Terra to Purchase $100M Worth of AVAX to Bolster UST Reserve

Luna Foundation Guard (LFG), the team behind the Terra (LUNA) network, is going beyond its Bitcoin (BTC) buying spree after announcing via a tweet on Thursday that it will purchase $100 million worth of Avalanche network’s native token, AVAX.

Terra to Purchase $100M Worth of AVAX

According to Terra, AVAX will be purchased via an over-the-counter (OTC) trade and the coin will be added as a non-correlated asset pool in the UST Reserve. 

The Avalanche Foundation will receive UST in return and Avalanche users will be able to swap UST for AVAX directly on the Avalanche network.

The move will make AVAX the second crypto asset after bitcoin (BTC) to be added to the UST Reserve.

Terra and Avalanche to Launch Gaming Subnet

Both projects are also working to create and launch a gaming subnet with a release date yet to be revealed.

The upcoming AVAX purchase follows the heels of a recent announcement from Terra that it has purchased an additional $139 million worth of BTC, bringing its total reserve to about $1.4 billion in BTC.

Terra outlined plans to purchase $10 billion worth of bitcoin in the near future to bolster its reserve and help its stablecoins remain pegged to fiat currencies.

Following the news, AVAX price is up by 5.4% on the daily chart, trading at $88.71 at press time. LUNA, on the other hand, is down by 3% and currently trading at $103.10.

Meanwhile, Coinfomania recently reported that the total value locked (TVL) on the Terra network crossed the $30 billion mark for the first time.

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  • ethereumEthereum (ETH) $ 1,286.47 1.09%
  • bnbBNB (BNB) $ 291.24 0.05%
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  • solanaSolana (SOL) $ 13.71 0.87%
  • terra-luna-2Terra (LUNA) $ 1.66 0.22%