Luna Foundation Guard responsible for the UST stablecoin powered by Terra and its lead Do Kwon announced a “lend to market markers, designed to defend the peg of the stablecoin. Do Kwon has not particularly mentioned about what will happen with the provided funds, more likely the “lend” to market makers looks more likely a massive sell order. Whereas the Terra community members have expressed their frustration with the situation that emerged around the stablecoin.
The Luna Foundation Guard dumped a total of 80,081 bitcoins in early May, at the price of $33,000 which they bought at $47,000. The LFG sold an overall $1.5 billion worth flagship cryptocurrency, which is more than half of the total collateral right at the market bottom.
This was announced as a “lend” to market makers to support the dollar peg of the LFG’s UST stablecoin. The funds earned will be used to restore the lost balance of UST, says the Founder and CEO DO Kwon. he further assures of buying more bitcoin if the demand is surplus.
Further, these measures made to save USD to lose its peg did not work and the UST lost its peg crashing below $1. LUNA dropped from above $119 to $0.00001675 over two weeks ago. This has made a huge impact on the crypto market, dropping the prices of Bitcoin, Ethereum, and other major and smaller Cryptocurrencies.
whereas the largest cryptocurrency Bitcoin went below $30,00, and Ethereum has experienced a price drop under $2,000. The hard fork event of turning the old Luna into a Luna classic made recently is trading at $0.0001527 and giving the Luna title to a new coin. The freshly minted LUNA is currently trading at $6.30.
According to a recent tweet of Glassnode analytics company, entities that used to hold fewer than 100 Bitcoins in their wallets quickly bought all of the 80,081 Bitcoins dumped by Luna Foundation Guard onto the crypto market.
Whereas the comprised holdings of these wallets have by now increased to the level of 80,724. The Bitcoins sold by Luna have been bought by more than 100 different addresses, reported according to the tweet made by glassnode.