The Amount of Money The Terra (LUNA) Foundation Spent to Rescue UST and LUNA Revealed!

According to a third-party audit by JS Held, a consulting firm based in Jericho, New York, the collapsed terra The Luna Foundation Guard (LFG), the organization behind its ecosystem, launched the algorithmic stablecoin in May. TerraUSD (UST) He spent $2.8 billion in crypto to defend his fix to the dollar.

Terraform Labs Spent $613M, Luna Foundation Guard Spent $2.8 Billion

The audit also shows that Terraform Labs (TFL), the developer of the Terra blockchain, spent $613 million defending the fix. A stablecoin is an asset designed to reflect the value of another asset, usually fiat currencies.

UST was an algorithmic stablecoin designed to maintain its stability through market forces.

LFG and TFL’s efforts ultimately failed, and the value of UST fell to zero with the death of the $60 billion ecosystem. The collapse sparked a widespread crisis across the crypto industry, with numerous lenders, brokers, and exchanges filing for bankruptcy protection due to their exposure to the ecosystem.

Do Kwon, founder of Terraform Labs, said:

in cryptocurrencies While there have been multiple bankruptcies recently, the case of Terra, where a transparent, open-source, decentralized stablecoin fails to maintain peg parity and its creators spend private capital to defend it, and centralized custody, where its operators misuse others’ money (customer funds) for financial gain It is important to distinguish between the bankruptcy of their platform.”

Do Kwon’s whereabouts are still unknown after Interpol issued a Red Notice to law enforcement around the world.

*Not investment advice.

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