Do Kwon, co-founder of the Terra (CRYPTO: LUNA) blockchain protocol, said he plans to buy $3 billion worth of Bitcoin (CRYPTO: BTC) in the immediate term.
What Happened: In a Twitter Inc (NYSE:TWTR) space hosted by Udi Wertheimer on Mar. 19, Kwon hinted at an imminent large-value purchase which will go towards building Terra’s Bitcoin reserves.
#terra is about to buy $3 billion dollar worth of #bitcoin imminently
— udiverse (@udiWertheimer) March 22, 2022
to use it as a reserve asset
if you’re a bitcoiner you need to listen to this recording to catch up
you won’t find this info on the timeline of your favorite maxi https://t.co/38837QBs8S
Last week, Kwon announced that TerraUSD (CRYPTO: UST) will transition from an algorithmic stablecoin to a Bitcoin-backed stablecoin. Terra plans to build $10 billion worth of Bitcoin reserves for the cause.
Why It Matters: Earlier today, market participants noticed a large transaction on the blockchain leading to speculation that Kwon had gone through with the BTC buy order.
Tonight pamp brought to you by @stablekwon congrats on your 125m $Btc buy sir
— Pentoshi (@Pentosh1) March 22, 2022
Blockchain wallet tracker Whale Alert highlighted a $125 million transfer of Tether (CRYPTO: USDT) to crypto exchange Binance from a wallet associated with Terra.
Crypto traders found that a BTC/USDT buy order was executed on Binance with $60 million worth of buy volume.
If they really using Binance USDT spot then maybe they didn't blow the whole clip in one go. So a little more to go? pic.twitter.com/0boNVEooLX
— Byzantine General (@ByzGeneral) March 22, 2022
Traders speculated that more buying activity may be underway, seeing as the wallet address had a balance of $1.65 billion worth of USDT and USD Coin (CRYPTO: USDC).
Price Action: Bitcoin saw a sudden spike to $43,124 during Asian hours on Tuesday. The market-leading cryptocurrency was trading at $42,226 at press time, gaining 3.12% in the last 24 hours.
