Luna Foundation Guard Empties $2.2B Bitcoin Wallet to Save UST

The Luna Foundation Guard (LFG), a non-profit organization aimed at bolstering the Terra blockchain, has recently emptied $2.2 billion worth of bitcoin from its Bitcoin reserve to save the Terra stablecoin, UST.

LFG Wipes $2.2B BTC Wallet

According to an analysis from earlier today, the wallet sent 28,205 BTC worth over $852 million. The development came after the company had earlier sent 42,530.72 BTC worth over 1.3 billion to two different addresses, emptying the wallet. One recipient got 12,530.7 BTC while the other got 30,000 BTC respectively. 

Some two hours later, 28,205 BTC worth more than $852 million was sent to the wallet. This amount has now been moved from the wallet, leaving the wallet empty.

This action was taken to keep UST pegged to the US dollar. About 20 minutes before the foundation cleared the bitcoin wallet, the price of UST had significantly dropped to $0.6, representing a 34% decrease from its price some hours prior.

With the recent downtrend of the crypto market, UST has been shaken. However, the step taken by the foundation has bolstered the price of the UST. At the time of writing, the coin was trading at $0.91.

A Follow-up on LFG’s Earlier Decision

Recall Coinfomania had reported Monday that LFG made an announcement via a Twitter thread about its decision to lend $1.5 billion from its reserves to protect the peg of UST. 

Do Kwon, co-founder of Terraform Labs, also shared a Twitter thread outlining several things about the matter. He stated that the recent development is not a move by LFG to offload its bitcoin stash. 

LFG Invests in Crypto

Luna Foundation Guard is known for its recent moves to boost its bitcoin reserves. A recent report revealed that the company had purchased $1.5 billion worth of BTC to support its store of UST. In March, Kwon had noted that LFG will acquire $10 billion worth of BTC over time.

Apart from bitcoin, the foundation has invested in other cryptocurrencies. A report from last month showed that the company purchased $100 million worth of Avalanche’s native crypto, AVAX.