Avalanche cleared the air over the $92 million worth of AVAX tokens held by Terraform Labs and the Luna Foundation Guard (LFG).
The blockchain said that it does not believe Terra will sell its holdings of the tokens, and that it is willing to assist in any AVAX sales.
The holdings represent a small chunk of total AVAX supply, and could cause chaos in its prices if dumped. The LFG holds about 1.97 million tokens, while Terraform labs has about 1.07 million, Avalanche said.
The Terra Luna collapse has left many investors clueless about its future. However, Do Kwon, Terra’s head has introduced some plans to revive the chain
Terra holds over 3 Mln AVAX tokens
After the constant inquiry done by the AVAX community, the team informed that they are immobilized at the moment. It added that Terraform Labs (TFL) acquired around 1.09 million AVAX tokens and locked them up for a year. Avalanche mentioned that this amount of tokens represents 0.5% of the AVAX’s last week’s volume.
It further added that LFG purchases an additional 1.97 million AVAX tokens in a bid to use them for the reserve pool. This amount is calculated to be 0.9% of Avalanche’s last week’s generated volume. Meanwhile, AVAX looks hopeless here as LFG hasn’t revealed any plans to utilise holding AVAX tokens amid the proposed chain fork.
Recently, Terra disclosed that LFG is still holding almost 2 million AVAX tokens with 1.8 Billion UST and 222 million LUNA. Avalanche mentioned that they are ready to work with a sensible trading strategy if any sales of the token is required.
Tokens down by 60% since LFG purchase
Terra had added $200 million worth of AVAX tokens to its reserves earlier this year. However, the plan to build a $10 billion reserve wasn’t enough to protect the LUNA and UST tokens from the historic drop. The Avax token is trading at an average price of $30.10, at the press time. It has registered a jump of over 4% in the last 24 hours.
Meanwhile, the token is down by over 60% down since Terra’s acquisition. The Avalanche token was trading at around $84 on the day of purchase. The AVAX’s total market valuation has dropped to $8.1 billion in the meantime. However, Terra’s LUNA is down by almost 100% while its stablecoin has registered a collapse of 92% since then.
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Original Source :coingape.com
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