After days of public speculation, the Singapore-based Luna Foundation Guard (LFG) has finally revealed the current balance of its billion-dollar Bitcoin holdings, including other digital currencies in their reserves, before the UST and LUNA ordeal. The foundation is also looking to compensate users affected after the algorithmic stablecoin lost its peg.
Luna Foundation Guard’s Bitcoin reserves down to 313 BTC
Prior to the collapse of the stablecoin and its sister token LUNA last week, the LFG reportedly accounted for over 80,300 Bitcoin in reverse, in addition to some other major cryptocurrencies, all of which raised the reserve valuation to over $3 billion.
However, when the stablecoin began to lose its dollar peg, the foundation was prompted to offload the reserve to sustain UST. Although the primary reason for the reserve was to help preserve the stablecoin price from severe market conditions, those bitcoins sold were still unable to save UST, as the price kept dropping to the current mark at around $0.13.
In a thread on Twitter, Luna Foundation Guard revealed their current Bitcoin balance is 313 BTC, about $9 million at today’s price. They also hold 39,914 BNB ($12 million) and almost two million AVAX ($66 million), bringing the overall reserve to $87 million. This represents about a 97% decrease from the previous $3 billion value on 7th May.
LFG also disclosed they hold 1.8 billion UST ($180 million), and 222.7 million LUNA, all of which are staked with Terra’s validators.
Terra investors want compensation
LFG’s reserve disclosure today comes as disgruntled investors continually chanting for a revival or compensation plan. Although the foundation is also reported to have $260 million in cash, the funds combined are still not sufficient to repay the $1.5 billion requested by the community for compensation.
However, Luna Foundation Guard has said it’s planning on how to compensate the investors affected by the fall of the tokens. The LFG has yet to provide details on this but said that UST investors with smaller balances will be settled first. “We’re still discussing various distribution methods and updates are on the way,” the foundation said.
The LFG’s restricted cash will make it much more difficult to split from the main chain and start a new version of Terra, especially without external investment. The blockchain‘s only choice right now may be to give back coins and call it quits.
Source: https://www.cryptopolitan.com/luna-foundation-guard-reserve-is-87-million/