Luna Foundation Guard raises $1 billion to form Bitcoin reserve for UST stablecoin
The Luna Foundation Guard (LFG) has raised $1 billion through an over-the-counter sale of LUNA, the native token of the Terra blockchain.
Proceeds from the $1 billion sales will go towards establishing a Bitcoin-denominated forex reserve for UST, Terra’s biggest stablecoin. The reserve will act as a “release valve” for UST redemptions; it is designed to ensure that the price of the stablecoin remains pegged to that of the dollar during sharp selloffs in crypto markets.