As the cryptocurrency industry continues to be shaken by the failure of the Terra blockchain and the falling prices of its native token, LUNA, and its algorithmic stablecoin, UST, suspicions have been raised about the whereabouts of around 80,000 Bitcoin units belonging to the ecosystem.
The claimed Bitcoin was meant to be held in trust by the Luna Foundation Guard, a non-profit organization tasked with maintaining the ecosystem.
Changpeng Zhao, the CEO of the world’s largest cryptocurrency exchange by trading volume, first raised the issue on Twitter, asking where Terra’s Bitcoin reserves had gone, after expressing his own views on the embattled block chain.
Personal opinion. NFA.
This won’t work.
– branch does not give any value to the new branch. That is an illusion.
– all transactions after a previous snapshot cannot be aborted, both on-chain and off-chain (exchanges).
Where is all the BTC that was supposed to be used as a reserve? https://t.co/9pvLOTlCYf
— CZ 🔶 Binance (@cz_binance) May 14, 2022
Bitcoin sent to Gemini and Binance
In response to the question, Luke Martin, a prominent member of the cryptocurrency community on Twitter, claimed that the Foundation had transferred the funds to two destinations, citing Elliptic, a crypto analytics company.
The first 52k was routed to Gemini, with the remaining 28k going to Binance. Another crypto analytics site, CryptoQuant, said that 37k was delivered to Gemini on May 9. The foundation has leased these 37k units to market makers in an effort to prevent the collapse of the ecosystem.
As of press time, the LUNA foundation had not disclosed the whereabouts of its Bitcoin holdings, although Terra CEO Do Kwon had previously claimed that the ecosystem’s Bitcoin move would be made public soon.
He also used the opportunity to appeal for patience, saying his team is “juggling multiple tasks at the same time.”
3/ Neither I nor any institution with which I am affiliated benefited from this incident. I sold neither moon nor mold during the crisis.
— Do Kwon 🌕 (@stablekwon) May 13, 2022
Today, the cryptocurrency has continued to decline and now has the potential to go even higher. With a 24-hour trading volume of $5,412,174,518 and a live market capitalization of $1,860,988,288, LUNA is currently trading at $0.00028400, down 32.88 percent.
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This post The Terra Foundation (LUNA) sends over $2 billion of Bitcoin to Gemini and Binance. Whats Next? – Coinpedia – Financial Technology and Cryptocurrency News Media
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