Avalanche Team: The Luna Foundation Guard and Terraform Labs are Yet to Sell AVAX Reserves Bought at $200m in April 12

Avalanche Team: The Luna Foundation Guard and Terraform Labs are Yet to Sell AVAX Reserves Bought at $200m in April

Summary:

  • The team from Avalanche has issued a transparency report on the fate of the AVAX reserves that the Luna Foundation Guard and Terraform Labs hold.
  • According to Avalanche, Terraform Labs Purchased 1.09 million AVAX, and the Luna Foundation Guard Purchased 1.97 million AVAX back in April.
  • The Luna Foundation Guard has disclosed it has no plans to use or sell the AVAX in its reserves.
  • Avalanche has pointed out that it is ready to work with the Luna Foundation Guard on a sensible trading strategy should it plan to sell.

The team at Avalanche has issued a transparency report through Twitter on the fate of the AVAX purchased by Terraform Labs and the Luna Foundation Guard for $200 million back in April of this year.

The AVAX Held by the LFG and TFL is 1.4% of Avalanche’s Trade Volume in the Last Week.

According to the team at Avalanche, Terraform Labs purchased 1.08 million AVAX with a one-year lockup. In terms of magnitude and to highlight that the 1.08 million AVAX held by Terraform Labs could not impact the price of the digital asset if immediately sold, the team at Avalanche pointed out that it is the equivalent of roughly 0.5% of the past week’s trading volume of the digital asset.

Additionally, the Luna Foundation Guard purchased 1.97 million AVAX to be used as reserves for its UST peg. The team at Avalanche went on to highlight that this amount represented 0.9% of Avalanche’s trade volume in the last week, further hinting that its sale could not cause a massive dump for the digital asset.

The Luna Foundation Guard Has Expressed no Plans to Sell the AVAX.

The Avalance team confirmed that the Luna Foundation Guard had not expressed plans to sell the AVAX. However, should they reconsider, Avalanche was ready to work with the Luna Foundation Guard on a sensible trading strategy. They said:

Given the proposed Terra chain fork, LFG has disclosed no plans to use the AVAX.

Should any sales be contemplated for the LFG reserves, the Avalanche Foundation is ready to work with LFG on a sensible trading strategy.

Not Sure Avalanche Has Sold Luna and UST

To note is that the Avalanche (AVAX) currently held by Terraform Labs and the Luna Foundation guard was bought using UST and LUNA. The team at WuBlockchain has further pointed out that the value of AVAX and LUNA since the purchases have dropped by 60% and 100% respectively. In addition, it was not clear whether Avalanche has sold its UST and LUNA holdings as pointed out in the tweet below.