Friday, December 9, 2022

Luna Foundation Guard Bought Another $100M In BTC

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The Luna Foundation guard bought another $100 million in BTC and converted stablecoin reserves from Luna into BTC so let’s read more in today’s latest Bitcoin news.

The Luna Foundation Guard bought 2508 BTC worth around $100 million and has a plan to amass $10 billion worth. The LFG is a nonprofit organization responsible for building the reserves that back the Terra pegged stablecoin TerraUSD. About $17 billion worth of crypto has been issued so far and became the 14th biggest digital asset by market cap. The entity’s former reserve model backed the stablecoin sign a protocol native crypto LUNA which is now the ninth-biggest at present.

As Terra co-founder Do Kwon noted that LUNA faced price stability issues that hurt its function as a reserve asset. The organization is now choosing to back the stablecoin with BTC and in the interview with Anthony Pompliano, Kwon said that the main crypto is the soundest and most credibly neutral asset in the crypto asset space. BTC still faces a strogn volatility and the price movements are less erratic than the altcoins below it. In the long term, some investors expect the asset to function like digital gold since it has a reliable supply cap of 21 million.

Terra’s Founder Revealed , do kwon, bitcoin, ust, crash
Do Kwon

The LFG holds about $2.3 billion in the reserves with three-quarters of that in BTC and the remainder is split across USDT, UsDC, and LUNA. With the rate of accumulation, LFG is on its way to surpassing Microstrategy and its BTC holdings. The business intelligence company has 129,000 BTC on its balance sheet and bought BTC for the first time in two months using a BTC-collateralized loan. The LFG finished purchasing $112 million in BTC as per on-chain data and Terra’s BTC address held less than $1 billion.

The Luna Foundation Guard is a nonprofit which wants to grow the Terra platform and announced it will purchase $100 million in AVAX tokens. This follows LFG’s recent purhcases of $1 billion in BTC and the goal is to create a reserve that helps the stablecoins maintain the pegs to fiat currencies. This all started in February when the foundation was founded by Terra co-creator Do Kwon and Terraform Labs head Nicholas Platias raised $1 billion by selling Luna tokens and the native currency of the ecosystem to Jump Crypto with Three Arrows Capital.

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