Terraform Labs Gives $820M in LUNA Tokens to Luna Foundation Guard

LFG's reserves now stand at about $2.4 billion.

AccessTimeIconApr 14, 2022 at 5:07 p.m. UTC
Updated Apr 14, 2022 at 5:43 p.m. UTC

Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has written for Forbes and Reuters. He holds BTC and ETH.

Terraform Labs, the organization behind the UST algorithmic stablecoin (UST) and its LUNA token, gave 10 million LUNA tokens worth $820 million to Luna Foundation Guard (LFG), the nonprofit that is building up bitcoin (BTC) reserves for UST, The Block reported.

  • Terraform Labs transferred the tokens to a wallet connected to Luna Foundation Guard on Thursday, Terra Finder's publicly accessible blockchain transaction portal shows. Both Terra's official Twitter handle and the transaction details tagged the transfer as a "gift" to LFG.
  • Led by Do Kwon, Terraform Labs is the South Korea-based firm behind the TerraUSD blockchain protocol that hosts UST – the largest algorithmic stablecoin with a market capitalization of $17 billion – and its token pair LUNA.
  • Singapore-based Luna Foundation Guard was created to support the Terra ecosystem with development grants and to build up a reserve for UST to help maintain its peg. Do Kwon is a member of LFG's council.
  • The transfer helps prop up LFG's reserves, which now stands at $2.43 billion, according to a data tracker shared by LFG's official Twitter handle, with 69.8% of the reserves being in bitcoin.
  • The data tracker shows that LFG holds 2.25 million LUNA tokens which is fewer than the 10 million transferred. Terra Finder shows that 7.8 million LUNA token were forwarded to another wallet. Before the transfer, LFG's holding of LUNA stood at 50,000, according to a Twitter post that tracks LFG's reserve and its changes.
  • When the transaction was executed, Terra's LUNA was trading at $88. It has since slid more than 6% since to $82.
  • A Terraform Labs representative didn't immediately return a request for comment.

UPDATE (5:36 UTC): added detail about the part of the gift that was forwarded.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has written for Forbes and Reuters. He holds BTC and ETH.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has written for Forbes and Reuters. He holds BTC and ETH.

Trending

1
CoinDesk - Unknown
Shiba Inu Plans to Launch Stablecoin, Reward Token, Collectible Card Game

SHIB prices hardly budged on the news but gas token BONE and ecosystem token LEASH rallied.

CoinDesk - Unknown
2
CoinDesk - Unknown
The Dollar Wrecking Ball

The DXY hits its highest levels since 2002.

CoinDesk - Unknown
3
CoinDesk - Unknown
Ethics Watchdog Bars US Government Employees From Writing Crypto Policy if Invested

A new legal advisory from the Office of Government Ethics bars federal workers who own crypto from working on policies that could influence the value of their digital assets.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: BTC Settles at $20K as Voyager Files for Bankruptcy

The Toronto-based crypto lender is the second high-profile crypto firm to do so in July.

CoinDesk - Unknown