Terraform Labs tweeted earlier today that it had contributed 10 million Luna to the Luna Foundation Guard (LFG).
The LFG is a treasury that supports the Terra ecosystem’s growth and development.
Since the beginning of the year, the LFG has been building cryptocurrency reserves and accumulating more Bitcoin. Currently, the foundation holds over 40,000 BTC. The purchase is part of the company’s plan to amass $10 billion in Bitcoin.
The LFG is a project that aspires to employ open-source software to build and deliver greater economic autonomy and security. Terra and TerraUSD, its flagship stablecoin, are its primary emphasis.
The UST reserve is used to support the stablecoin’s price and return it to the peg. It can be used to trade other assets that are backed by the reserve. In addition, the foundation provides funds and grants.
For numerous reasons, the LFG and Terraform Labs are currently in the headlines. Although not all of the good news has been beneficial, the asset has managed to maintain its growth.
Many individuals have been debating the Luna’s future value as a result of its recent price increase. Do Kwon, one of Terraform Labs’ founders, has staked $1 million to $10 million on the price of Luna not falling below $88 in a year.
Luna’s price has increased by 17% by the end of March. However, many people are beginning to doubt its long-term viability.
The LFG has been working hard to mint the stablecoin UST, and has attracted a lot of interest. However, none of the instances have had a significant impact on LUNA and Terraform Labs thus far. The project’s development and expansion are still continuing strong and only time will tell if it will last.
LFG Surpasses Tesla’s BTC Reserves
Meanwhile, the bitcoin wallet of the Luna Foundation Guard exceeds Tesla’s total BTC reserves. To do so, it will need to deposit 495.08 BTC into its account. In terms of public firms, LFG’s account would only be behind Microstrategy’s 125,051 BTC stockpile if it were to overtake Tesla’s. The LFG wallet is now the world’s 18th largest Bitcoin wallet.
The LFG wallet currently has 42,406.92 Bitcoin, worth about $1.79 billion, after obtaining 2,508.94 Bitcoin. It hasn’t sent even a single satoshi from its wallet. The wallet has 68 transactions in it, and numerous dust transactions are sent to it on a daily basis.
To protect its UST reserves, LFG has been holding bitcoin. It did, however, announce that avalanche tokens would be added to its reserves. LFG said that it would buy $100 million worth of bitcoin through a partnership with the Avalanche Foundation.
Although LFG’s Bitcoin acquisition had little effect on the price of Luna, it did increase demand for Bitcoin. Analysts have examined the Bitcoin price trend and predict that it will grow to $50,000 in the near future.
They believe Bitcoin is on course to break through the psychological barrier of $50,000 after spotting a bullish setup in the price chart. According to analysts, Bitcoin’s downside is restricted at $29,000.
In the meantime, the worldwide crypto market capitalization is $1.91 trillion, up 3.04 percent from yesterday. The overall crypto market volume has increased by 0.00 percent in the previous 24 hours to $84.76 billion dollars.