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Luna structure guard pulls ahead in Bitcoin backing for UST

Luna Foundation Guard Pulls Ahead In Bitcoin Backing For UST

The Luna Foundation Guard (LFG), a non-profit devoted to the Terra environment, stated on Thursday that it has bought $1.5 billion in bitcoin (BTC) for its stable coin reserves.

LFG revealed that it had acquired 37,863 bitcoins ($ 1.5 billion) through over-the-counter swaps with Genesis Trading and Three Arrows Capital. One billion dollars originated from an OTC swap with Genesis, while the staying $500 million originated from Three Arrows Capital.

With Thursday’s declaration, Luna Foundation Guard’s bitcoin reserves have increased to $3.5 billion, putting it 30 percent closer to its stated goal of $10 billion. According to data from BitInfo Chart’s “Bitcoin Rich List,” LFG’s wallet ended up being the seventh-largest single BTC holder as an outcome of the acquisition.

The LFG is obtaining bitcoin as part of its efforts to develop reserves for the TerraUSD (UST) stablecoin. Do Kwon, the CEO of Terraform Labs, has contributed money to assist the charity to finish its bulk BTC acquisitions.

Luna Foundation Guard’s financial investment in AVAX tokens

The LFG had likewise acquired $100 million in avalanche (AVAX) tokens for its stable coin reserves, in addition to bitcoin. LFG had bought $231 million in bitcoin the day before to increase its UST reserves, however, this seems the very first time the business has bought another cryptocurrency. LFG is presently a significant market purchaser of AVAX, regardless of its market share being substantially lower than bitcoins.

Luna Foundation Guard to Buy $100 Million in Avalanche to Backstop Terra -  Decrypt

LGF required Twitter to state,

” Welcoming $AVAX as the 2nd significant layer one crypto property beside $BTC as part of the $UST Reserve. The addition of @avalancheavax’s native token marks the start of a varied swimming pool of layer one crypto possessions assisting support the $UST peg.”

Stablecoins are digital currencies whose market price is connected to a more steady property. The Luna Foundation Guard is getting closer to its objective of accumulating $10 billion in bitcoin to support the United States Terra stablecoin or UST.

The LFG’s relocation belongs to a growing pattern of algorithmic stablecoins gathering crypto possessions as security. The USDD stablecoin from Tron is likewise due to be release, with preparing for a $10 billion security reserve.

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