Is LUNA Foundation Currently Offering Purchased Bitcoin At A Discount

Is LUNA Foundation Currently Offering Purchased Bitcoin At A Discount?

The LUNA foundation intends to utilize $1.5 billion worth of Bitcoin to ensure that Terra’s UST continues to be linked to the USD, notwithstanding the severe correction that has occurred across the board in the cryptocurrency market, including the Bitcoin market. In addition to being in charge of the management of the network’s reserves, the LFG is in charge of guaranteeing that the network’s stablecoin token is always pegged at a ratio of 1:1 to the US dollar.

The Plan of the LUNA (LFG)

When it comes to the LFG plan to lend otc trading platforms $760 million to trade the bitcoin market, details have yet to be released. ALSO READ GMT Investments Review: Trading Tools You Need to Make Profit Easier. AIGMarkets Review: Is AIGMarkets a Scam or Secured? LocalTrade Expert Review – Is LocalTrade Scam or Legit? Then, once the market has reached a state of equilibrium, LFG will approach Terraform labs for a loan of 750 million UST in order to equalize its reserves. The LFG made the observation that this decision was made after the council’s meeting had concluded. It went over the following: Do Kwon, CEO of Terraform Labs, provided an additional explanation of the move that was made by the LFG.

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To be clear, Known did not intend to sell LFG’s Bitcoin holdings. It is simply “using” the coins for a specific amount of time in order to boost the value of the UST for this short period of time, as the LFG will most likely increase its Bitcoin holdings over the long run. Because of the lack of a specific market bias for UST transactions, we believe it is necessary for us to have funds readily available to be deployed in the market. The loan will be repaid in bitcoin after the market has stabilized, which will bring the value of our bitcoin reserves up.

The Essential Compendium of Alternative Strategies

Bitcoin forms the basis for 92 percent of LFG’s $2.92 billion in reserves. As a result of this recent drop in the value of Bitcoin (BTC), the company needs to take the required precautions to guarantee that its stablecoin token will continue to be tied to the value of the US Dollar. In the past week, the value of Bitcoin has decreased by 12.8 percent, while the USD equivalent of UST has been pegged at $0.99, a marginally lower value than before. The value of LUNA, Terra’s native token, dropped by almost CHECK OUT  
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