The Luna Foundation Guard updated the world concerning its crypto-asset reserves and shared a promise to compensate the remaining users of failed stablecoin UST.
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The Terra saga continues. In a Twitter thread, the team behind the failed algorithmic stablecoin TerraUSD (UST) and the token LUNA shared precisely how much Bitcoin (BTC) and crypto assets they had disposed of.
The Luna Foundation Guard (LFG) also promised to “compensate remaining users of $UST, smallest holders first,” with the remaining assets.
In summary, 80,081 BTC, or 99.61% of the Bitcoin that LFG guarded, has exited the fund. The group confirmed the 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 outlines 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:
Meanwhile, crypto enthusiasts with staked LUNA tokens should see their tokens returned to their wallets in the next 20 days. However, they will be worth less, as 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.”