LFG purchased almost 36k Bitcoin so far, which is worth about $1.6 billion at current pricing to establish a reserve for Terra network stablecoin UST.
Luna Foundation Guard (LFG) purchased roughly 35767.98 BTC worth about $1.63 billion according to on-chain analytics since they started buying to establish a bitcoin reserve to back its stablecoin, TerraUSD (UST).
Despite the fact that many in the Bitcoin community were quick to point out that the project is fundamentally different from others based on on-chain bitcoin, such a large BTC purchase had an undeniable impact on the Bitcoin ecosystem and, quite probably, the price.
However, despite positive signals such as new buy-ins from MicroStrategy and LFG, things have not gone as planned for Bitcoin, which continued its downward trajectory early Thursday, hitting below $43,000 for the first time since April.
LFG is a Singapore-based non-profit that aims to increase demand for Terra’s stablecoins in order to “bolster the UST peg’s stability and help the Terra ecosystem’s expansion.”
The Luna Foundation Guard revealed the idea to construct a Bitcoin reserve for Terra’s UST stablecoin late last month when it stated that it had secured $1 billion from crypto-focused venture capitalists for this purpose. To raise funds, Terra’s LUNA tokens were privately sold.
The LUNA Foundation Guard (LFG) intends to increase its Bitcoin reserves to $3 billion, with a long-term goal of increasing the pool to $10 billion, which might result in a boom in UST demand, permanently removing additional LUNA tokens from active production.