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Luna Foundation Guard (LFG) is dedicated to supporting a vibrant community of blockchain innovators. Recently, the project has committed a big raise through a sale of LUNA, the native cryptocurrency of the Terra ecosystem. Notably, the seeding round included participants from the usual round of venture capital giants. These ventures included Jump Crypto, Three Arrows Capital, Republic Capital, GSR, Tribe Capital, DeFiance Capital, and an enormous count of other angel investors.
LFG will bring a BTC denominated forex reserve
On Tuesday, the official page of Terra tweeted that a billion-dollar private token sale is one of the cryptosphere’s largest ones to date. Indeed, the Luna Foundation Guard has secured such a huge figure through private token sales.
Following the recent seeding round, the ecosystem also highlighted that it plans to introduce a decentralized reserve denominated in the coin designed by Satoshi Nakamoto for its UST. The world is soon going to witness a BTC denominated forex reserve for the UST stablecoin, tha will be established with a sale proceeds.
It is worth noting that the non-profit LFG was set-up in Singapore last month. And it intends to manage and grow the Terra ecosystem.
Why does the Luna Foundation Guard want to back UST?
TerraUSD (UST)is currently the fourth largest stablecoin project. Over the past one year, the total supply of the digital currency has witnessed a spike of nearly 2000%. Notably, it is an algorithmic stable crypto token with growing supply and scarcity. According to the brains behind Terra, UST has reflexive nature and the hypothetical risk of a bank run scenario. Additionally, the team noted that a decentralized reserve can offer an additional avenue to maintain the equivalency in the contractionary cycle that reduces the reflexivity of the system.
The reserve will initially use Bitcoin, while stocking it with other non-correlated assets over time. LUNA will remain locked up for four vesting periods.
LUNA’s price skyrockets
LUNA’s price has reacted to the news and plans of the Terra ecosystem relating to UST stablecoins. Following the announcement, the price of the digital currency surged by more than 14.5% in just a period of 24-hours. However the coin is still trading down by more than 46% since December 2021.
