will be GIGANTIC. I can already guarantee that 70k will be looking like impossible to break, it will be broken but people will think for a very long time that it is the top and can't be broken and many people will leave. Then when the 100k price comes, everyone will say that it is the max bitcoin can reach and we could never be above 100k, there will be those people and I guarantee you that. We will go above that too of course, and even more than that, but it is going to be a real war.

[ivankoh]

They are using Bitcoin for a functional purpose: backing their stablecoin network. I wouldn't call that "pumping", the way people usually use that word. But even so, just referring to

So, in addition to the main points that are literally not really open in how they buy bitcoin for any general purpose proposition, we will also say that Saylor is not really a pump similar to Do Kwon.  But the way bitcoin is collateralized to support stablecoin loans is most likely seen as the way forward i guess