Non-profit organization collects 1 billion USD to create a Bitcoin reserve and to support the growth of the Terra ecosystem

Non-profit organization collects 1 billion USD to create a Bitcoin reserve and to support the growth of the Terra ecosystem

A non-profit organization that works to scale the territory of the Terra Blockchain has raised $ 1 billion in private token sales.

With the financing, the Luna Foundation Guard (LFG) is planning to set up a Bitcoin reserve for Terra's VAT-StableCoin.

"The UST Forex Reserve is an initiative for providing another level of support by assets that are considered less correlated with the Terra ecosystem, initially with Bitcoin, but with plans to extend to other important assets within the market," said the foundation.

Jump Crypto and Three Arrows Capital led token sales, with the participation of Defiance Capital, GSR, Republic Capital, Tribe Capital and others.

The increase is in addition to the Nydig financing round of $ 1 billion, which increased its rating in December to over $ 7 billion, one of the largest in the area of crypto.

Terra, a rapidly growing blockchain, now supports more than 70 projects .

As an algorithmic stable coin, VAT is bound to a number of financial aspects within the Terra protocol, which leads to movements above or below $ 1. Luna-Terras Reserve, Staking and Governance Asset-keeps an elastic offer to neutralize the market pressure.

"[it's] $ 1 billion to absorb liquidity bottlenecks," said Kanav Kariya, President of Jump Crypto. tweeted . "All contractions in the economy caused a reflex -like movement (by design). Allows a large part of the payments [a] short span of different means can be really effective."

The token sale will initially capitalize from its VAT-FOREX reserve, whereby investment purchases are blocked over a four-year blocking period.

Further details about the function of the reserve will be published in the coming weeks, the foundation said. LFG was not available for further comments.

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The article Nonprofit Raized $ 1b to Create Bitcoin Reserve, Support Terra Ecosystem Growth is not a financial advice.