Terraform Labs gifts another $880M to Luna Foundation Guard
[ad_1]
Terra blockchain developer Terraform Labs (TFL) has gifted the Luna Foundation Guard (LFG) 10 million LUNA, worth around $820 million at current prices.
LFG is a nonprofit organization attached to Terra tasked with collateralizing the network’s algorithmic stablecoin, Terra USD (UST), to keep it pegged with the U.S. dollar.
TFL’s latest announcement came on Thursday via Twitter, but it did not outline what the funds would go toward specifically. However, transaction data from Terra Finder shows that 7.8 million LUNA (roughly $630 million) was promptly transferred out of LFG’s reserve wallet on Thursday.
TFL has gifted an additional 10 million $LUNA to the @LFG_org. https://t.co/tNirkgGGm0
— Terra (UST) Powered by LUNA (@terra_money) April 14, 2022
Given Terra’s recent form, led by founder Do Kwon — who has the goal of accruing $10 billion worth of Bitcoin (BTC) to back UST’s reserves — many expect that some of the funds will go toward building its stash of digital gold. Another chunk of LUNA may be burned (a way in which the UST/USD peg is maintained.)
Some additional AVAX could be on the shopping list as well, considering both TFL and LFG purchased $100 million worth of the coin last week.
Following Terra’s recent (and ongoing) Bitcoin buying spree, which includes the purchase of roughly 2,500 BTC (around $100 million) only two days ago, the wallet belonging to LFG has become the third-largest hodler of digital gold globally, only tailing MicroStrategy and Tesla.
The latest donation to LFG comes just over a month after TFL gifted $1.1 billion worth of LUNA so that it could be burned to mint UST and grow its reserves.
According to LFG’s accounting records, its total reserve balance stands at $2.44 billion at the time of writing, with BTC representing around 70% of that figure at $1.71 billion.
At least the Luna Foundation Guard is buying the #Bitcoin dip… pic.twitter.com/8ZiPZT9SsD
— Crypto Rover (@rovercrc) April 14, 2022
Related: Terra price key support level breaks after 30% weekly drop — more pain for LUNA ahead?
Despite all of the bullish developments with Terra of late, the price of LUNA is down 7% over the last 30 days to sit at $81.65 at the time of writing.
[ad_2]
Source link
