TerraLabs Sold Over 80,000 BTC To Rescue Its Stablecoin, Luna

The crypto market has experienced many bloodbaths in the past. But last week’s crash had more catastrophic effects on the market than recent bearish trends, mainly on the stablecoins. UST, a stablecoin issued by Terraform Labs, is an example that stunned the crypto world as the coin collapsed and dropped its value from $1 to $0.15 between May 9 to May 14, nearly losing 85% of its value. Afterward, on May 16, the Luna Foundation Guard (LFG) announced on Twitter that they had sold out their Bitcoin (BTC) reserves between May 8 to 10 to rescue its stablecoin. Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market It was not the first time a crypto project collapsed. But the previous collapse had not the terrible effects as the stablecoin UST has suffered in the most recent bloodbath. LFG, an organization aimed at supporting the blockchain innovators developing a decentralized economy, revealed its reserves of 80,394 BTC and other digital currencies it held as of May 07, 2022. The Foundation reportedly began converting its assets into reserves against UST on May 8, 2018, when UST’s price fell significantly. It took these steps immediately since it is a non-profit firm with a primary motto to strengthen Terra’s ecosystem. Similarly, the firm explained it quickly shifted the asset by transferring the digital assets to a counterparty, which does not require short notic...