Avalanche (AVAX) slumped on Monday as merchants feared that the Luna Basis 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 might entail a attainable liquidation of its AVAX holdings. The LFG at present holds almost 2 million AVAX tokens, valued at $65.2 million. It had purchased the tokens earlier this 12 months with a view to diversify its UST reserves.
LFG offered over 80K BTC
In an enormous revelation, LFG talked about the attainable steps it took to cease the crash. The muse disclosed that on Might 7, 2022 the fund held over 80K BTC, 39.9 BNB, 1.97 Million AVAX and different cryptocurrencies. To be able to keep away from the crash, LFG offered or swapped 80,081 Bitcoins and different holding tokens. As per the information, 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 worth dump.
Whereas the LFG’s BNB holding quantities to be $11 million. The BNB token is buying and selling at a mean worth of $298, on the press time. The token has proven marginal progress within the final 24 hours.
Binance’s LUNA funding valued at $3000
On Might 8, when de-pegging of the UST started, the AVAX token was buying and selling at a worth of over $54. The LFG’s AVAX valuation stood at $106.5 million. AVAX’s worth has dropped by over 30% within the final 7 days. In the meantime, Terra’s stablecoin UST is buying and selling at a mean worth of $0.126. The token has seen a large dump of greater than 87% within the final 7 days.
Nevertheless, the LFG can also be holding 1.84 billion UST (approx $236 million) and 222.7 million LUNA (approx $45.5 million). In the meantime, 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 might embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability on your private monetary loss.