Leading cryptocurrency Bitcoin (BTC) to $33,000 the macro situation was not the only reason. Same time BTC price indexed to BTC while falling algorithmic stablecoin USTFUD against . In particular, the fear that the BTC drop would destabilize the UST and the team would sell billions of dollars in BTC, fueled the fear. Now the expected announcement has come.
New Measure to UST
Especially increasing FUD UST, which could not maintain its value even though it was indexed to 1 dollar on Sunday, has now received good news. In the statement made by the Luna Foundation and Luna CEO Do Kwon, the step taken to address the concerns was stated.
With a new decision they took, the foundation 1.5 billion dollars will give credit. This loan 750 million dollars Bitcoin, the remaining half will be issued in the form of UST.
1/ The LFG Council just voted to deploy 1.5B in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Some more context on why and how: https://t.co/TfaAPkzgUJ
— Do Kwon 🌕 (@stablekwon) May 9, 2022
Do Kwon stated that the foundation does not want to get rid of its Bitcoin position in any way, and that is not the goal. The CEO stated that the aim is to put this capital into the hands of professional market makers and that this will increase liquidity. Stating that UST trades are no longer important, the famous name explained that the important thing is to have capital in the market.
LFG Stating that they took this decision unanimously, the team underlined that they have an important opportunity for both the team and the crypto money industry. UST as of now $18 billion It has value, and anything negative to this stablecoin will hit the industry hard.