Terra has been the talk of the cryptocurrency market since Kwon announced last month that it will eventually buy US$10 billion in Bitcoin to serve as a reserve to back its decentralised stablecoin. The coins are used to facilitate trading on exchanges by minimizing the volatile price swings seen by most cryptocurrencies. Kwon’s Singapore-based Luna Foundation Guard has helped purchase more than US$1.4 billion of Bitcoin so far.
Do Kwon, the founder of Terraform Labs, which powers the Terra blockchain, said the Bitcoin market is “liquid” enough to handle any potential de-pegging of its stablecoin.
“People need to have a little bit more faith in crypto,” the South Korean entrepreneur said during an interview Monday on Bloomberg Quicktake. “If you look at Bitcoin, it turns over more than US$20 billion ($27.14 billion) per day and I think with time, it’s going to be even more liquid.”
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