Thread by @eight_global

𝐒𝐨𝐦𝐞𝐨𝐧𝐞 𝐢𝐬 𝐛𝐮𝐲𝐢𝐧𝐠 $𝟏𝟐𝟓𝐦𝐥𝐧 𝐨𝐟 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐞𝐯𝐞𝐫𝐲𝐝𝐚𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐧𝐞𝐱𝐭 𝐰𝐞𝐞𝐤, 𝐛𝐮𝐭 𝐲𝐨𝐮 𝐰𝐨𝐮𝐥𝐝𝐧'𝐭 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐢𝐭.

A thread 🧵 on why Do Kwon is buying #Bitcoin and the impact it has on the crypto ecosystem.

Buckle up!

1/ Before getting into the juice some background information on Do Kwon and the #Terra ecosystem.

Do Kwon is the founder of #Terra. You can find him on Twitter under the handle @stablekwon where he tweets about his fascination for decentralized money and ... Lego 🤣?

2/ #Terra is a smart contract network, similar to #Ethereum. Its open-source nature allows anyone to build on top of it and create DeFi projects, NFTs, etc.

The $LUNA token secures the ecosystem and is used as gas to pay for transactions.

3/ Currently, #Terra is much cheaper and faster than #Ethereum. Users pay sub $1 transaction fees for their day-to-day DeFi activity on the network. Incredible!

(fees ususally range between $0.02 - $0.50)

4/ What makes #Terra stand out is their unique take on #stablecoins. There are a number of native stablecoins on the network.

Almost every major fiat currency has a tokenized #Terra version: the Swiss Franc, Korean Won, Euro, Dollar, etc.

Why is this important you may ask?

5/ Well, those stablecoins form an integral tokenomics layer for $LUNA.

Every new #Terra stablecoin in circulation is minted by BURNING an equal value of $LUNA.

6/ Thanks to the popularity of the #Terra ecosystem and the #Anchor savings protocol billions of $UST have been minted, subsequently burning great amounts of $LUNA.

Below is a chart from terra.smartstake.io/ust showing how $UST supply grew from sub 1bln to 16bln!

7/ The next chart shows that the total supply has been in a steady decline ever since October of last year.

The red bars signal that $LUNA has been burned on the day.

8/ In order to strenghten the peg of the #Terra stablecoins and support the ecosystem, a non-profit organization was founded: the @LFG_org (Luna Foundation Guard).

On the 22nd of February it was announced on Twitter that the LFG raised $1bln in a private token sale. But why?

9/ Well, the raised money will function as a decentralized $UST Forex Reserve.... denominated in $BTC.

Whenever $UST fails to maintain peg, this reserve can be put to work to ensure that the stablecoin gets back to peg.

10/ This means that $UST is now also partially backed by $BTC! A true gamechanger.

With this out of the way, let's talk about those $125mln BTC buys 👇

11/ The raised funds have been gathered in the 0xad.. wallet [1] and over the past 4 days they have made several $125mln transfers to Binance.

The buying of Bitcoin has begun.

[1] wallet: etherscan.io/address/0xad41…

12/ The bought Bitcoin is then gathered in the bc1q.. wallet [2] and is now sitting at >21,000 $BTC with more to come.

[2] bitinfocharts.com/bitcoin/addres…

13/ With four $125mln buys, 50% of the $UST Forex Reserve has been established, meaning we could expect four more buys over the coming days.

However, it seems that more buys might be on the horizon!

14/ Do Kwon tweeded that he intends to establish reserves of $10bln+ in $BTC eventually with $3bln already on stand by to seed this.

With only $500mln deployed, we might see twenty more $125mln buys.

15/ Exact details on whether or not Do Kwon is intended to do so are missing.

What we can say is that his buys directly or indirectly brought back bullish sentiment to the crypto space and we are excited to see what else is coming from Do Kwon and #Terra in the future!