Terraform Labs Gifted $800 Million in LUNA To Luna Foundation Guard | CryptoGazette
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It’s been revealed that Terraform Labs has gifted 10 million LUNA ($880 million) to the Luna Foundation Guard to help boost the stability of the stablecoin UST.
According to the reports, the funding will likely go toward the foundation’s goal of acquiring additional collateral — so far in the form of bitcoin (BTC) and avalanche (AVAX) — to underpin UST.
More than that, it may also be partially burned to help maintain UST’s peg to the US dollar.
Terraform Labs is the development firm behind the Terra blockchain and the UST stablecoin.
This founded the Luna Foundation Guard, a Singapore-based non-profit, in January and tasked it with maintaining the stability of Terra’s algorithmic stablecoins and to buy all reserve assets for UST on behalf of the Terra stakeholders.
LUNA in the news
There are some pretty bullish moves that are taking place in the crypto space despite the price volatility these days. Check out the latest reports below.
Ethereum challenger Terra (LUNA) continues to build up its Bitcoin (BTC) reserves. This is happening as the world’s largest crypto exchange Binance adds support for its stablecoin, TerraUSD (UST).
Terraform Labs CEO Do Kwon posted on Twitter that the Luna Foundation Guard (LFG) has purchased $100,000,000 more worth of the leading digital asset.
“[Luna Foundation Guard] bought an additional $100 million worth of BTC for UST FX [foreign exchange] reserves.”
Previously, Kwon had said that Terra plans to buy up a staggering $10 billion worth of the top crypto asset by market cap in order to back UST. This is its native dollar-pegged stablecoin.
It’s also important to note the fact that the most recent purchase brings LFG’s total value of Bitcoin held in its reserves to $1.72 billion.
As the stablecoin issuer continues to buy BTC, the leading crypto exchange platform Binance recently announced it would be adding support for UST.
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