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Terra Buys $100 Million Worth of AVAX Tokens to Back Its Stablecoin

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Thu, 04/07/2022 - 19:19
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Alex Dovbnya
Luna Foundation Guard has bought $100 million worth of AVAX tokens, moving beyond Bitcoin
Terra Buys $100 Million Worth of AVAX Tokens to Back Its Stablecoin
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Luna Foundation Guard, a non-profit that supports the Terra blockchain, has moved to diversify its crypto reserves by purchasing $100 million worth of Avalanche (AVAX) tokens, Bloomberg reports.

The move is meant to boost the stability of the native UST stablecoin, whose market cap has now swelled to $16.7 billion, according to CoinMarketCap data.  

LUNA, the governance token of the Terra blockchain, has been on a roll since LFG made an announcement about creating a billion-dollar Bitcoin reserve.  

LUNA
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The Bitcoin buying spree started by the blockchain project also became a major bullish catalyst for the largest cryptocurrency, which spiked to a yearly high of $48,234 in late March before retracing to the $43,000 level.     

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In a facetious tweet, Terra co-founder Do Kwon announced that he had purchased another $230 billion worth of Bitcoin before vacuuming the house.  

At press time, the Luna-LFG wallet holds $1.56 billion worth of Bitcoin.

Kwon’s most recent Bitcoin purchase failed to push the price of the LUNA token higher. The high-flying shed as much as 8% on Wednesday. It is currently down 12.5% from its all-time high of $119.18, which was recorded just two days ago.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.