Luna Foundation Guard announces it has sold more than $2,400,000,000 worth of Bitcoin (BTC) at the height of the TerraUSD collapse
The Luna Foundation Guard (LFG) reports that it dumped more than $2.4 billion worth of Bitcoin (BTC) last week as the stablecoin TerraUSD (UST) collapsed.
LFG, a nonprofit founded to support the Terra (LUNA) ecosystem, held a reserve of 80,394 BTC as of May 7.
Explains the LFG in a long series of tweets,
“Consistent with its charitable mission and focus on the health of the Terra ecosystem, the Foundation began converting this reserve into UST on May 8th, when the price of UST began falling well below $1.
The Foundation did this by doing on-chain swaps directly and transferring BTC to a counterparty to enable it to transact with the Foundation on a large scale and in the short term…
Transferred 52,189 BTC to trade with a counterparty, less an excess of 5,313 BTC they returned, for a total of 1,515,689,462 UST.”
Terraform Labs sold another 33,206 BTC after UST dropped to $0.75. TerraUSD is trading at $0.087983 at the time of writing.
In total, LFG and Terra sold 80,082 Bitcoin. As Bitcoin is trading for $30,161 at the time of writing, that sum is worth more than $2.4 billion.
LFG plans to use its remaining holdings to compensate UST’s remaining users.
“The foundation intends to use its remaining assets to compensate the remaining users of UST, the smallest holders first. We are still discussing different distribution methods, updates coming soon.”
8/ As of now, the remaining reserves of the Foundation consist of the following assets:
313$BTC
39,914$BNB
$1,973,554 AVAX
$1,847,079,725 VAT
222,713,007 $LUNA (of which 221,021,746 are currently staked with validators)
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
Check the price action
Don’t miss a thing – Sign up to receive crypto email alerts straight to your inbox
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
 
Check the latest headlines
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Konst787/PurpleRender
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.