Home Cryptocurrency Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

by Gordon James

The price of Bitcoin (BTC) has declined to a low $3,000. In the last 24 hours, $750 million worth of BTC was traded on Terra’s LFG exchange in just one day. This is equivalent to around 7% of total UST deposits by the end of June 2018 and shows how favourable trading conditions are for crypto-assets this year.

The “terra (luna price)” is a cryptocurrency that was created in April 2018. It has been selling $750M of Bitcoin and UST Depegs by 7%.

TerraUSD (UST), Terra’s native stablecoin that has been the buzz of the town for the previous several weeks, is now at its lowest point.

Due to UST liquidations and the overall market fall, UST is presently selling at a 7 percent discount, while Terra’s native token, LUNA, is down 37.6% this week.

Terra’s Stablecoin is no longer pegged.

TerraUSD, the largest decentralized stablecoin, has lost its peg in the previous 24 hours, which has been a disaster for Terra ecosystem investors. The depegging was triggered by a slew of withdrawals from Anchor Protocol, Terra’s largest Dapp.

The overall amount locked on the loan platform has decreased, according to the site. The majority of the platform’s investors withdrew their funds, causing the platform’s total deposits to plummet by $5 billion.

The protocol’s deposits are now just $9.3 billion, down from $14 billion before.

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

Following this, UST started to be removed from Curve’s liquidity pools, and Terra joined the party by liquidating $150 million in UST. Despite the fact that it redeposited $100 million, panic had already set in.

The UST peg did not take long to collapse, and by the end of yesterday, UST was trading at a 1.2 percent discount. However, the stablecoin is now shattered due to the larger market slump and Luna Foundation Guard’s (LFG) subsequent action.

LFG Makes a $750 Million Bitcoin Sale

The LFG said in a series of tweets that due to the unfavorable market conditions, it would be selling around $750 million worth of Bitcoin.

They camouflaged the sale by calling it a loan to OTC trading businesses and promising to buy the same amount of Bitcoin as soon as market circumstances improved.

The LFG reserve balance was reduced to $2.7 billion from $3.9 billion a week earlier. According to CoinCentral, the LFG just acquired $1.5 billion in Bitcoin for the reserve, bringing it closer to its goal of $10 billion.

However, investors were outraged by the dumping, and more individuals withdrew their Anchor deposits, putting LUNA and UST in a position.

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

The stablecoin UST was trading at a 7.4 percent discount at At the time of this report, the stablecoin UST was trading at a 7.4% discount at $0.926, the lowest it has ever been at, and it seems like the LFG reserve has not been able to fix it actively..926, the lowest it has ever been, at the time of this report, and it seems that the LFG reserve has not been able to actively correct it.

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

As a result of the overall market’s meltdown and the Terra ecosystem’s community response, the DeFi chain’s native token LUNA dropped 35.59 percent to $43.86.

This drop compounded an already dismal week in which the cryptocurrency lost more than 20%, bringing the weekly loss to 45.57 percent.

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

 

Although around $1.5 billion in money has already been committed to maintain the UST peg, according to Terra creator Do Kwon, it will take some time to see results.

7/ This will be an important opportunity for the terra and wider crypto community to gather empirical data on how LFG operates & fits into the Terra ecosystem.

Over the next several days, keep an eye on how LFG deploys reserves, not if they do so.

May 9, 2022 — Do Kwon (@stablekwon)

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

Terra’s LFG Sells $750M of Bitcoin, UST Depegs by 7% (Luna Price Update)

The “terra (luna) news” is about a company that has sold $750M of Bitcoin, UST Depegs by 7%. Luna has also released a price update.

Related Tags

  • terra (luna coin)
  • luna/ust price
  • luna/ust chart
  • terrausd
  • luna vs ust

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