Terraform Labs gifts another $880M to Luna Foundation Guard

Terra (LUNA), blockchain developer Terraform Labs, (TFL), has given the Luna Foundation Guard 10,000,000 LUNA at current prices.

Luna Foundation Guard (LFG), a non-profit organization attached to Terra, is tasked to collateralize the network’s algorithmic safecoin Terra USD to keep it pegged to the U.S. dollar.

Terraform Labs announced its latest news via Twitter on April 14. However, it did not specify where the funds would go. Terra Finder transaction data shows that 7.8 Million LUNA (roughly $630,000,000) was quickly transferred from the LFG reserve wallet yesterday.

TFL donated an additional 10 million $LUNA for the @LFG_org. https://t.co/tNirkgGGm0
— Terra (UST), Powered by LUNA [@terra_money] April 14, 2022

Many believe that Terra’s current form, which is led by Do Kwon, has the goal to accumulate $10 billion of Bitcoin (BTC), in order to back the UST’s reserves. A portion of LUNA could be burned (a method by which the UST/USD peg can be maintained).

An additional Avalanche token (AVAX token) could also be in the shopping cart, as both TFL and LFG bought $100 million worth AVAX last Wednesday.

Terra’s recent and ongoing Bitcoin (BTC), buying spree which included the purchase of approximately 2,500 BTC ($100 Million) just two days ago has seen LFG’s wallet become the third largest hodler of digital golden globally. It is only behind MicroStrategy, Tesla, and MicroStrategy.

TFL donated $1.1 billion of LUNA to the LFG just over a month ago. This was so it could be burned to make UST and grow its reserves.

According to accounting records of the LFG, the total reserve balance of the LFG stands at $2.44 Billion at the time of writing. BTC represents around 70% of that figure at $1.71 Billion.

At least the Luna Foundation Guard is buying the #Bitcoin dip… pic.twitter.com/8ZiPZT9SsD
— Crypto Rover (@rovercrc), April 14, 2022

Related: Terra price support level breaks following a 30% weekly drop — more pain ahead for LUNA?

Despite the positive developments in Terra, the price for LUNA has fallen 7% in the past 30 days to $81.65 at the time this article was written.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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