Terra’s Luna Foundation Guard buys a whooping 4130 bitcoin
Terra(LUNA) project and Luna Foundation Guard (LFG) bought 4130 bitcoin worth US$176.1 million on Sunday, April 10, 2022.
The Luna Foundation Guard (LFG) is a non-profit who seeks to grow the Terra platform by creating a reserve to maintain stablecoins’ pegs to fiat currencies. LFG announced it will purchase $100million in AVAX, Avalanche's native token after its recent purchase of 1 billion in Bitcoin. The move was intended to diversify its reserves held on LFG’s UST Decentralized Forex Reserve.
What is the Terra (LUNA) Network and its stablecoin ecosystem?
Terra is a blockchain network built with Cosmos SDK (an open-source framework for building blockchain applications) made to govern, mine, issue stablecoins. Terra’s native token, LUNA is now the 12th largest crypto by market cap, and its platform is dubbed ‘Alipay on the blockchain.’ While Terra USD is the 4th largest stablecoin by market cap.
Terra supports decentralized applications like Ethereum and Solana, but with a twist in its tokenomics. LUNA works with Terra’s stablecoins. Instead of using fiat or over-collateralized cryptocurrencies as reserves, Terra Stablecoins can be converted to LUNA at a 1:1 ratio. LUNA can then be used to pay network fees, participate in governance, stake LUNA and create their own pegged stablecoins.
Terra was created by Do Kown and Daniel Shin of Terraform labs in South Korea and uses Tendermint Delegated Proof-of-Stake (DPoS) consensus mechanism. It provides smart contracts for users to create a wide range of different stablecoins. Tera has stablecoins pegged to the US dollar, South Korean Won, and Euro and more.
LFG Holds $1.7 Billion in Bitcoin Reserves
LFG now holds 39,897.98 bitcoin worth $1.7 billion. Glassnode, an on-chain market intelligence reported that more Bitcoin was being accumulated every day than minted, partially due to the fact that whales like LFG and MicroStrategy subsidiary MacroStrategy were buying and holding BTC in bulk. As the buying by the big companies is causing supply to decrease, the price of Bitcoin is on an upward momentum.
LUNA’s price reached an all-time high of US $119.18 this week.
Photo: Luna Foundation Guard