Smart contracts blockchain Avalanche (AVAX) In his tweet, he talked about the 2 million AVAX tokens held by the Luna Foundation Guard (LFG).
These tokens terra It was acquired by LFG to support the now-crashed UST stablecoin of its blockchain.
“LFG Has No Plan To Use AVAX Tokens”
In a statement on Twitter, Avalanche said that LFG has not announced any plans to use its remaining AVAX tokens:
“Given Terra’s hard fork plans, LFG has not announced any plans to use AVAX tokens. Should any sale of LFG reserves be considered, the Avalanche Foundation is ready to work with LFG on a sensible trading strategy.”
Considering that the Avalanche token is around $30 at the time of this writing, it is understood that the company’s AVAX reserve is around $60 million.
The second largest token in LFG’s holdings, with a dwindling $240 million reserve, is known as AVAX.
Avalanche tweeted that she made this statement because “some members of the Avalanche Community were asking for details about $AVAX reserves.”
Cryptocurrency investors speculated about their current plans for AVAX tokens and the impact it would have on the market in case of any sale.
This announcement comes after organizations with strong ties to the Terra ecosystem, including Avalanche, an $8 billion layer 1 blockchain, were warned to show more transparency in the wake of market events last week.
1/ Some members of the Avalanche Community have inquired about details around the $AVAX reserves that the Luna Foundation Guard and Terraform Labs hold.
Tl;dr: the AVAX is currently immobilized. Below is a transparency report 👇
— Avalanche 🔺 (@avalancheavax) May 19, 2022
Terraform Labs Has Additional 1.1 Million AVAX Tokens
In addition, Avalanche said that Terraform Labs has another 1.1 million AVAX tokens locked for 1 year.
According to Avalanche, AVAX tokens held by TFL and LFG represent 0.5% and 0.9% of the token’s weekly volume.
In April, Luna Foundation Guard and Terraform Labs announced that they have collectively purchased $200 million worth of AVAX tokens from the Avalanche Foundation.
In return, the Avalanche Foundation received $100 million worth of LUNA from Terraform Labs and $100 million worth of stablecoin UST from the Luna Foundation Guard.
*Not investment advice.