{"id":18708,"date":"2022-02-22T21:53:57","date_gmt":"2022-02-22T20:53:57","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=18708"},"modified":"2022-02-22T21:54:05","modified_gmt":"2022-02-22T20:54:05","slug":"luna-foundation-guard-raises-1-billion","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/luna-foundation-guard-raises-1-billion\/","title":{"rendered":"Luna Foundation Guard raises $1 billion to establish a Bitcoin-based UST reserve"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" id=\"luna-foundation-terra-chose-bitcoin-as-the-currency-for-the-forex-reserve-because-it-is-less-connected-to-the-terra-ecosystem-according-to-the-company\">Luna Foundation (Terra) chose Bitcoin as the currency for the Forex Reserve because it is &#8220;less connected to the Terra ecosystem,&#8221; according to the company. <\/h5>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"766\" height=\"400\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-304.png\" alt=\"Luna Foundation Guard raises $1 billion to establish a Bitcoin-based UST reserve | Coinscreed\" class=\"wp-image-18711\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-304.png 766w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-304-300x157.png 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-304-750x392.png 750w\" sizes=\"(max-width: 766px) 100vw, 766px\" \/><\/figure>\n\n\n\n<p>Luna Foundation Guard, a charity focusing on the open-source stablecoin network powering Terra USD, has raised $1 billion through the sale of LUNA tokens.<\/p>\n\n\n\n<p>Jump Crypto and Three Arrows Capital led the $1 billion round, <a href=\"https:\/\/twitter.com\/terra_money\/status\/1496162889085902856\" target=\"_blank\" rel=\"noreferrer noopener\">Terra announced in a tweet on Tuesday<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a>, with participation from DeFiance Capital, Republic Capital, GSR, Tribe Capital, and others. <\/p>\n\n\n\n<p>The $1 billion in profits from the sale will &#8220;go towards building a Bitcoin-denominated Forex Reserve for UST,&#8221; a stablecoin in the Terra ecosystem, according to the website.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-twitter\"><blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">1\/ The long awaited [REDACTED] \ud83d\udc8e3 is here!<br><br>\ud83d\udce3 The Luna Foundation Guard (LFG) has closed a $1 billion private token sale to establish a decentralized <a href=\"https:\/\/twitter.com\/search?q=%24UST&src=ctag&ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$UST<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> Forex Reserve denominated in <a href=\"https:\/\/twitter.com\/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$BTC<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>! \ud83d\udce3<br><br>\ud83e\uddf5\ud83d\udc47<\/p>&mdash; Terra \ud83c\udf0d Powered by LUNA \ud83c\udf15 (@terra_money) <a href=\"https:\/\/twitter.com\/terra_money\/status\/1496162889085902856?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">February 22, 2022<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/div><\/figure>\n\n\n\n<p>&#8220;One popular complaint of algorithmic stablecoins is its reflexive nature, as well as the potential risk of a &#8216;bank run,' in which demand for the stable outstrips supply, causing compounded price declines in both native tokens,&#8221; Terra added. <\/p>\n\n\n\n<p>&#8220;Although overwhelming adoption of the UST as a consistently stable asset despite market volatility should already disprove this, a decentralized reserve can provide an extra channel to sustain the peg in contractionary cycles, reducing the system's reflexivity.&#8221; <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"What is Terra? UST and LUNA explained with Animations\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/U9lrH0loAns?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Terra stated it picked <a href=\"https:\/\/coinscreed.com\/staging\/bitcoins-200-week-moving-average-will-rise-despite-market-fluctuation.html\" target=\"_blank\" data-type=\"post\" data-id=\"18681\" rel=\"noreferrer noopener\">Bitcoin (BTC)<\/a> as the currency for the Forex Reserve because the crypto asset is &#8220;less connected to the Terra ecosystem.&#8221; <\/p>\n\n\n\n<p>More information about the UST reserve's purpose and design will be disclosed in the following weeks, according to the platform.<\/p>\n\n\n\n<p><a href=\"https:\/\/docs.terra.money\/docs\/learn\/protocol.html\" target=\"_blank\" rel=\"noreferrer noopener\">According to the protocol's website<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>, it uses &#8220;fundamental market forces of supply and demand&#8221; to keep the price of coins like UST steady.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-plain has-medium-font-size is-layout-flow wp-block-quote-is-layout-flow\"><p>&#8220;Stablecoins are only valuable to users if they maintain their price peg [&#8230;] When the demand for Terra is high and the supply is limited, the price of Terra increases. When the demand for Terra is low and the supply is too large, the price of Terra decreases.&#8221;<\/p><\/blockquote>\n\n\n\n<p>The Luna Foundation Guard, or LFG, is a Singapore-based organization that was founded in January to help build the Terra ecosystem and ensure the long-term viability of its stablecoins. <\/p>\n\n\n\n<p>Following a decision by the LFG on Feb 18, Terraform Labs founder Do Kwon announced the infusion of 450 million UST \u2014 around $450 million \u2014 into the Anchor protocol's reserves.<\/p>\n\n\n\n<p>The price of <a href=\"https:\/\/coinscreed.com\/staging\/terra-luna-price-rises-to-a-new-time-high-77-16.html\" target=\"_blank\" data-type=\"post\" data-id=\"14758\" rel=\"noreferrer noopener\">Terra (LUNA)<\/a> is $54.03 at the time of posting, up more than 1.7 percent in the last 24 hours.<\/p>\n\n\n\n<p>In December 2021, the network's overall worth reached an all-time high of more than $20 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Luna Foundation (Terra) chose Bitcoin as the currency for the Forex Reserve because it is &#8220;less connected to the Terra ecosystem,&#8221; according to the company. Luna Foundation Guard, a charity focusing on the open-source stablecoin network powering Terra USD, has raised $1 billion through the sale of LUNA tokens. Jump Crypto and Three Arrows Capital [&hellip;]<\/p>\n","protected":false},"author":34,"featured_media":18712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[152,1531,6200],"class_list":["post-18708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-stablecoin","tag-terra-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/images-2022-02-22T214556.051.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/18708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=18708"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/18708\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/18712"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=18708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=18708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=18708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}