BTC Price Surges after $125 Acquisition by Do Kwon

After speculations rising about the stablecoins blockchain Terra wanting to acquire Bitcoin (BTC) in the amount of $3 billion, the price of the biggest cryptocurrency has incurred a 3.5% leap to $43k on Tuesday.

Seemingly, the South Korean founder of Terra, Do Kwon, said too much when he revealed to maxi Udi Wertheimer that Terra (UST) would be supported with Bitcoin (BTC) apart from Terra (LUNA) in a Twitter space discussion.

This information alone was influential enough to send crypto enthusiasts after the blockchain which naturally is Ethereum, with a Gnosis safe address purportedly belonging to Terra (LUNA) transferring $125 million in the US Dollar pegged stablecoin Tether (USDT).

The amount of Tether (USDT) and USD Coin (USDC) in the address was close to $2 billion. A total of $125 million was lately sent to what appears to be an address of Binance. The shift also occurred at the same time as the value of Bitcoin (BTC) began to rise.

As a result, the project is likely to follow the example of MakerDAO in diversifying the assets that have a key role in the DAI sustenance, with Bitcoin (BTC) being the first in line. 

Nonetheless, Terra (LUNA) has incurred a daily decline of 2.5%, possibly because it might be better to retain Bitcoin (BTC) alternatively, particularly if the Telegrammed transaction is completed.

The fact that no confirmation has been made yet or there is no official statement issued on the matter, they are off the hook in terms of carrying this out. Still, it is plausible that they would want to have Bitcoin (BTC) and Ethereum (ETH) for reserves seeing as their moves on the blockchain are quite scrutinized.