Hello people!š
Luna Foundation Guard has not yet sold AVAX.
Could this be a problem for Avalanche?
I personally do not know the AVAX project in depth but I am concerned that it could be tragically affected by a possible sale.š
The situation is the following right now:
After having a treasury of almost $4 billion, there is now only $82 million left under the protection of Terra's Luna Foundation Guard, of which $74 million is invested in AVAX. Will they sell those Avalanche tokens?
The LFG purchased $100 million equivalent in AVAX in early April to bolster UST's backing. This also has the purpose of strategically aligning both ecosystems.
Thanks to this, the Avalanche token was one of the most affected by the tragedy of the Terra ecosystem.
In the midst of the Luna Foundation's attempt to rescue the UST parity, they sold all the Bitcoin they had been accumulating (equivalent to more than $3 billion) and practically the entire LUNA reserve.
However, the only coin that remained intact in the treasury was AVAX. It is possible that a pact has occurred not to destroy these tokens, and thus avoid a possible further bleeding of the price of the Avalanche cryptocurrency.
AVAX has a market capitalization of $1,434 million. This means that the LFG owns approximately 5% of that total, which, although not a very significant amount, can undoubtedly cause fear in the market.
$74.41 million equivalent in AVAX, will remain under the protection of Terra's LFG.
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