Luna Foundation Guard Buys Additional $1.5B Worth Bitcoin
The Luna Foundation Guard has purchased additional 37,863 Bitcoins to its reserve fund with help from Genesis Trading and Three Arrows Capital.
The nonprofit organization Luna Foundation Guard (LFG), which launched earlier this year to stabilize Terra’s UST stablecoin, announced the latest BTC buy on Thursday on Twitter. Its total Bitcoin holdings currently stand at around 80,394 BTC. LFG in short period of time has become one of the world’s biggest Bitcoin “whales” with a total worth of the leading crypto asset standing at around $3 billion.
— LFG | Luna Foundation Guard (@LFG_org) May 5, 2022
LFG was formed by Terra’s development company, Terraform Labs, in January 2022 in an effort to support the Terra ecosystem. Back then, Terraform Labs CEO, Do Kwon, said that the aim was to “continuously support the peg stability of Terra’s stablecoins” and other developments in the Terra ecosystem.
Kwon and his entities have received a lot of crypto news coverage in the past months after the foundation committed to acquire Bitcoin and other crypto assets such as AVAX to build as a reserve fund for their USD-pegged stablecoin UST.
Kwon made several announcements on LFG’s large Bitcoin purchases to add to the reserve fund, which have shown to be bullish for Terra’s LUNA. According to Kwon, LFG has a long-term plan to buy a total of $10 billion worth BTC. He has also made it clear that he wants to see UST become crypto’s dominant “decentralized money” stablecoin, openly slamming MakerDAO’s DAI, another decentralized competitor in the stablecoin market, and proposing a Curve “4pool” that aims to starve DAI of liquidity.
Despite LFG’s aggressive buying, its recent moves have not really helped to add to the market sentiment. Bitcoin took another dip today, erasing Wednesday’s gains which happened after the Federal Reserve’s 50-point interest rate hike.
At the time of writing, BTC trades $36,490, down 8% on the daily chart.
