It turned out that the Bitcoin reserve of 'Terra (LUNA)' which became zero value overnight was only 1.2 billion yen, which was more than 450 billion yen

The problem that the market price of the virtual currency 'Terra (LUNA)' plunged 99.99% and the use of Bitcoin held by LUNA's affiliate Luna Foundation Guard (LFG) as a reserve was unclear. LFG has released information about. As a result, it was found that the reserve, which was about 80,000 BTC (equivalent to about 452 billion yen at the rate at the time of procurement), has been reduced to 313 BTC (about 1.23 billion yen). LFG says it will use the small amount of assets left to compensate investors, but there is widespread view that burnt stones are water.

LFG Reserves Dwindle to Just 313 Bitcoins From 80K After UST Crash

What happened to the bitcoin reserve behind Terra's UST stablecoin?

Around May 10, 2022, the cryptocurrency Terra (LUNA), which was in the top 10 of the market capitalization ranking, and the stablecoin TerraUSD (UST), which was part of the LUNA ecosystem, crashed. To deal with this situation, the Luna Foundation Guard (LFG), a non-profit organization established to support LUNA, has announced that it will utilize Bitcoin, which was prepared as a reserve, but remittances will be made. There were criticisms because the explanation of the previous point and the specific purpose of use was not sufficient.

Bitcoin reserve of 'Terra (LUNA)' which fell by 99.99% is missing, suspicious person appears at the founder's home --GIGAZINE

In response, LFG posted a series of tweets on Twitter, disclosing information about the amount and use of reserves. According to it, as of May 7, LFG had 80,394 BTC worth 3.5 billion dollars (about 450 billion yen).

Then, from the 8th when the peg with the UST dollar began to collapse, we sent about 50,000 BTC to the counterparty (business partner) . LFG explains this 'to enable large and short-term transactions.'

As UST continues to decline, LFG will buy UST directly with the remaining approximately 33,000 BTC as 'the last attempt to protect the pegs.' However, the decline in cryptocurrencies did not stop.

As a result of these measures, only 313 BTC of Bitcoin remained in LFG's hands. LFG owns multiple other virtual currencies, but most of them are LUNA and UST whose values ​​have plummeted, so the total balance excluding them is about 80 million dollars (about 10.3 billion yen). It's not a small amount, but it's insignificant compared to the collapse of LUNA, which had a market capitalization of more than $ 40 billion (about 5.1 trillion yen) as of April.

LFG says that it will use the remaining funds to compensate UST users, and is considering a specific distribution method.

in Software,   Web Service, Posted by log1l_ks