Follow Himalaya Oxford Farm on Gettr/Twitter
Translated by:  Himalaya Oxford Visionary – boylatin1L

Luna Foundation Guard, the fund set up by Terra founder Do Kwon, has pledged to use bitcoin in a sharp drop in the value of the UST.  He said Monday that Terra sold 33,206 bitcoins outright as a last-ditch effort to defend the anchor as the UST fell below its expected $1 peg, the Financial Times reported May 16th.  However, it used up almost all bitcoin in its reserves last week, failing to save UST (terra USD).

Image Source: coingape

As of Monday, Luna Foundation Guard had just 313 bitcoins left in its reserves, worth about $9.3 million.  The company said it would use what’s left of its $85 million in crypto assets to compensate the remaining users.

UST is a stablecoin that relies on a complex set of codes and a floating token called luna to balance supply and demand and stabilize prices.

Image Source: getty

When UST began to fall below $1 last week, luna began to sell off, leading to a vicious cycle where UST plummeted below 30 cents, and luna became worthless.  According to CoinGecko, UST is now worth just 9 cents.

Reference: 
https://gnewsapp.com/post/p2543724/

Edited and proofread by:  Linda Progress
Posted by: Peter Chen

For more information, please follow us on:
Himalaya Oxford Visionary Farm: Twitter
Himalaya Oxford Visionary Farm: Gettr
Himalaya Oxford Visionary Farm: Discord