Avalanche (AVAX) slumped on Monday as merchants feared that the Luna Foundation Guard (LFG) may dump its holdings of the token.
AVAX is buying and selling at $32.41, down 6% over the previous 24 hours. The token’s losses have been triggered simply after the Luna Foundation Guard stated it intends to make use of its remaining reserves to return some worth to UST holders.
This may entail a doable liquidation of its AVAX holdings. The LFG presently holds almost 2 million AVAX tokens, valued at $65.2 million. It had purchased the tokens earlier this 12 months to be able to diversify its UST reserves.
LFG bought over 80K BTC
In an enormous revelation, LFG talked about the doable steps it took to cease the crash. The basis disclosed that on May 7, 2022 the fund held over 80K BTC, 39.9 BNB, 1.97 Million AVAX and different cryptocurrencies. In order to keep away from the crash, LFG bought or swapped 80,081 Bitcoins and different holding tokens. As per the info, the inspiration is now holding 1,973,554 AVAX, 39,914 BNB, simply 313 BTC, and different cash.
The quantity of Avalanche and BNB tokens has remained the identical. The foundation’s announcement to make use of remaining belongings to compensate the remaining and smallest holders has raised the anticipation of additional value dump.
While the LFG’s BNB holding quantities to be $11 million. The BNB token is buying and selling at a mean value of $298, on the press time. The token has proven marginal development within the final 24 hours.
Binance’s LUNA funding valued at $3000
On May 8, when de-pegging of the UST started, the AVAX token was buying and selling at a value of over $54. The LFG’s AVAX valuation stood at $106.5 million. AVAX’s value has dropped by over 30% within the final 7 days. Meanwhile, Terra’s stablecoin UST is buying and selling at a mean value of $0.126. The token has seen a large dump of greater than 87% within the final 7 days.
However, the LFG can be holding 1.84 billion UST (approx $236 million) and 222.7 million LUNA (approx $45.5 million). Meanwhile, Binance’s CEO CZ revealed that they invested round $3 million within the LUNA. That funding is now valued at $3000.
The offered content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.
