The Luna Foundation Guard updates the world concerning its crypto-asset reserves and shares a promise to compensate the remaining users of failed stablecoin UST.
The Luna saga continues. In a Twitter thread, the team behind the failed algorithmic stablecoin UST and the token LUNA shared precisely how much Bitcoin and crypto assets they had disposed of.
The Luna Foundation Guard (LFG) also shared a promise to “compensate remaining users of UST, smallest holders first,” with the remaining assets.
In summary, 80,081 Bitcoin (BTC) or 99.61% of the Bitcoin that LFG guarded, has exited the fund. The group confirmed a sale of “33,206 $BTC for an aggregate 1,164,018,521 $UST” in a tweet. The remaining 47,188 BTC is not accounted for, while 313 BTC remains in reserve.
Interestingly, LFG has not sold a single Binance Coin (BNB) or Avalanche (AVAX), holding circa 40,000 and 2,000,000 of each token, respectively.
The below graphic makes clear the remaining tokens in the LFG reserve:
The reason behind the disposal and sale of cryptocurrency in the LFG reserve was to support the health of the Terra ecosystem:
2/ Consistent with its non-profit mission & focus on the health of the Terra ecosystem, beginning on May 8, when the price of $UST began to drop substantially below one dollar, the Foundation began converting this reserve to $UST.
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
The counterparty that the group used has not been named. Cointelegraph experts have compiled an analysis on the Terra ecosystem implosion, questioning the “long-term viability of algorithmic stablecoins.” The current makeup of the LFG reserve is the following:
LFG Reserve Balance Breakdown. Source: https://dashboard.lfg.org/
Related: LUNA meltdown sparks theories and told-you-sos from crypto community
Meanwhile, crypto enthusiasts with staked LUNA tokens should see LUNA returned to their wallets in the next 20 days. However, it will be worth less: LUNA’s price has fallen over 99% since its highs, currently sitting at $0.0002.
What was once a $50 billion ecosystem now has a total reserve balance of $82 million, prompting popular crypto influencer Cobie to simply respond to the thread with: “Bruh.”