Luna Foundation spends almost all Bitcoins

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17 May 2022
114

Promises Compensation for UST Users: Luna Foundation Suggests Nearly Entire Bitcoin Stack Spent

While defending the UST dollar peg, the Luna Foundation Guard (LFG), the organization tasked with ensuring that it remained stable, said that it used virtually all of its bitcoin (BTC) in reserve to do so.

LFG, however, says that from what remains, the stablecoin's users would be reimbursed.

Starting with the "smallest holders first," LFG stated in a Twitter thread on Monday, adding that the particular distribution mechanism is still up in the air. UST customers will be paid.

It occurred in a post when LFG disclosed further information about its remaining reserves. BTC 313 (USD 9.26m) and BNB 39,914 were in the bank's reserves as of Monday (USD 11.74m).

There is also a greater stockpile of UST, with a market worth of over USD 180 million at (an optimistic) USD 0.10 for each UST.

LFG has spent all of its other assets, which totaled close to $4 billion, to protect the UST peg, the company said.

Significant conjecture has surrounded the disappearance of BTC from the reserve, with blockchain analytics company Elliptic, for example, delving into the subject over the weekend.

"It's not apparent whether they have been sold or if they've been transferred to another wallet," the business said at the time of LFG's demise.


According to Terra's (LUNA) founder, Do Kwon, the event has benefited neither him nor any of Terra's institutions.

Kwon wrote in a tweet on Saturday, 

"I sold no LUNA nor UST during the crisis," adding that he at the time was "working on documenting the use of the LFG BTC reserves during the de-pegging event."


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