The Luna Foundation Guard (LFG), in charge of running the algorithmic stablecoin called UST, did a technical audit. The review’s goal was to find out everything about TerraUSD’s assets and the work done to fix them (UST). LFG is working on handling claims of stolen money, insiders, people who hold currency in other wallets, or people who use amounts that are against the rules. According to the study, LFG and TFL spent about $3.4 billion to keep the UST peg stable. You can buy and sell cryptocurrencies with BitProfit software.
On November 16, the Luna Foundation Guard tweeted the results of JS Held’s technical audit. Based on the audit, LFG spent about $2.8 billion to keep the TerraUSD (UST) peg between May 8 and May 12. There are 80,081 Bitcoins and 49,8 million stablecoins in this amount.
No Embezzlement of Luna Foundation Guard Funds
Terraform Labs added $613 million to the peg. The study says that LFG spent all of its cash to keep the UST exchange rate from changing.
LFG’s original goal was to hold $10 billion worth of Bitcoin. This would have made it the second-largest holder of Bitcoin after Coinbase. When there was a lot of chaos in the market, the UST peg could suddenly lose more than $2.5 billion of its value. Investors lost $60 billion worth of cryptocurrency because of the event.
When people say bad things about it, the Luna Foundation Guard also tries to defend itself. It says that no one stole the LFG’s money, that insiders didn’t get special treatment, and that nobody tried to hide money in other accounts. Since May 16, all money has been stored in safe self-hosted wallets.
Do Kwon, who started Terra, says their situation is unique in cryptocurrency because it’s never happened before. He also talked about the FTX scandal, in which the company’s founders were found to have stolen money from their customers.
The Luna Foundation Guard bought bitcoin worth $1.5 billion to add to the reserves of their most popular stablecoin, U.S. Terra.
The UST Forex Reserve now has bitcoins worth about $3.5 billion. Thus, it puts it in the top 10 bitcoin holders in the world. Another type of cryptocurrency, Avalanche, is worth more than $100 million.
This week, the Luna Foundation Guard made its most recent bitcoin purchase by doing an over-the-counter (OTC) swap with cryptocurrency primary broker Genesis for $1 billion in UST and $1 billion in bitcoin. Also, to buy bitcoin, it gave $500 million to a company called Three Arrows Capital.
Changes in the Price of Cryptocurrencies and Significant Purchases by Institutions
The price of bitcoin fell by 9.1% on Thursday. 7.3% less Luna, used to run the Terra network, was created. When these things happened simultaneously, stock prices fell sharply and widely.
Josh Lim, who works at Genesis Global Trading and is in charge of derivatives, says, “Between where crypto-native market players are active and where Terra is, there has been a gap. It was made by people who know a lot about encryption for people who know a lot about encryption.”
He said, “There’s another part of the market where most people are institutions.” The investor said they are still waiting to buy bitcoin, put it in cold storage, and trade CME futures on bitcoin. Genesis is working to close this gap and make it possible for more institutional capital to join the competitive arena. There are many ways in which these two markets are different.
Genesis is one of the most successful wholesale loan companies in the cryptocurrency business. The company is adding to its Luna and UST reserves by making this deal with the Luna Foundation Guard. It will use these assets to get in touch with the people it borrows from, who may be looking for a risk-free way to join the cryptocurrency ecosystem.
Because of this, Genesis can also give some Terra assets to people who would have trouble trading them.
Petr is a serial tech entrepreneur and the CEO of Apro Software, a machine learning company. Whenever he’s not blogging about technology for itechgyan.com or softwarebattle.com, Petr enjoys playing sports and going to the movies. He’s also deeply interested in mediation, Buddhism and biohacking.