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Where did all the bitcoin (BTC) go? – Terra (LUNA) reveals reserves

 


The drama surrounding the blockchain project Terra is entering the next round, as the development team behind the crashed associated cryptocurrency LUNA and the failed algorithmic stablecoin UST have now broken down exactly how the project's Bitcoin reserves were sold off in a new Twitter thread 

The responsible Luna Foundation Guard (LFG) also promises to “compensate the remaining UST users”, whereby small investors should be given preference.


As the LFG now discloses, the foundation has sold 80,081 bitcoin ( BTC ) or 99.61% of its bitcoin reserves in the past few days . It “sold 33,206 BTC for 1,164,018,521 UST” and converted another 47,188 BTC to TerraUSD (UST) in a direct swap with a third party. So there are now 313 BTC left.


Interestingly, LFG has not yet sold any reserves in the form of Binance Coin ( BNB ) and Avalanche ( AVAX ) cryptocurrencies, of which there are 40,000 and 2,000,000 currency units, respectively.


The chart below shows the current composition of LFG assets:



The reason for the massive sales is the attempt to stabilize the company's own stablecoin, which is the origin of the debacle surrounding the Terra project with its decoupling from the US dollar, through purchases. The fewer currency units in circulation, the more the course moves back in the direction of the targeted USD 1, at least that is the hope


It is doubtful whether this connection can be restored and whether long-term success of the algorithmic stablecoin can be achieved .


As a result of the monetary policy measures taken, the reserves of the LFG are now composed as follows:

Crypto investors who had committed the associated Terra cryptocurrency LUNA in staking should have their funds paid out within the next 20 days. However, those funds are now arguably almost worthless as the LUNA price has fallen more than 99% from the record high and is currently trading at around $0.0002.


The former rising star of the crypto industry, who now boasts an ecosystem worth US$ 50 billion, now only has a measly US$ 82 million in his reserve, which is why the crypto community is only stunned by the implosion of the project commented .

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