Luna Foundation Guard is an organization that supports Terra ecosystem. They have announced that they sold 80 081 bitcoin and other holding coins to prevent the crash on May 8, and May 10.
Before the de-pegging, the Luna Foundation Guard (LFG), held over 80K BTC.
1/ The Luna Foundation Guard had a reserve of the following assets as of Saturday, May 7, 2022:
· 80,394 $BTC
· 39,914 $BNB
· 26,281,671 $USDT
· 23,555,590 $USDC
· 1,973,554 $AVAX
· 697,344 $UST
· 1,691,261 $LUNA
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
The company sold Bitcoins worth approximately 3 billion UST, but the transaction is currently inactive due to Terra blockchain being suspended.
Luna spoke via Twitter:
“Beginning on May 8, when the price of UST began to drop substantially below one dollar, the Foundation began converting this reserve to UST. The Foundation executed on-chain Swaps and transferred BTC directly to a counterparty in order to allow them to trade quickly with the Foundation. Directly sold 26,281,671 USDT & 23,555,590 USDC for an aggregate 50,200,071 UST· Transferred 52,189 BTC to trade with a counterparty, net of an excess of 5,313 BTC that they have returned, for an aggregate 1,515,689,462 UST. On May 10, when UST had fallen to $0.75… Sold 33,206 BTC for an aggregate 1,164,018,521 UST.”
Luna was unable to stabilize stablecoin UST and collapsed the next day.
LFG had 80,394 Bitcoin on May 7. However, when $UST began to fall, they converted the Bitcoin reserve to $UST. The reserve was left with 313 BTC at the time of writing.