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$3 Billion in Bitcoin Was Sold To Save the UST Stablecoin From Collapsing
In a last-ditch effort to save the UST stablecoin from collapsing, $3 billion in bitcoin was sold
The Luna Foundation Guard, a fund established by Terra founder Do Kwon, said Monday that it spent almost all of its bitcoin reserves last week in a failed bid to preserve terraUSD — or UST, for short.
Luna Foundation Guard announced in a series of tweets that it moved 52,189 bitcoins to “trade with a counterparty” after UST went below its targeted $1 peg. Terra sold 33,206 bitcoins directly in a last-ditch attempt to protect the peg, according to the foundation.
Luna Foundation Guard has just 313 bitcoins remaining in its reserve as of Monday, valued at around $9.3 million.
“We are still debating through various distribution methods, updates to follow soon”
More stablecoins are upsetting the market, resulting in even more antics.
Following the unexpected fall of TerraUSD, the prices of numerous other stablecoins (whose values are apparently tied to the dollar) have begun to suffer.
The DEI currency from Deus Finance is now selling at roughly 66 cents and has been oscillating since Sunday, hitting a low of around 52 cents early Monday morning.
Unlike other prominent stablecoins such as USD Coin and Tether, which are (supposedly) backed by real dollars or assets, DEI’s value is determined by algorithms that make transactions.
Unlike Terra, where the comparable coin’s value plummeted, the value of DEUS seems to be holding up well.
As a consequence, the reputation of stablecoins, which were previously regarded as the safest commodities in the unpredictable cryptocurrency sector, has suffered significant damage.
Anyone who expected UST to be worth $1, such as someone lending UST via a decentralized financial system, is in danger.
The UST is an algorithmic stablecoin, which is a form of stablecoin. The price support methods for UST are semi-automated and function effectively in most cases, even when there is a lot…
