Where is the bitcoin reserve that Terra created for UST?
Investors are eager to know what happened to the 3 billion in bitcoin purchased by Terra to back its failed stablecoin. They now have the answer.
Luna Foundation Guard, a fund created by Terra creator Do Kwon stated Monday that it used almost all of its bitcoin last week in a futile effort to save terraUSD — or UST for short.
The foundation had more than 80,000 bitcoins. This was nearly $3 billion in value last week. Other tokens included BNB, USDC, USDB, and avalanche. Kwon had previously promised that the bitcoin would be used in the event there was a sharp fall in the UST’s value.
Luna Foundation Guard tweeted that it had transferred 52,189 bitcoins in order to “trade with a counterparty” when UST fell below $1. Terra also sold 33,206 bitcoins in an attempt to defend the peg.
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