Earlier today, Terraform Labs announced on Twitter that it had donated 10 million Luna to the Luna Foundation Guard(LFG). The LFG is a treasury that supports the growth and development of the Terra ecosystem.
LUNA is Growing
The LFG has been creating cryptocurrency reserves, accumulating more Bitcoin since the beginning of the year. The foundation currently has over 40,000 BTC. The accumulation is part of its goal to hold about $10 billion worth of BTC.
The LFG is a project that aims to create and provide greater economic sovereignty and security through the use of open-source software. It is focused on supporting Terra and TerraUSD, its flagship stablecoin.
The UST reserve is used to support the price of the stablecoin and bring it back to the peg. Folks can use it to exchange other assets that benefit from the reserve. Furthermore, the foundation offers funding and grants.
The LFG and Terraform Labs are currently in the news for various reasons. Not all of the positive news has been good, but the asset is still managing to consolidate its growth. Due to the recent rise of the Luna price, many people have been discussing its potential value. One of the founders of Terraform Labs, Do Kwon, has bet $1 million and $10 million that the price of Luna will not fall below $88 within a year.
Due to the recent rise of the Luna price, many people have been discussing its potential value. One of the founders of Terraform Labs, Do Kwon, has bet $1 million and $10 million that the price of Luna will not fall below $88 within a year.
The price of Luna went up by 17% during the end of March, and many people are starting to wonder if it is sustainable. The LFG has been burning to mint stablecoin UST, and garnered much attention. However, none of the incidents is affecting LUNA and Terraform Labs so far, as much. The development and growth of the project are still going strong, and time will tell if the project will last.
Bitcoin Wallet LFG Approaches Tesla’s Treasury Stash
Meanwhile, the Luna Foundation Guard’s bitcoin wallet surpasses Tesla’s total BTC reserves. It needs to add about 495.08 BTC to its account to do so. If LFG’s account were to surpass Tesla’s, in terms of public companies, it would only be below Microstrategy’s 125,051 BTC stash. The LFG wallet is currently the 18th largest BTC wallet in the world.
After acquiring 2,508.94 Bitcoin, the LFG wallet now holds 42,406.92 Bitcoin, valued at around $1.79 billion. It has not sent a single satoshi out of its wallet. There have been 68 transactions in the wallet, and various dust transactions have been sent to it daily.
LFG has been holding bitcoin to protect its UST reserves, but it also announced that it would add avalanche tokens to its reserves. Through a partnership with the Avalanche Foundation, LFG revealed that it would purchase $100 million worth of cryptocurrency.
Although LFG’s accumulation of Bitcoin did not significantly impact the price of Luna, it has raised the demand for Bitcoin. Analysts have assessed the Bitcoin price trend and forecast a rise to $50,000. They have discovered a bullish setup in the Bitcoin price chart and believe the currency is on track to burst through the psychological barrier of $50,000. Analysts say the data shows that Bitcoin’s downside is limited to $29,000.
Meanwhile, the global crypto market capitalization is $1.91T, a 3.04% increase since yesterday. Over the last 24 hours, the total crypto market volume is $84.76B, an increase of 0.00%.