Luna Foundation Sold 80K Bitcoin in ‘Last Ditch Effort to Defend’ UST Peg
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– The Luna Foundation Guard (LFG), the non-profit overseeing the Terra ecosystem, said that it sold almost all of the $3.5 billion bitcoin it held in reserve as a last ditch effort to defend the [UST] peg.
– The reserve now holds a mere 313 BTC, valued at just over $9.2 million at current prices.
– The Foundation had amassed the equivalent of 80,394 bitcoin in reserve, or about $3.5 billion, by May 7, one day before the spectacular collapse of the UST algorithmic stablecoin and Terras LUNA token.
– Amid the panic, the Foundation stepped in, tapping more than 80,000 BTC from its reserve in an attempt to defend the peg.
– LFG sold a total 52,189 bitcoin, worth over $1.6 billion, to the counterparty, which was then transferred to an account on U.S. crypto exchange Gemini.
– On May 10, in a last ditch effort to defend the peg, Terraform Labs, the company behind the Terra blockchain, sold another 33,206 BTC in exchange for over $1.16 billion UST.
– The intervention failed.
– LFG said that it would use the remaining assets to compensate users who lost money following the collapse of UST. The smallest holders will be paid first, it added.
