Luna Foundation Guard Reveals Where Missing 80K Bitcoin Reserves Went
The Luna Foundation has broken its silence on the state of crypto reserves, saying they will look to compensate users for losses suffered due to a breakdown in algorithmic stablecoin technology.
The price of UST, which is meant to be pegged with the dollar has fallen drastically over recent weeks.
The foundation, a non-profit that was created to protect UST holders wrote on their Twitter account Monday evening they would be looking into ways of compensating those with smaller balances first. It is still debating through various distribution methods and we'll provide updates as soon as possible!
As of May 7, 2022: The Luna Foundation Guard had a reserve of 80,394 BTC among other digital assets.
The LUNA Foundation has been hard at work selling 80,000 worth of bitcoin for UST between May 8 and 10. The Luna foundation guard released a Twitter thread detailing this information on May 16.
LFG acquired bitcoins to save UST. It's not working out well for the company though. The UST coin has lost almost all of its value. At one point it was worth $1, but now only 13 cents await investors who purchased this cryptocurrency in hopes that they would make money off an investment."
The Race To Revive UST
In an effort to increase the supply of UST for prices to increase significantly, The Foundation began turning this reserve into UST on May 8th, 2022.
LFG was able to do this by executing an on-chain swap and transferring BTC immediately to the counterparty, which allowed them to create transactions with the Foundation in large sizes.
TFL was able to execute all financial, administrative, and operational duties as requested by their client through an agreement that was entered into on January 10th, 2022. This is when the value of $UST had dropped down below $0.8 creating some concern for how long this service would last before it crashed.
In a desperate attempt to keep their valued pawns from falling too far below what they were worth, the Foundation carried out the following exchange, among others.
It has been reported that at one point, LFG's publicly-known wallet address showed zero bitcoin balance. A total of 70,736 bitcoins had moved through this specific location worth over $2 billion today!
Amid the UST chaos, it seems that LFG is seeking even more funds to defend its stablecoin's peg. They haven't made any announcements in this regard since they've only obtained a small amount so far and face many challenges ahead with trying to keep up appearances while waiting for further donations or investment opportunities worth over $1 billion!