The Luna Foundation Guard, the non-profit organization, focused on backing the TerraUSD algorithmic stablecoin, has recently been on a Bitcoin shopping spree, snapping up a considerable sum of BTC and adding it to its already existing portfolio.
The foundation purchased a further $173 million in Bitcoin over the weekend through a series of purchases.
Significant Weekend Purchase
As mentioned earlier, the foundation purchased a further $173 million in Bitcoin over the weekend. The latest purchase means that the Luna Foundation Guard now holds 39,897.98 BTC in its wallet, worth around $1.67 billion. The BTC is required to prop up the price of the native UST stablecoin and maintain its Dollar peg during times of extreme volatility.
However, Luna Foundation’s latest purchase has had fairly little impact on the price of BTC, with the cryptocurrency rising by only 1.43% over the past 24 hours.
A Series Of Buys
The Luna Foundation Guard has made a series of significant purchases over the past week. The foundation had purchased $230 million worth of Bitcoin on the 6th of April and then purchased $200 million worth of AVAX on the 8th of April.
Earlier, Terra founder Do Kwon had stated that the foundation had outlined plans to purchase $10 billion worth of Bitcoin and usher in a new monetary era of the Bitcoin standard.
“$UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard. P2P electronic cash that is easier to spend and more attractive to hold #btc.”
The foundation’s buying spree began in February when it held a $1 billion sale of the $LUNA token to build a stablecoin reserve denominated in the world’s largest cryptocurrency.
Terra And Avalanche Consolidate Partnership
Terra Luna had also announced that it is strengthening its collaboration with Avalanche through a $100 million treasury swap between the Luna Foundation Guard and the Avalanche Foundation. As mentioned earlier, the foundation had purchased a significant amount of BTC on the 6th of April.
The OTC purchase of AVAX makes it the largest crypto asset added to Luna Foundation’s treasury outside of BTC, further boosting the non-correlated asset pool and supporting the UST and Dollar peg.
Speaking about the partnership with Avalanche, Do Kwon stated,
“Avalanche is still a growing ecosystem…a lot of it is fueled by loyalty to the AVAX token, and users feel a lot of affinity with an asset that aligns itself with AVAX,” Kwon said. “Whereas for the average Ethereum user, aligning yourself with Ether doesn’t really mean that much. While Bitcoin will remain the “main backing” of UST stablecoin, the deal with Avalanche “buys a lot of user familiarity” for UST and Terra from Avalanche,”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
