in

LFG “burned” almost 3 billion dollars in 2 days to save the LUNA project

When UST fell below $1, Terra used all of its reserve assets, worth nearly $3 billion, to prop up the stablecoin. However, the previous attempt was unsuccessful.

Faced with many doubts from the community about where Terra’s 3,000 million dollars of reserves went, on the afternoon of May 16, Luna Foundation Guard (LFG) published detailed information on the cash flow that this organization used in the last days. via. Consequently, this fund spent almost 3 billion dollars in two days just to save the price of UST. However, the attempt failed completely.

Specifically, before the crash, LFG held 80,394 Bitcoin, 89,914 BNB, 26.3 million USDT, 23.6 million USDC, 1.9 million AVAX, 697,344 UST, and 1.6 million LUNA. As of May 7, the total assets listed above are worth approximately $3.08 billion.

As announced by LFG, on May 9, the fund directly sold all USDC and USDT it held to buy UST after the stablecoin showed signs of losing the $1 mark. The total amount used is 50.2 million dollars. The fund then transferred 52,189 BTC to a partner in exchange for 1.5 billion UST. Due to the difference, the buyer reimbursed Luna Foundation Guard 5313 Bitcoin.

He spent over $1.5 billion in one day, but still Terra can’t get his constant amount back to the $1 mark. On May 10, UST fell sharply to $0.75/dong. When the situation became dire, TerraForms Laboratories performed relief work on behalf of the Luna Foundation Defense Team. The organization exchanged 33,206 Bitcoins for 1.1 billion UST. Therefore, almost all the Bitcoins stored by the LFG side were completely spent, while the amount of AVAX and BNB remains the same.

At the same time, due to the urgent need to sell to save the 1 USD mark for UST, all Terra Bitcoins are lost. The lowest price LFG bought with Bitcoin was around $37,000-38,000 per coin. But most of the BTC is being sold at $30,000-33,000.

According to published statistics, Luna Foundation Guard’s asset reserves currently include 313 BTC, 39,914 BNB, 1.9 million AVAX, 1.8 million UST, and 222 million LUNA. Of which, 221 million LUNAs are placed in the system to perform authentication and anti-attack tasks. At current market prices, the fund’s total assets are valued at approximately $250 million. That means Terra spent $2.83 billion in just a few days.

However, these efforts are completely futile when both UST and LUNA are in deep decline, Terra’s ecosystem nearly collapsing. The LFG side said that the meager amount remaining will be used to compensate those who still have TerraUST so far. Consequently, small wallets will be prioritized for relief first.

However, this $250 million is just “salt in the bucket” compared to the total supply of 11.2 billion UST. If divided equally, each UST in circulation would convert to $0.022, 45 times less than the standard $1.

After the information was announced that the Terra relief fund had almost run out of money, the price of LUNA continued to fall sharply. This digital currency is trading around the $0.0001 mark. The total capitalization of the project is only about 800 million dollars.

How to make Steve Jobs’ dream come true on iPhone?

What did Apple launch during the September event?