Terraform Labs Donates $820M to the Luna Foundation Guard
2022.04.15 21:46
Terraform Labs Donates $820M to the Luna Foundation Guard
- Terraform Labs (TFL) has gifted 10 million LUNA, worth around $820 million at current prices, to the Luna Foundation Guard.
- This donation follows just over a month since TFL gifted $1.1 billion worth of LUNA to be burnt to mint UST and grow its reserves.
- The recent bullish announcements have yet to reflect on the price of the 9th largest coin in terms of market cap.
Terraform Labs (TFL), who is the Terra (LUNA) blockchain developer, has gifted 10 million LUNA, worth around $820 million at current prices, to the Luna Foundation Guard. This donation follows just over a month since TFL gifted $1.1 billion worth of LUNA to be burnt to mint UST and grow its reserves.
Terraform Labs made its latest announcement on Twitter (NYSE:TWTR) on April 14. However, it did not outline how the funds will be used. Transaction data from Terra Finder does show that 7.8 million LUNA, approximately $630 million, was transferred out of the LFG’s reserve wallet yesterday, just shortly after the funds were transferred.
Many in the project’s community expect that some of the funds will go towards building Terra’s stash of Bitcoin, given that the project’s founder, Do Kwon, has led the way in the mission to accrue $10 billion worth of Bitcoin (BTC) to back the UST’s reserves. Another portion of LUNA could be burned in order to maintain UST’s peg to the dollar.
LFG’s accounting records show that its total reserve balance is at $2.44 billion, with Bitcoin representing an estimated 70% of that total – approximately $1.71 billion.
LUNA news has no effect on falling price (Source: CoinMarketCap)
As can be seen from the screenshot of CoinMarketCap above, the recent bullish announcements have yet to reflect on the price of the 9th largest coin in terms of market cap. LUNA’s price has fallen just over 21% in the last 30 days and 7.91% in the last 24 hours – leaving the price at $81.45 at the time of writing.
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