The Luna Foundation Guard updates the world concerning its crypto-asset reserves and shares a promise to compensate the remaining users of failed stablecoin UST.
The Luna Foundation Guard (LFG) also shared a promise to “compensate remaining users of UST, smallest holders first,” with the remaining assets.
In summary, 80,081 Bitcoin (BTC) or 99.61% of the Bitcoin that LFG guarded, has exited the fund. The group confirmed a sale of “33,206 $BTC for an aggregate 1,164,018,521 $UST” in a tweet. The remaining 47,188 BTC is not accounted for, while 313 BTC remains in reserve.
The below graphic makes clear the remaining tokens in the LFG reserve:
The reason behind the disposal and sale of cryptocurrency in the LFG reserve was to support the health of the Terra ecosystem:
2/ Consistent with its non-profit mission & focus on the health of the Terra ecosystem, beginning on May 8, when the price of $UST began to drop substantially below one dollar, the Foundation began converting this reserve to $UST.
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
The counterparty that the group used has not been named. Cointelegraph experts have compiled an analysis on the Terra ecosystem implosion, questioning the “long-term viability of algorithmic stablecoins.” The current makeup of the LFG reserve is the following:
LFG Reserve Balance Breakdown. Source: https://dashboard.lfg.org/
Meanwhile, crypto enthusiasts with staked LUNA tokens should see LUNA returned to their wallets in the next 20 days. However, it will be worth less: LUNA’s price has fallen over 99% since its highs, currently sitting at $0.0002.
What was once a $50 billion ecosystem now has a total reserve balance of $82 million, prompting popular crypto influencer Cobie to simply respond to the thread with: “Bruh.”