The decentralized stablecoin terraUSD (UST) of the Terra Project (LUNA) has just received a new strong support which reinforces the strength of its reserves. This massive support should boost Bitcoin as well.
The UST is still performing greatly.
On April 14, 2022, Terraform Labs tweeted that it had “donated an extra 10 million LUNAs” to the Luna Foundation Guard (LFG). At today’s prices, those ten million are worth around $820 million.
The LFG is a non-profit entity that handles the UST’s reserves. These assurances are utilized to keep the yen on par with the US currency.
Terraform Labs, on the other hand, did not clarify how this money would be used. Many speculators assume that the 10 million LUNA will be utilized to purchase bitcoins in order to ensure the UST.
Will these ten million LUNA be used just to buy Bitcoin, or will they also be used to buy other cryptocurrencies?
Avalanche just contributed $100 million to Luna’s reserves (AVAX). Will Terra maintain its diversification approach, or will it return to prioritizing Bitcoin?
The UST has once again profited from a billion-dollar fund to consolidate its reserves. The LFG had already declared in February 2022 that it would raise $1 billion in Bitcoin for its foreign currency reserve for the UST.