Avalanche (AVAX) collapsed Monday as traders feared the Luna Foundation Guard (LFG) could dump its holdings of the token.
AVAX is trading at $32.41, down 6% in the past 24 hours. The token’s losses were caused just after the Luna Foundation Guard said it plans to use its remaining reserves to return some value to UST holders.
This could imply a possible liquidation of its AVAX holdings. The LFG currently has nearly 2 million AVAX tokens, valued at $65.2 million. It had bought the tokens earlier this year to diversify its UST reserves.
LFG sold over 80K BTC
In a huge disclosure, LFG listed the possible steps needed to stop the crash. The foundation disclosed that as of May 7, 2022, the fund held more than 80K BTC, 39.9 BNB, 1.97 million AVAX and other cryptocurrencies. To avoid the crash, LFG sold or traded 80,081 Bitcoins and other possession tokens. According to the data, the foundation now owns 1,973,554 AVAX, 39,914 BNB, only 313 BTC and other coins.
The number of Avalanche and BNB tokens has remained the same. The announcement of the foundation to use the remaining assets to compensate the remaining and smallest holders, the expectation of a further price decline has been raised.
While the LFG’s BNB holding is $11 million. The BNB token is trading at an average price of $298 at press time. The token has shown marginal growth in the past 24 hours.
Binance’s LUNA Investment Valued at $3000
On May 8, when the UST de-pegging began, the AVAX token was trading at a price of over $54. The LFG’s AVAX valuation was $106.5 million. The price of AVAX has fallen by more than 30% in the last 7 days. Meanwhile, Terra’s stablecoin UST is trading at an average price of $0.126. The token has seen a massive dump of over 87% in the past 7 days.
However, the LFG also owns 1.84 billion UST (about $236 million) and 222.7 million LUNA (about $45.5 million). Meanwhile, Binance’s CEO CZ revealed that they have invested about $3 million in the LUNA. That investment is now valued at $3,000.
Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he’s not writing, he plays video games, watches a thriller, or works out outside. Reach me at [email protected]
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