Thursday, December 1, 2022

Avalanche Says LFG Has Disclosed No Plans For The AVAX Tokens

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Avalanche says LFG or the Luna Foundation Guard disclosed no plans for the AvAX tokens but also said it is ready to work with it on a sensible trading strategy if the tokens are going to be sold so let’s read more today in our latest cryptocurrency news.

Avalanche is a smart contract blockchain that said that the Luna Foundation Guard behind the backing of Terra’s UST stablecoin which has now failed, disclosed no plans for the 2 million AVAX tokens that are sitting in its treasury:

“Given the proposed Terra chain fork, LFG has disclosed no plans to use the AVAX. Should any sales be contemplated for the LFG reserves, the Avalanche Foundation is ready to work with LFG on a sensible trading strategy.”

With the tokens’ price trading at $30 per token, the market value of the AVAX stash is about $60 million which made it the second-biggest holding in LFG’s $240 million treasury. Avalanche said that it provided the update because some members of the community inquired about more details about its AVAX reserves. Crypto traders got speculated on what the plans were for the AVAX tokens and what the market impact might be from the sales. The announcement came as the entities with stronger ties to the Terra ecosystem including the $8 billion layers 1 blockchain are facing demands for bigger transparency from the community as they reckon with the latest market events.

Avalanche revealed that Terra’s developer Terraform Labs holds 1.1 million AVAX tokens in another tweet. TFL’s tokens are subject to a one-year lock-up. The tokens held by the TFL and LFG represented 0.5% and 0.9% of the token’s weekly volume:

“The AVAX is currently immobilized.”

The Luna Foundation guard and Terraform Labs both supported the blockchain and announced they acquired $200 million worth of AVAX tokens from the foundation. The Avalanche foundation also recieved $100 million worth of LUNA from terraform Labs and 100 million worth of UST stablecoin. LUNA was trading at less than a cent and UST at 8 cents which marked a huge drop in the token’s value.

avax totalmarket cap
AVAX total market cap at $8.98 billion on the daily chart Source

As earlier reported, The “Ethereum killer” dropped to more than 16% after the market meltdown last week. Avalanche declines by 16% and took with it a few of the other smaller-cap altcoins, so it is now trading at $27.94. AVAX is leading the bearish action that placed the token down by 80% compared to the ATH which was recorded in November 2021, at $146.

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