Luna Foundation Guard Raises $1B for Bitcoin UST Stablecoin Reserve

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Luna Foundation Guard Raises $1B for Bitcoin UST Stablecoin Reserve
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The Luna Foundation Guard (LFG) has secured a $1 billion private token sale to establish a decentralized reserve denominated in Bitcoin for its UST stablecoin.

The non-profit LFG was set up in Singapore in January to help manage and grow the Terra ecosystem which is the ninth-largest in terms of market capitalization at the time of writing. is currently the fourth largest stablecoin in the industry, with a market cap of $12.3 billion. Its supply has grown by almost 2,000% since the same time last year, enabling it to surpass DAI.UST is an algorithmic stablecoin with supply growing and shrinking in response to demand.

“A decentralized Reserve can provide an additional avenue to maintain the peg in contractionary cycles that reduces the reflexivity of the system.” The reserve will initially use BTC, but there are plans to stock it with other non-correlated assets over time. The LUNA tokens purchased by the VC companies will be locked up for a four-year vesting period.LUNA prices have reacted to the news with a 14.5% surge over the past 24 hours. At the time of writing, the token was trading at $56, wiping out all losses over the past week, according to CoinGecko.

LUNA has still taken a 20% hit over the past month, however, and is currently trading down 46% from its Dec. 27 all-time high of $103.

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