Luna Foundation Guard buys $100 million in AVAX tokens for stablecoin reserve

Cryptocurrency • April 7, 2022, 2:05PM EDT
The Block

The Luna Foundation Guard (LFG), a Singapore-based nonprofit building reserves for the stablecoin Terra (UST), announced Thursday that it will buy $100 million worth of AVAX tokens from the Avalanche foundation to augment its reserves.

LFG had bought $231 million in bitcoin the day prior to also boost its UST reserves, but this appears to be the first time LFG is buying into another cryptocurrency. With the AVAX market share significantly smaller than bitcoin’s, LFG is now a significant market buyer of AVAX. 

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“Welcoming $AVAX as the second major layer one crypto asset next to $BTC as part of the $UST Reserve,” LFG wrote on Twitter. “The inclusion of @avalancheavax's native token marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.”

LFG plans to buy up $3 billion worth of bitcoin to keep in its reserve to support UST, which has a roughly $16.7 billion market capitalization and stands as the fourth largest stablecoin, The Block previously reported.

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MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.

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