The organization’s reserve contains 80 393,82 BTC

Luna Foundation Guard bought another $1,5 billion worth of bitcoins

06.05.2022 - 13:25

289

2 min

What’s new? On May 5, the Luna Foundation Guard (LFG), the non-profit organization created to support the TerraUSD (UST) stablecoin, bought another 37 863 BTC worth $1,5 billion. The transaction was conducted in the over-the-counter market with the participation of Genesis Global Trading and Three Arrows Capital. The organization’s reserve now contains 80 393,82 BTC ($2,87 billion at the exchange rate on May 6). TerraUSD (UST) ranked among the top 10 cryptocurrencies by market capitalization, according to CoinMarketCap. This was reported by the representatives of LFG on Twitter.

What is known about LFG? It is a non-profit organization that was established in January 2022 with the aim of developing the Terra ecosystem and increasing the sustainability of its stablecoin. The project is overseen by an independent board of governors that includes industry experts, involving Terraform Labs CEO Do Kwon.

What is known about Terra? It is an open-source blockchain protocol for creating dApps ranging from DeFi and payment platforms to games and NFTs. The platform also produces algorithmic stablecoins: Terra USD, Terra KRW, and Terra SDT. LUNA is the native token of the blockchain.

What preceded it? On March 26, LFG acquired $1 billion worth of bitcoins, on March 30, added another 2 943 BTC worth $138.5 million, and on April 7, bought $200 million worth of AVAX tokens. On April 9 and 10, the project bought $173 million worth of bitcoins. On April 13, LFG added another $2508,94 BTC worth $100,7 million.

The co-founder of the Terra protocol, Do Kwon, stated that he intended to use BTC reserves to secure the UST stablecoin, as the cryptocurrency was liquid and the best collateral. The fund plans to purchase $10 billion worth of bitcoins.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy