On Monday, Avalanche (AVAX) plummeted as traders thought the Luna Foundation Guard (LFG) would sell its token holdings.
AVAX is currently trading at $32.41, down 6% in the last 24 hours. The token’s losses occurred shortly after the Luna Foundation Guard announced that it would spend its remaining reserves to compensate UST holders.
This could result in the company’s AVAX holdings being liquidated. The LFG presently has about 2 million AVAX tokens worth $65.2 million in its possession. The tokens were purchased early this year to diversify its UST reserves.
LFG traded over 80k Bitcoin
In a big disclosure, LFG revealed the feasible procedures taken to end the crash. The fund owned over 80K BTC, 39.9 BNB, 1.97 Million AVAX, and other cryptocurrencies on May 7, 2022, according to the foundation. LFG sold or swapped 80,081 Bitcoins and other holding tokens to prevent the crash. According to the data, the foundation now holds 1,973,554 AVAX, 39,914 BNB, 313 BTC, and other coins.
The number of Avalanche and BNB tokens has not changed. The foundation’s announcement to use residual assets to compensate the remaining and smallest holders has fueled speculation of a price drop.
The LFG’s BNB investment is valued at $11 million. At press time, the BNB token was trading at an average price of $298. In the last 24 hours, the token has increased fairly.
Binance’s LUNA investment priced at $3000
The AVAX token was trading at a price of above $54 on May 8, when the UST de-pegging occurred. The AVAX value of the LFG is $106.5 million. In the last seven days, the price of AVAX has decreased by more than 30%. Terra’s stablecoin, UST, is now trading at an average price of $0.126. The token has lost over 87% of its value in the last 7 days.
However, the LFG holds 1.84 billion UST (about $236 million) and 222.7 million LUNA (around $45.5 million). Meanwhile, CZ, the CEO of Binance, disclosed that the company has invested roughly $3 million in LUNA. That $300 investment is now worth $3000.