How the Moon Foundation Guard burned $ three billion really worth of Bitcoin in three days (and nevertheless failed)

Until now, as the information of the Luna Project story are slowly uncovered, there is nevertheless a single huge query the local community is nevertheless pondering: how substantially income has gone into the Luna Foundation Guard (LFG) fund.

On the afternoon of May sixteen (Vietnam time), LFG very first uncovered the standing of its reserve fund on Twitter, as very well as the course of action of burning billions of bucks to conserve the collapse of the FSO and the failure of people efforts.

On May seven, 2022, the LFG reserve fund owns:

– 80,394 BTC

– 39,914 sufferers

– 26,281,671 USDT

– USDC 23,555,590

– one,973,553 AVAX

– 697,344 USD

– one,691,261 MOON

During a disastrous week for the cryptocurrency market place, the Earth ecosystem with a market place cap of $ forty billion collapsed though the UST stablecoin – believed to be really worth $ one – continued to slide. The LUNA token, created as the coordinator for UST’s “algorithmic” docking mechanism, dropped from $ 80 to significantly less than $ .0002.

As for the brings about – consequences of the LUNA – UST incident, readers can see Coinlive’s report series right here:

In its submit, LFG claimed it offered most of the BTC in its reserves to UST when Earth’s ecosystem started to collapse earlier final week. The institution stated it transferred more than 50,000 BTC “to trade with a counterparty” on May eight, as UST’s selling price at first began to decline.

LFG stated that the money had been applied to “directly execute on-chain swaps and transfer Bitcoins to a counterparty to enable them to enter into exchanges with LFG on a large scale and in a short time. “

On May ten, LFG stated an additional thirty,000 BTC from its reserves had been remaining offered by Terraform Labs (TFL), the authentic organization behind Terra, “in a last ditch effort to protect UST.”

The LFG confirmed that the remainder of its reserves, after really worth more than UST three billion, had been nearly absolutely depleted due to a failed try to defend the FSO.

According to Larry Cermak, an analyst at The Block, the volume of income in the LFG fund has evaporated from $ three.one billion to $ 87 million.

The LFG stated the remaining money will be applied “to compensate UST users, giving priority to holders of the smallest amount first.” This is also a proposal backed by Ethereum founder Vitalik Buterin.
LFG’s Monday statement comes amid sturdy criticism from marketplace influencers that Terra’s reserve fund – which allegedly belongs to the “decentralized” Terra local community – has been hacked. Terra’s centralized leader and investor handles the lack of transparency .

As Coinlive commented, LFG’s deed of promoting Bitcoin is pretty reprehensible simply because in the mission statement on the site, Luna Foundation Guard stated that their reserve fund’s target is to offer you traders much more conversion alternatives. .UST in other currencies this kind of as BTC in the situation of UST de-peg, as an alternative of switching to LUNA and dragging each of them down.

The only purpose for this choice is that LFG requirements to lower UST’s provide in the market place to support this stablecoin get back to $ one, and it has no decision but to use its Bitcoin holdings to do so simply because this is the most. fantastic asset in the fund.

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two / Binance acquired LUNA 15,000,000 (peaked at $ one.six billion USD, now not substantially) as aspect of the authentic investment ($ three million). 560x return to peak. It is nevertheless on the handle we acquired at 👇. Never moved or offered.

Street handle:https://t.co/6HwTu6CCuB

– CZ Binance (@cz_binance) May 16, 2022

Synthetic currency 68

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