Terra (LUNA) blockchain developer Terraform Labs (TFL) has gifted the Luna Foundation Guard with 10 million LUNA worth approximately $820 million at current prices.
The Luna Foundation Guard (LFG) is a non-profit organization affiliated with Terra tasked with collateralizing the network’s algorithmic stablecoin Terra USD (UST) to keep it pegged to the US dollar.
Terraform Labs’ latest announcement came via Twitter on April 14, but didn’t provide any specifics on what the funds would be used for. However, transaction data from Terra Finder shows that 7.8 million LUNA (approximately $630 million) were immediately transferred from LFG’s reserve wallet yesterday.
— Terra (UST) Powered by LUNA (@terra_money) April 14, 2022
Given the recent form of Terra, led by founder Do Kwon, which aims to salvage 10bn worth of Bitcoin (BTC). Another part of LUNA may be burned (a way the UST/USD peg is maintained will).
Some additional Avalanche (AVAX) tokens could also be on the shopping list considering both TFL and LFG bought AVAX worth $100 million last week.
Following Terra’s recent (and ongoing) bitcoin (BTC) spending spree, which included the purchase of around 2,500 BTC ($100 million) just two days ago, LFG’s wallet has become the third-largest trader of digital gold in the world, ranking only still behind him MicroStrategy and Tesla.
The latest donation to the LFG comes just over a month since TFL donated $1.1 billion worth of LUNA for it to be burned to mint UST and grow its reserves.
According to LFG accounting records, their total reserve balance is $2.44 billion at the time of writing, with BTC accounting for about 70% of that number at $1.71 billion.
— Crypto Rover (@rovercrc) April 14, 2022
Related: Terra Price Key Support Level Breaks After 30% Weekly Drop – More Pain For LUNA Ahead?
Despite all of Terra’s recent bullish developments, LUNA’s price is down 7% in the last 30 days and is trading at $81.65 at the time of writing.
https://cointelegraph.com/news/terraform-labs-gifts-another-880m-to-luna-foundation-guard Terraform Labs is gifting Luna Foundation Guard an additional $880 million