Terraform labs and Luna Foundation Buying $100 Million worth of AVAX
On April 7, TerraformLabs (TFL) and the Luna Foundation Guard (LFG), Singapore-based non-profit building reserves for the stable coin TerraUSD (UST), declared that they will purchase $100 million worth of AVAX tokens in an over-the-counter trade from the Avalanche foundation to increase its UST reserves.
Earlier this week, LFG had purchased $231 million in bitcoin to likewise help its UST reserves, yet this gives off an impression of being whenever LFG first is becoming involved with another cryptocurrency, pushing its absolute Bitcoin stores to around US$1.6 billion. With the AVAX market share fundamentally more modest than bitcoin's, LFG is presently a huge market purchaser of AVAX.
“Welcoming $AVAXas the second major layer one crypto asset next to $BTC as part of the $USTReserve,” LFG wrote on Twitter. “The inclusion of @avalancheavax's native token marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.”
LFG intends to purchase up to $3 billion worth of bitcoin to keep in its reserve to help UST, which has a generally$16.7 billion market capitalization and stands as the fourth biggest stable coin.
TFL declared the further US $100 million treasury Swap for AVAX to exhibit its obligation to Avalanche through cross-chain improvement and coordinated effort - Terra and Avalanche are presently teaming up on a gaming subnet.
Do Kwon, Founder of Terra had declared that Terra will add US$10 billion worth of Bitcoin to USTreserves in March.
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