The LFG shared the volume of cryptocurrencies they held in their reserves and promised to compensate UST users. The price of TerraUSD dropped from nearly USD 19 billion to below USD 2 billion, severely hitting its market capitalization.
The Luna Foundation Guard (LFG) recently shared on Twitter the volume of cryptocurrencies they dumped and how much they still have in their reserves. The team behind the stablecoin UST and the LUNA token also promised to compensate users with the remaining assets.
The LFG has already taken 80,081 BTC, 99.61% of their holdings in that cryptocurrency, out of the fund. The organization confirmed the sale of 33,206 BTC for 1,164,018,521 UST. They did not account for the remaining 47,188 BTC while keeping 313 BTC in their reserves.
The group has not sold any Binance Coin (BNB) or Avalanche (AVAX), holding around 40,000 tokens of the former and 2,000,000 of the latter.
The Latest Announcement by Binance CEO Affects TerraUSD
The drop in the TerraUSD (UST) price from nearly USD 19 billion to less than USD 2 billion hit its market capitalization severely. However, the supply of UST on exchanges increased when the stablecoin started losing its value.
Following that panic, sales slowed down while high volumes of UST began to leave exchanges on May 11th. That may have happened due to those investors looking to buy UST cheaply, expecting the stablecoin to recover.
However, UST has been rapidly returning to exchanges since May 12th, indicating that most investors are selling their holdings at a loss.
A message from Binance CEO Changpeng Zhao may have contributed to that development. The executive criticized the Terra team for allegedly not communicating with them or devising a plan of action to follow.
Zhao confirmed that Binance did not buy any UST but added that they received 15,000,000 LUNA as part of the original investment. He also stated that the cryptocurrency exchange would let go of some assets.
UST is trading at around USD 0.088572 and has accumulated an 88.6% loss over the last seven days. While its trading market is above USD 409.52 million, its market capitalization is about USD 996.72 million, according to CoinGecko.
UK Treasury Seeks to Legalize Stablecoins amid the Crash of UST
The UK Treasury Department has decided to continue with the regulation of stablecoins as legal tender. Although the cryptocurrency community welcomes the bill, the decision is surprising due to the recent crash of the popular stablecoin TerraUSD (UST).
According to local media, the Treasury revealed its intention to regulate stablecoins across Britain during the Queen’s Speech.
Prince Charles announced the introduction of new laws in various sectors and measures to boost economic growth to improve living standards. He said that a bill would further strengthen powers to deal with illicit finance, reduce financial crime, and help businesses grow.
Everyone expected the recent collapse of the Terra ecosystem to raise alarm bells among regulators. However, the UK Treasury aims to ensure that the financial services industry is always at the forefront of technology and innovation.
By Alexander Salazar
