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What Remains of Luna Foundation Guard’s 80k Bitcoin Reserve?

Tyler Irvin

Summary: The Luna Foundation Guard (LFG) announced that 80,081 Bitcoin (BTC) or 99.61% of their BTC has left the fund in order to fight off the dropping price in TerraUSD (UST), according to a Twitter thread.  Here is a live look at their current reserve according to the series of tweets.  This announcement comes a week ...

The Luna Foundation Guard (LFG) announced that 80,081 Bitcoin (BTC) or 99.61% of their BTC has left the fund in order to fight off the dropping price in TerraUSD (UST), according to a Twitter thread

Here is a live look at their current reserve according to the series of tweets. 

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This announcement comes a week after UST, an algorithmic stablecoin, lost its peg at $1, which sits at $0.06 at the time of writing, according to Bitpush Terminal data. Furthermore, their once highly valued native token, LUNA, fell from $65 on May 8, to $0.000142 at the time of writing. 

The Singapore-based nonprofit decided to sell the majority of their reserve once they saw that UST was dipping substantially below $1. In order to accomplish this, they executed “on-chain swaps and transferring $BTC to a counterparty to enable them to enter trades with the Foundation in large size & on short notice,” one of the tweets read. 

They have not named the counterparty at the time of writing. 

In addition, they sold 25,281,671 USDT and 23,555,590 USDC for an aggregate of 50,200,071 UST, while also transferring 52,189 BTC to trade with a counterparty, which was returned for an aggregate of 1,515,689,462 UST. 

Unfortunately for investors and the Terra community, these efforts along with some relative efforts failed to defend UST’s peg. 

The Do Kwon-led foundation promised to “compensate remaining users of $UST, smallest holders first,” with the remaining assets. Some of these assets are the BNB and AVAX the foundation didn’t sell, owning 40,000 and 2,000,000 of each respectively. 

The May 9 disaster for both LUNA and UST was so devastating that even Treasury Secretary, Janet Yellen, called for more regulations on stablecoins by the end of the year when she spoke at a May 10 Senate banking hearing.

The once frequently tweeting founder, Do Kwon, has gone relatively silent, with his last tweet coming on May 13, when he tweeted, “I am heartbroken about the pain my invention has brought on all of you.” 

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Author: Tyler Irvin

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