The Luna Foundation Guard (LFG) is reporting dumping more than $2.4 billion worth of Bitcoin (BTC) last week as the stablecoin TerraUSD (UST) collapsed.
The LFG, a non-profit organization built to support the Terra (LUNA) ecosystem, held a reserve of 80,394 BTC on May 7th.
Explains the LFG in a long series of tweets,
“Consistent with its non-profit mission and 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.
The Foundation did so by directly executing on-chain swaps and transferring BTC to a counterparty to enable them to enter trades with the Foundation in large size and on short notice…
Transferred 52,189 BTC to trade with a counterparty, net of an excess of 5,313 BTC that they have returned, for an aggregate 1,515,689,462 UST.”
Terraform Labs sold another 33,206 BTC after UST fell to $0.75. TerraUSD is trading at $0.087983 at time of writing.
In total, LFG and Terra sold 80,082 Bitcoin. With Bitcoin trading for $30,161 at time of writing, that total is worth more than $2.4 billion.
LFG says it plans to use its remaining holdings to compensate the remaining users of UST.
“The Foundation is looking to use its remaining assets to compensate remaining users of UST, smallest holders first. We are still debating through various distribution methods, updates to follow soon.”
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