Worries about the collapse of Terra (LUNA) and its ecosystem are endless. The platforms behind Terra are known to hold various cryptocurrencies – one of which is the popular altcoin Avalanche (AVAX). While AVAX investors expressed their concerns about whether Terraform Labs and LFG will sell AVAX, Avalanche made a statement on the subject. Here are the details…
Will Terraform Labs and Luna Foundation Guard sell AVAX?
Terraform Labs behind the Terra (LUNA) ecosystem and Luna Fondation Guard (LFG) are known to have various cryptocurrencies in their hands. In fact, as we reported Kriptokoin.com , LFG sold a large amount of its Bitcoin reserves to save the crashed TerraUSD (UST). In its latest statement, Avalanche cleared doubts about the $92 million AVAX tokens held by Terraform Labs and LFG.
Avalanche said that it does not believe Terra will sell its tokens and is willing to assist with any AVAX sale if that happens. The amount of AVAX held by both organizations represents a small fraction of the AVAX supply. However, if these tokens are sold, it is predicted that there may be chaos in prices. Avalanche said that LFG has about 1.97 million tokens, while Terraform labs has about 1.07 million tokens.
Avalanche: Tokens not in motion
After querying by the AVAX community, the team reported that the tokens are currently inactive. He added that Terraform Labs (TFL) purchased approximately 1.09 million AVAX tokens and locked them for a year. Avalanche stated that this token amount represents 0.5 percent of AVAX’s volume last week.
2/ Terraform Labs (TFL) purchased 1.09M AVAX, with a one year lockup. This amount represents around 0.5% of the past week’s AVAX volume.
— Avalanche 🔺 (@avalancheavax) May 19, 2022
Additionally, LFG added 1.97 to use them for the reserve pool. He added that he has purchased one million AVAX tokens. This amount is equivalent to 0.9 percent of Avalanche’s volume produced last week. Avalanche stated that they are ready to work with a sensible trading strategy should the token sale become necessary. Terra added $200 million worth of AVAX tokens to its reserves earlier this year. However, the plan to build a $10 billion reserve was not enough to protect the LUNA and UST tokens from historic decline.
