Terra buys $100M worth of AVAX tokens to back its stablecoin

Alex Dovbnya

Luna Foundation Guard Bought $100 Million in AVAX Tokens, Going Beyond Bitcoin

Luna Foundation Guard, a nonprofit that supports the Terra blockchain, has moved to diversify its crypto reserves by purchasing $100 million worth of Avalanche (AVAX) tokens, Bloomberg reports:

The move aims to increase the stability of the native UST stablecoin, whose market cap has now risen to $16.7 billion, according to data from CoinMarketCap.

LUNA, the Terra blockchain’s governance token, has been on the move since LFG made an announcement about creating a billion-dollar Bitcoin reserve.

Image by tradingview.com

The Bitcoin buying wave started by the blockchain project also became a major bullish catalyst for the largest cryptocurrency, peaking to an annual high of $48,234 in late March before returning to the $43,000 level.

In a funny tweet, Terra co-founder Do Kwon announced that he bought another $230 billion worth of Bitcoin before vacuuming the house.

At the time of going to press, the Luna LFG wallet contains $1.56 billion worth of Bitcoin.

Kwon’s most recent Bitcoin purchase failed to increase the price of the LUNA token. The high flyers lost no less than 8% on Wednesday. It is currently 12.5% ​​lower than the all-time high of $119.18, recorded just two days ago.

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