Luna Foundation Guard Raises $1Bn to Save UST Dollar Peg
The LFG (Luna Foundation Guard) recently raised over 1 billion dollars in its private token sale. The NPO was established with the aim to boost the development of the Terra framework. Now, the organization will use these funds to secure the peg of UST against market fluctuations.
As the primary stablecoin used in the Terra ecosystem, UST holds utmost significance for the venture. The NPO revealed information regarding the capital raise on its official Twitter account. Names like Defiance Capital, Jump Crypto, Three Arrows Capital, GSR, Tribe Capital, and Republic Capital led the sale.
LFG originated after Terraform Labs accumulated 4 billion dollars worth of LUNA. The recently acquired funds will be stored in Bitcoins, and the foundation will use them if the token fails to cope with the market fluctuations during extreme conditions.
Do Kwon, Terraform Labs’ Chief Executive Officer, also stated that LNG aims to scale its decentralized reserve to an even larger scale in the coming years. While the private token sale was taking place, the UST kept gaining market capitalization.
Ever since January 24th, the stablecoin has gained over 1 billion dollars in value, standing among the most valued decentralized stablecoin projects in the market. It is currently trading near a 12.3 billion dollars market cap.
Do Kwon stated that the UST’s decentralized stablecoin is still trading steadily despite the market conditions. As headlines boost UST’s popularity, the advantages of decentralized money are apparent to everyone.
The Ethereum-based DAI, the second most valued decentralized stablecoin based on market cap, is currently 2 billion dollars behind UST with 9.6 billion dollars. The numbers go to show how Terra is sure to leave its mark in the market.
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