Saturday, November 26, 2022

Did LUNA Foundation Sell Its Bitcoin (BTC)?

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It appears that the Luna foundation is taking steps towards rectifying the volatility issues that its digital tokens are facing. A wallet address that market players have traced to be Luna’s, has sold $1.4 billion worth of Bitcoin (BTC). Market observers are speculating that the move is sketchier than it looks.

Where are the funds being sent to?

Luna emptied their Bitcoin reserve, and although it is not certain where the transferred Bitcoins are being moved to, the move has drawn in a lot of criticism from onlookers in the crypto space. Following the $1.4 billion withdrawal, the funds were split into two 12,530 Bitcoins and 30,000 Bitcoin. It also appears that a part of the Bitcoins has been sent to Okex exchange.

Luna’s founder took to twitter to set the records straight, explaining the reason for the transaction.

“Haven’t sold bitcoin yet – the txn just went out. It’s a loan to a market maker – if UST imbalance happens we will use BTC to rebalance, and if demand is surplus we will buy BTC We plan to eventually redeem this entire clip in bitcoin, let’s see.” He tweeted.

Luna continues to shed losses while observers anticipate the next possible move

Meanwhile, LunaUST has responded to the move with continuous decline. At the time of this report, data from Coinmarketcap shows that daily losses have surpassed 6%. The price of TerraUST nosedived on Saturday to an all-time low, and has since lost its $1 peg to the United state’s dollar. Although the this is the first time TerraUST is taking a major hit since January, there’s no telling when it will reclaim $1, and how soon that will be.

One observer shared his sentiments, reckoning that the Luna Foundation is using UST to stir up a crypto market crisis. His sentiments are mirrored by many others, who insisted that Luna might be trying to create a black swan situation.

“UST creating crypto’s crisis, just like the subprime crisis in GFC 2008. Unlike the fed where they can print unlimited money, this will only drag everything lower. It’s best they just let this Ponzi burn to hell.” The observer tweeted.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.



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