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A NON-PROFIT ORGANIZATION FOCUSED ON UST

 A NON-PROFIT ORGANIZATION FOCUSED ON UST

LFG bought just over 2,830 BTC, valued at $ 134 million at the current local market price of $ 47,400, this week, the confirmed bitcoin primary address shows. Significantly, all purchases took place on Monday. Last week, it received about $ 125 million of BTC each day of the week.


"We haven't seen a major purchase since March 28," Arcane Research's Vetle Lunde told CoinDesk in a Twitter interview. "Last week, the LFG sent USDT $ 125 million on all days of the week and $ 160 million on Saturday to Jump Trading, which traded BTC trading shortly thereafter." The USDT is a token of tether, the world's largest stablecoin by market value.


LFG announced last month that it has raised $ 1 billion with the sale of LUNA, the traditional Terra blockchain, to build a bitcoin-denominated reserve as an additional layer of stablecoin security for Terra's dollar-pegged stablecoin UST . , the fourth largest stablecoin. The funding cycle was led by Jump Crypto and Three Arrows Capital.


The foundation increased the size of the bitcoin reserve to $ 3 billion earlier this month and was using tether to buy BTC. Tether helps users overcome market turmoil by keeping 1: 1 peg in U.S. dollars.


"The deposit will help keep the UST peg in the dollar during the deviation of the down anchors," Lunde told CoinDesk in a Telegram interview. The coin was able to sell the dollar peg by issuing and destroying LUNA tokens. Of all the UST created, the $ 1 Luna is burned at the Terra blockchain.


As of early Wednesday, the LFG has accumulated 27,785 BTC worth $ 1.3 billion, exceeding the original target of $ 1 billion. The primary ether address now contains stablecoins worth $ 988 million, which can be used to fund additional BTC purchases. It could earn another $ 800 million by converting its UST storage into a modem.



Although there is no formula or frequency of purchase and no deadline for building a designated area, the process will be completed in the next two weeks if the LFG returns to the previous purchase pattern.


"If LFG continues to buy at the same price as last week and $ 800 million remains unchanged, LFG will complete the construction of the BTC reserve on April 6. Considering the fixed BTC price of $ 47,000 until April. 6, LFG will have 48,800 BTC in its BTC. Save it when you are done, "Lunde said in a blog post on Tuesday.


"If LFG re-uses its $ 800m UST reserve in BTC, this process will be completed by April 14, and another * ~ 17,000 BTC will be added to the reserve, resulting in reserves reaching 65,000 BTC," he said. Lunde.


Which is to say that, at least for a short time, the way to resist at least bitcoin seems to be on the high side. Terraform Labs founder and CEO Do Kwon recently tweeted that LFG could eventually increase the storage size to $ 10 billion.



Bitcoin had last traded close to $ 47,500, changing slightly a day. The cryptocurrency rose by about 13.5% last week, the largest increase in one week since April 2021, data provided for the TradingView show marriage platform.



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