"New Grayscale" Luna Foundation, how many more bitcoins do you want to buy?

Author: Rhythm BlockBeats

"Except for Satoshi Nakamoto, we will become the world's largest single holder of BTC." Terra founder Do Kwon said in an interview.

Do Kwon is not just a joke, in the address marked as Luna Foundation (Luna Foundation Guard), the bitcoin holdings are increasing. Started to build positions on January 27, and the frequency of holdings has increased significantly recently, with an average increase of about 3,000 bitcoins in two days. There is even a view that part of Bitcoin's recent rise is related to the Luna Foundation's holdings.

This is very reminiscent of Grayscale in 2020. Institutions hold Bitcoin through Grayscale, so that Grayscale’s Bitcoin holdings continue to increase. Now, Grayscale has 640,000 bitcoins in its hands.

Luna Foundation holdings data, Rhythm will continue to update

The logic of Terra buying Bitcoin is very simple, they need Bitcoin as an endorsement .

As a pure financial ecology, Terra has its own native stablecoin UST, which is an algorithmic stablecoin. Another native Token LUNA.

But when the Terra ecology develops to the present, this TVL ranks the second super network in the world, and UST is one of the most important assets in the ecology, just a LUNA Endorsements are risky. There have been many articles or viewpoints discussing the possibility of Terra's ecological death spiral. So Do Kwon thought of a way and chose to use Bitcoin as an endorsement.

Bitcoin is used as the keynote of the industry, generally as a market signal, and fluctuations represent the sentiment of the secondary market, but few use Bitcoin as an endorsement, at most Cross-chain Bitcoin to other L1s to allow Bitcoin to be used. The last project that used Bitcoin as an endorsement was Blockstack, which is now renamed Stacks, but the logic of Stacks is to use the security of Bitcoin as an endorsement, not the price.

Tether’s USDT actually has some bitcoins as collateral, but very few, this is officially disclosed. But USDT is centralized, so some UST backed by Bitcoin is considered a new species in the industry.

According to Do Kwon, how much does he have to buy to become the world's largest Bitcoin holder besides Satoshi Nakamoto?

Satoshi Nakamoto estimates that there are about 1 million bitcoins. But Grayscale is only a channel, and should not be counted as a single holder in theory. What meets this definition is Block.one, the parent company of EOS. Just a few days ago, Brock Pierce, the co-founder of Block.one, mentioned that Block.one now has 240,000 bitcoins. Back then, EOS raised US$4.2 billion in financing and bought 140,000 bitcoins, and then continued to increase its holdings, reaching its current volume.

Theoretically, the Luna Foundation has to increase its holdings of more than 200,000 bitcoins to achieve its goal. At the same time, Do Kwon also said that UST’s endorsement will not only include Bitcoin, but also other assets. Once the idea lands, Luna's "grayscale" form is more perfect.

The Terra chain is becoming more and more interesting now. There used to be many networks that were going to be financial public chains, but none of them came out. Terra is more like an experiment. But the experiment is becoming more and more true.

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