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Bitcoin Price Continue To Plunge Hard, LUNA Foundation Guard Adds $37,863 worth Bitcoins To Its Stash

Written by: Nidhi Kolhapur

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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May 6, 2022

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Terra’s (LUNA) price has dropped 31% in the last four weeks, wiping out all of the year’s gains, and the token is struggling to stay above the $85 support level, despite outperforming the overall cryptocurrency market by 20%.

However, the rise in smart contract deposits, as evidenced by the increase in TVL, and strong demand from derivatives traders hint to a near-term price recovery.

According to the statistics, Terra owners are unconcerned with the 31% price drop and are more focused on the ecosystem’s growth in comparison to its competitors.

Terra (LUNA) one of the biggest BTC whales

With the help of Genesis Trading and Three Arrows Capital, the Luna Foundation Guard has increased its Bitcoin reserve fund. 

The non-profit organization, which was founded this year to support Terra’s UST stablecoin, revealed on Thursday that it has purchased additional 37,863 Bitcoins, increasing its total Bitcoin reserves to about 80,394 coins. With a stockpile worth just under $3 billion, LFG is one of the world’s largest Bitcoin “whales.”

Terraform Labs, Terra’s development business, founded LFG in January to assist the Terra ecosystem. Terraform Labs CEO Do Kwon stated at the time that the company’s goal was to “continuously support the peg stability of Terra’s stablecoins” as well as other improvements in the Terra ecosystem.

Luna Foundation Guard is getting closer to its goal of amassing up to $10 billion in Bitcoin to back algorithmic stablecoin U.S. Terra, also known as UST, with this latest purchase. LFG purchased $139 million worth of BTC in late March.

According to CoinMarketCap, UST has become the most popular algorithmic stablecoin, with a market valuation of approximately $18.6 billion. Only Tether (USDT) and USD Coin (USDC) have a higher circulating supply and market value.

The Luna Foundation Guard isn’t the only company buying Bitcoin in the news. MicroStrategy, a publicly traded business analytics firm, continues to accumulate, independent of Bitcoin’s price. The corporation increased its reserves by 4,197 BTC in April, bringing its total assets to 129,218 BTC.

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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