Investors are panic selling on Monday as they fear the Luna Foundation Guard (LFG) may drain their altcoin reserves. As LFG announced on Twitter:
- 313 BTC
- 39,914 BNB
- 1,973,554 AVAX
- 1,847,079,725 UST
- 222,713,007 LUNA (221,021,746 of which are currently shared with validators)
Fear of dump causes altcoin investors to panic sell
Altcoins in reserve There are approximately 2 million Avalanche (AVAX) among them. That’s roughly $65 million at the current AVAX price. The Terra team has previously sold 80,081 Bitcoin (BTC) since May 7 to maintain the price stability of UST. Now investors fear that the team will sell AVAX to protect UST and LUNA. Avalanche, the 12th-largest cryptocurrency by market capitalization, soon lost 6% after LFG announced its remaining reserves on Monday.
AVAX, a $1 stablecoin pegged to $1 on May 8, was trading at over $54 when UST began to surge. LFG’s AVAX reserve was $106.5 million. The AVAX price then lost 35% in the last 7 days, along with the overall market. Meanwhile, UST is trading at an average price of $0.126. It has lost more than 87% of its value in the last 7 days. While LUNA was completely wiped out from the market, the highlights of the day came from Binance CEO CZ…
Binance’s $3000 investment in LUNA
Binance CEO Zhao says the exchange bought $3 million of LUNA in 2018, with 15 million LUNA now worth $3,000. We have got the details atKriptokoin.com in this article.
Should I be worried about this news?
Luna Foundation Guard (LFG) may sell towed altcoins to support UST and LUNA. That would mean a sale of $65 million. That’s about 4% of the roughly $9 billion AVAX volume. Just like with Bitcoin, a possible sale can make the AVAX price fluctuate.
Meanwhile, LFG’s Avalanche and BNB reserves have been the same since early May. The foundation’s announcement that it will use the remaining assets to compensate its remaining and smallest investors raises expectations for further price drops.
