Investing.com – Terraform Labs, the non-profi. organization responsible for LFG’s Luna Bitcoin reserves, has explained what happened to .
While the LFG Luna Foundation Guard has broken its silence on bitcoin reserves, it has announced that it will work to offset the losses of investors who have incurred significant losses due to the destabilization of the “stable” digital currency UST.
Most of the reserve was spent to protect the UST from a fall and collapse entirely, and in the statement the institution made on Twitter, it was announced that the losses of small investors would be covered first.
In the statement made by LFG, it was said that Bitcoin reserves have been used to keep UST stable since the beginning of the crash on May 8th. Accordingly, the majority of 80,000 Bitcoins were used from reserves to keep UST stable. Currently, it is clear that there are 313 bitcoins left in their wallet.
According to the latest developments, it is known that “LFG” had 3.1 billion in reserves just a week ago, but now it has only 87 million dollars left. Despite spending billions of dollars in bitcoins to overcome the UST crisis, LFG did not succeed and the price of UST fell to $0.05 and its price is currently $0.09.
The statement mentions that LFG has resorted to using swaps and loans using Bitcoin reserves on the Blockchain throughout the week to keep the UST stable per dollar. Comments on the statement focus on the demand for clearer information on the counterparties with which LFG trades.
What is left in LFG’s reserves?
After his statement, although eyes were on the CEO of Terra, there was no new statement from the head of the ecosystem yet.
In turn, the CEO of Binance continues to make statements about . Today, Vitalik Buterin, co-founder of Ethereum, made a statement supporting the creation of a compensation plan for both names and small investor losses first.
On the other hand, LFG plans to use the remaining assets to compensate UST users for losses. According to the statement, LFG currently owns 39,914 BNB, 1,973,554 Avalanches, 1,847 billion UST and 222,713 Luna, along with 313 Bitcoin.