Cryptocurrencies: Terraform Labs donates another $880 million to Luna Foundation Guard

In the race for dominance in the crypto sector, crypto projects compete in ardor and growth strategies. This is the case of Terraform, which seeks to build the largest reserve of cryptocurrency and thus become a must in the sector. Explanations.

The Luna Foundation Guard (LFG)

The Luna Foundation Guard (LFG) is a non-profit organization attached to the Terra blockchain protocol. The organization is on a mission to collateralize the algorithmic stablecoin of the Terra network to keep it pegged to the US dollar. The LFG organization has therefore received a donation of 10 million LUNA tokens. These millions of LUNA tokens are equivalent to almost 880 million dollars, if we consider the current rate of the dollar.

However, Terraform Labs has yet to specify what these funds will be used for. According to some, the funds will be partly used to build the digital gold reserve of the company and another part will be burned in order to maintain the UST/USD peg.

Additionally, it should be noted that the Luna Foundation Guard currently occupies the third place on the list of the biggest holders of digital gold, just behind MicroStrategy and Tesla. This considerable position is explained in particular by the large purchases of bitcoins (BTC) made by Terraform Labs. Just a few days ago, the company came into possession of nearly 2,500 bitcoins or $100 million. To date, the organization’s reserves are said to stand at $2.44 billion. It should be noted that bitcoin alone accounts for 70% of this figure.

Terraform’s Big Vision

Do Kwon, the co-founder of Terra had already announced that he was working to that Terra’s reserve reaches 10 billion dollars. He therefore does not hesitate to frenziedly buy bitcoins and already has a reserve of more than 2.40 billion dollars. He had previously claimed that as long as the UST stablecoin is mined, the company will buy bitcoin.

However, the impressive reserve acquired can already allow Terra to better promote the UST stablecoin and maintain its peg to the dollar in the event of an extreme market drop. But it does not stop there. In fact, he plans to create a bitcoin standard as part of its monetary policy. If this turns out to be successful, the blockchain would have implemented a system that none of the other blockchains have yet achieved. It will thus become a must in the cryptocurrency and blockchain technology sector. In addition, Terra also wants to contribute to the growth of other stablecoins while offering new and ever more innovative offers.

However, even with its acquisitions, LUNA has seen its price drop by 7% in the past 30 days. It currently stands at US$81.65.

Terraform Labs continues its goal of building the largest cryptocurrency reserve by making yet another donation to the LFG organization. At the same time, she is developing a more or less surprising new plan which will consist of setting up a bitcoin standard.

Source : Cointelegraph

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Cryptocurrencies: Terraform Labs donates another $880 million to Luna Foundation Guard

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